Purple Innovation (NASDAQ:PRPL) Reaches New 12-Month Low - Time to Sell?

Key Points

• Purple Innovation shares hit a new 52-week low in Monday trading, falling to as low as $6.91 before closing slightly higher. The stock was down about 7.1% on the day.
• Wall Street sentiment remains weak, with analysts including UBS, KeyCorp, and Wall Street Zen cutting ratings or price targets. The current consensus is a “Reduce” rating with a target price of $0.65.
• The company’s latest quarterly results were mixed: it matched EPS estimates at -$0.13 but missed revenue expectations at $95.73 million versus $100.92 million. Insiders also showed confidence, with the CFO buying 60,000 shares in early May.

Purple Innovation, Inc. (NASDAQ:PRPL - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $6.91 and last traded at $6.9050, with a volume of 112 shares changing hands. The stock had previously closed at $7.2425.

Analyst Ratings Changes

Several equities research analysts have commented on PRPL shares. UBS Group dropped their price objective on shares of Purple Innovation from $0.85 to $0.65 and set a "neutral" rating on the stock in a research note on Wednesday, April 29th. Wall Street Zen lowered shares of Purple Innovation from a "hold" rating to a "strong sell" rating in a report on Saturday, May 9th. KeyCorp cut shares of Purple Innovation from an "overweight" rating to a "sector weight" rating in a research note on Tuesday, April 28th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Purple Innovation in a report on Tuesday, April 21st. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus target price of $0.65.

Purple Innovation Trading Down 7.1%

The stock has a 50-day moving average price of $0.39 and a 200 day moving average price of $0.57. The stock has a market capitalization of $732.33 million, a price-to-earnings ratio of -11.66 and a beta of 1.46.

Purple Innovation (NASDAQ:PRPL - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The company reported ($0.13) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.13). The business had revenue of $95.73 million during the quarter, compared to analyst estimates of $100.92 million. Equities research analysts anticipate that Purple Innovation, Inc. will post -0.28 earnings per share for the current year.

Insider Buying and Selling at Purple Innovation

In other Purple Innovation news, CFO Robert Gerard Lucian bought 60,000 shares of Purple Innovation stock in a transaction dated Monday, May 4th. The stock was acquired at an average cost of $0.49 per share, with a total value of $29,400.00. Following the purchase, the chief financial officer directly owned 60,000 shares in the company, valued at $29,400. This represents a ∞ increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. 54.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Purple Innovation

A number of institutional investors have recently added to or reduced their stakes in the stock. Jacobs Levy Equity Management Inc. purchased a new stake in shares of Purple Innovation during the third quarter worth approximately $757,000. Wasatch Advisors LP raised its stake in Purple Innovation by 16.1% in the 2nd quarter. Wasatch Advisors LP now owns 4,627,934 shares of the company's stock valued at $3,375,000 after purchasing an additional 641,697 shares during the last quarter. Jane Street Group LLC purchased a new position in Purple Innovation in the 2nd quarter valued at $253,000. Marshall Wace LLP purchased a new position in Purple Innovation in the 2nd quarter valued at $128,000. Finally, Squarepoint Ops LLC purchased a new position in Purple Innovation in the 3rd quarter valued at $135,000. Institutional investors and hedge funds own 88.41% of the company's stock.

Purple Innovation Company Profile

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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