PureCycle Technologies (NASDAQ:PCT) Sets New 52-Week Low - Should You Sell?

Key Points

• PureCycle hit a new 52-week low of $5.06 (last $5.20) on Monday with about 1.08M shares traded, trading well below its 50-day and 200-day moving averages of $8.12 and $9.95.
• Analyst views are mixed: Cantor Fitzgerald cut its price target from $16 to $14 and kept an "overweight" rating, while the consensus across four analysts is a Moderate Buy with an average price target of $13.
• The company reported weak fundamentals—Q4 EPS of ($0.42) missed estimates, revenue of $2.7M well below the $6.37M forecast, a very negative net margin and ROE, and a high debt-to-equity ratio of 7.62.

PureCycle Technologies, Inc. (NASDAQ:PCT - Get Free Report)'s stock price hit a new 52-week low on Monday . The company traded as low as $5.06 and last traded at $5.1980, with a volume of 1081434 shares changing hands. The stock had previously closed at $5.28.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on PCT shares. Cantor Fitzgerald lowered their price objective on shares of PureCycle Technologies from $16.00 to $14.00 and set an "overweight" rating for the company in a research report on Friday, February 27th. Weiss Ratings reissued a "sell (d-)" rating on shares of PureCycle Technologies in a report on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $13.00.

PureCycle Technologies Stock Performance

The company has a debt-to-equity ratio of 7.62, a quick ratio of 2.15 and a current ratio of 2.26. The company has a market cap of $900.29 million, a price-to-earnings ratio of -4.11 and a beta of 2.07. The firm's 50-day moving average price is $8.12 and its 200 day moving average price is $9.95.

PureCycle Technologies (NASDAQ:PCT - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.42) earnings per share for the quarter, missing the consensus estimate of ($0.25) by ($0.17). PureCycle Technologies had a negative net margin of 2,185.10% and a negative return on equity of 204.74%. The business had revenue of $2.70 million during the quarter, compared to analyst estimates of $6.37 million. On average, sell-side analysts anticipate that PureCycle Technologies, Inc. will post -1.01 EPS for the current year.

Institutional Investors Weigh In On PureCycle Technologies

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PCT. Larson Financial Group LLC boosted its holdings in PureCycle Technologies by 6,571.8% during the third quarter. Larson Financial Group LLC now owns 2,602 shares of the company's stock worth $34,000 after buying an additional 2,563 shares during the last quarter. Advisory Services Network LLC bought a new position in PureCycle Technologies during the 3rd quarter worth approximately $35,000. SHP Wealth Management acquired a new position in PureCycle Technologies during the fourth quarter valued at approximately $43,000. Farther Finance Advisors LLC increased its stake in PureCycle Technologies by 3,047.8% in the fourth quarter. Farther Finance Advisors LLC now owns 9,160 shares of the company's stock valued at $79,000 after purchasing an additional 8,869 shares in the last quarter. Finally, Independent Advisor Alliance acquired a new stake in PureCycle Technologies in the fourth quarter worth $87,000. Institutional investors own 63.01% of the company's stock.

PureCycle Technologies Company Profile

PureCycle Technologies, Inc operates as a recycling technology company focused on restoring waste polypropylene to a “virgin-like” state through a proprietary purification process licensed from Procter & Gamble. The company develops, owns and operates recycling facilities that convert used polypropylene feedstock—such as packaging and industrial plastics—into ultra‐pure recycled resin. This resin, known as Qualified Recycled Polymer (QRP), is designed to meet stringent quality specifications for applications in packaging, consumer goods and industrial products.

Headquartered in Orlando, Florida, PureCycle was established with technology development efforts dating back to licensing agreements in the mid-2010s and later spun off as a publicly traded entity in 2021.

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