PureCycle Technologies (NASDAQ:PCT) Trading Down 7.9% - Here's What Happened

Key Points

• PureCycle Technologies shares fell 7.9% on Thursday, trading as low as $6.56 and ending near $6.49, with volume far below average.
• Analyst sentiment remains mixed, but recent moves were negative: TD Cowen cut its price target to $6.00 and several other firms maintained bearish ratings. The stock still carries a consensus Moderate Buy and an average target price of $12.25.
• The company recently beat quarterly earnings and revenue expectations, but PureCycle still reported negative profitability metrics and analysts expect a loss for the full year.

PureCycle Technologies, Inc. (NASDAQ:PCT - Get Free Report)'s stock price traded down 7.9% during mid-day trading on Thursday . The company traded as low as $6.56 and last traded at $6.4920. 395,274 shares traded hands during trading, a decline of 92% from the average daily volume of 4,953,840 shares. The stock had previously closed at $7.05.

Wall Street Analyst Weigh In

PCT has been the subject of several analyst reports. TD Cowen cut their price target on PureCycle Technologies from $7.00 to $6.00 and set a "hold" rating for the company in a research note on Friday, May 8th. Alembic Global Advisors set a $16.00 price target on shares of PureCycle Technologies in a report on Tuesday, June 16th. Weiss Ratings reiterated a "sell (e+)" rating on shares of PureCycle Technologies in a report on Friday, June 5th. Northland Securities set a $13.00 price objective on PureCycle Technologies in a research note on Friday, June 12th. Finally, Wall Street Zen lowered PureCycle Technologies from a "sell" rating to a "strong sell" rating in a research note on Sunday, May 10th. One research 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 assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $12.25.

PureCycle Technologies Trading Down 7.9%

The company has a debt-to-equity ratio of 47.59, a quick ratio of 1.57 and a current ratio of 1.71. The company has a 50 day simple moving average of $9.80 and a two-hundred day simple moving average of $8.58. The company has a market cap of $1.17 billion, a PE ratio of -4.42 and a beta of 2.50.

PureCycle Technologies (NASDAQ:PCT - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported ($0.21) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.26) by $0.05. The company had revenue of $4.13 million during the quarter, compared to the consensus estimate of $3.83 million. PureCycle Technologies had a negative return on equity of 393.01% and a negative net margin of 2,062.36%. Sell-side analysts forecast that PureCycle Technologies, Inc. will post -1 EPS for the current year.

Institutional Investors Weigh In On PureCycle Technologies

Several institutional investors and hedge funds have recently bought and sold shares of the business. Appian Way Asset Management LP boosted its stake in shares of PureCycle Technologies by 1.4% in the 3rd quarter. Appian Way Asset Management LP now owns 4,315,655 shares of the company's stock valued at $56,751,000 after purchasing an additional 59,676 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of PureCycle Technologies by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 3,365,871 shares of the company's stock worth $28,918,000 after buying an additional 15,536 shares during the last quarter. Simplify Asset Management Inc. boosted its holdings in PureCycle Technologies by 227.4% during the fourth quarter. Simplify Asset Management Inc. now owns 1,933,564 shares of the company's stock worth $16,609,000 after buying an additional 1,342,955 shares during the last quarter. Royal Bank of Canada raised its holdings in PureCycle Technologies by 41.8% in the fourth quarter. Royal Bank of Canada now owns 1,671,756 shares of the company's stock worth $14,361,000 after purchasing an additional 492,975 shares during the period. Finally, Rokos Capital Management LLP bought a new position in shares of PureCycle Technologies during the 1st quarter valued at about $7,526,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.