Purple Innovation (NASDAQ:PRPL) Price Target Cut to $0.65 by Analysts at UBS Group

Key Points

• UBS cut its price target on Purple Innovation from $0.85 to $0.65 and maintained a "neutral" rating, matching the consensus $0.65 target that implies roughly a 32.65% upside from the current price.
• Shares fell about 8.3% to $0.49 on heavy volume after the quarter in which EPS equaled the estimate at ($0.13) but revenue missed materially ($95.7M vs. $120.7M expected).
• Analyst sentiment is weak (two Holds, one Sell; consensus rating "Reduce"), the company has a market cap near $53M, and institutional investors own about 88% of the stock.

Purple Innovation (NASDAQ:PRPL - Get Free Report) had its price target reduced by research analysts at UBS Group from $0.85 to $0.65 in a research note issued on Wednesday,Benzinga reports. The firm currently has a "neutral" rating on the stock. UBS Group's target price would indicate a potential upside of 32.65% from the stock's current price.

Several other research analysts also recently commented on PRPL. Wall Street Zen raised Purple Innovation to a "hold" rating in a research note on Saturday, April 11th. KeyCorp downgraded Purple Innovation from an "overweight" rating to a "sector weight" rating in a research note on Tuesday. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Purple Innovation in a report on Tuesday, April 21st. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Purple Innovation presently has an average rating of "Reduce" and a consensus price target of $0.65.

Purple Innovation Trading Down 8.3%

NASDAQ PRPL traded down $0.04 during trading on Wednesday, hitting $0.49. 602,670 shares of the company's stock were exchanged, compared to its average volume of 301,392. The company has a market cap of $53.31 million, a PE ratio of -1.02 and a beta of 1.83. Purple Innovation has a fifty-two week low of $0.48 and a fifty-two week high of $1.26. The stock's 50 day moving average price is $0.66 and its two-hundred day moving average price is $0.72.

Purple Innovation (NASDAQ:PRPL - Get Free Report) last issued its earnings results on Tuesday, April 28th. The company reported ($0.13) EPS for the quarter, hitting the consensus estimate of ($0.13). The business had revenue of $95.73 million for the quarter, compared to analyst estimates of $120.73 million. Analysts forecast that Purple Innovation will post -0.24 earnings per share for the current fiscal year.

Institutional Trading of Purple Innovation

Several institutional investors have recently added to or reduced their stakes in PRPL. Bank of America Corp DE boosted its holdings in shares of Purple Innovation by 45.1% during the 4th quarter. Bank of America Corp DE now owns 55,984 shares of the company's stock worth $44,000 after buying an additional 17,406 shares in the last quarter. Jane Street Group LLC boosted its holdings in shares of Purple Innovation by 14.6% during the 4th quarter. Jane Street Group LLC now owns 150,197 shares of the company's stock worth $104,000 after buying an additional 19,156 shares in the last quarter. Crumly & Associates Inc. boosted its holdings in shares of Purple Innovation by 8.2% during the 4th quarter. Crumly & Associates Inc. now owns 275,613 shares of the company's stock worth $190,000 after buying an additional 21,000 shares in the last quarter. State Street Corp boosted its holdings in shares of Purple Innovation by 8.8% during the 4th quarter. State Street Corp now owns 259,838 shares of the company's stock worth $179,000 after buying an additional 21,100 shares in the last quarter. Finally, Caprock Group LLC bought a new position in shares of Purple Innovation during the 3rd quarter worth approximately $26,000. 88.41% of the stock is currently owned by institutional investors.

About Purple Innovation

Purple Innovation, Inc is a consumer products company specializing in the design, development and manufacture of comfort technology for the sleep and home furnishings markets. Best known for its proprietary Hyper-Elastic Polymer “Grid” technology, the company engineers mattresses, pillows and cushions that aim to combine pressure relief, support and temperature neutrality. Purple offers an array of sleep products alongside related lifestyle and wellness solutions.

The company's product portfolio includes mattress models in various sizes and thicknesses, adjustable bed frames, pillows, sheets and mattress protectors, as well as seat cushions and pet beds.

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