Pure Cycle (NASDAQ:PCYO) Stock Price Crosses Below 200 Day Moving Average - Time to Sell?

Key Points

• Pure Cycle Corporation's stock price fell below its 200-day moving average for the first time, trading at $10.22, below the average of $10.52.
• Recent analyst ratings have shifted, with Wall Street Zen downgrading Pure Cycle's rating from "hold" to "sell."
• The company has shown strong financial performance with a net margin of 49.58% and a return on equity of 10.19%, despite its stock decline.

Pure Cycle Corporation (NASDAQ:PCYO - Get Free Report)'s share price crossed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $10.52 and traded as low as $10.19. Pure Cycle shares last traded at $10.22, with a volume of 23,536 shares changing hands.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen lowered shares of Pure Cycle from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th.

Pure Cycle Stock Performance

The company's fifty day simple moving average is $10.24 and its 200 day simple moving average is $10.51. The company has a current ratio of 3.52, a quick ratio of 2.40 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $243.11 million, a P/E ratio of 18.36 and a beta of 1.32.

Pure Cycle (NASDAQ:PCYO - Get Free Report) last posted its quarterly earnings data on Wednesday, July 9th. The utilities provider reported $0.09 earnings per share (EPS) for the quarter. Pure Cycle had a net margin of 49.58% and a return on equity of 10.19%. The company had revenue of $5.14 million during the quarter.

Hedge Funds Weigh In On Pure Cycle

A number of large investors have recently added to or reduced their stakes in PCYO. Lazard Asset Management LLC increased its position in shares of Pure Cycle by 11,145.1% during the second quarter. Lazard Asset Management LLC now owns 5,735 shares of the utilities provider's stock valued at $61,000 after buying an additional 5,684 shares during the period. Kelleher Financial Advisors bought a new stake in Pure Cycle during the second quarter worth about $107,000. NorthRock Partners LLC bought a new stake in Pure Cycle during the second quarter worth about $108,000. BNP Paribas Financial Markets boosted its stake in Pure Cycle by 87.0% during the fourth quarter. BNP Paribas Financial Markets now owns 8,832 shares of the utilities provider's stock worth $112,000 after acquiring an additional 4,110 shares in the last quarter. Finally, Deutsche Bank AG bought a new stake in Pure Cycle during the fourth quarter worth about $126,000. Hedge funds and other institutional investors own 51.39% of the company's stock.

About Pure Cycle

Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. It operates in two segments, Wholesale Water and Wastewater Services, and Land Development. The company engages in the wholesale water production, storage, treatment, and distribution systems; wastewater collection and treatment systems; development of 930-acre master-planned community; oil and gas leasing business; and construction and leasing of single-family homes.