PureCycle Technologies (NASDAQ:PCT) Shares Gap Down – Should You Sell?

PureCycle Technologies, Inc. (NASDAQ:PCT) shares gapped down before the market opened on Thursday . The stock had previously closed at $9.89, but opened at $8.25. PureCycle Technologies shares last traded at $8.3390, with a volume of 9,975,420 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on PCT shares. Wall Street Zen downgraded shares of PureCycle Technologies from a “sell” rating to a “strong sell” rating in a research note on Sunday, May 10th. Cantor Fitzgerald decreased 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 note on Friday, February 27th. TD Cowen decreased their price objective on shares of PureCycle Technologies from $7.00 to $6.00 and set a “hold” rating for the company in a research note on Friday, May 8th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of PureCycle Technologies in a research note on Friday, June 5th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $12.00.

PureCycle Technologies Stock Down 14.5%

The firm has a market capitalization of $1.53 billion, a PE ratio of -5.74 and a beta of 2.48. The firm’s 50 day moving average price is $9.09 and its two-hundred day moving average price is $8.74. The company has a quick ratio of 1.57, a current ratio of 1.71 and a debt-to-equity ratio of 47.59.

PureCycle Technologies (NASDAQ:PCT) last announced its earnings results on Wednesday, May 6th. The company reported ($0.21) earnings per share for the quarter, beating the consensus estimate of ($0.26) by $0.05. The business had revenue of $4.13 million during the quarter, compared to the consensus estimate of $3.83 million. PureCycle Technologies had a negative net margin of 2,062.36% and a negative return on equity of 393.01%. As a group, research analysts forecast that PureCycle Technologies, Inc. will post -0.99 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Larson Financial Group LLC raised its holdings in PureCycle Technologies by 6,571.8% in the third quarter. Larson Financial Group LLC now owns 2,602 shares of the company’s stock valued at $34,000 after acquiring an additional 2,563 shares in the last quarter. Advisory Services Network LLC acquired a new stake in PureCycle Technologies in the third quarter valued at $35,000. SHP Wealth Management acquired a new stake in PureCycle Technologies in the fourth quarter valued at $43,000. Cassaday & Co Wealth Management LLC acquired a new stake in PureCycle Technologies in the first quarter valued at $33,000. Finally, Farther Finance Advisors LLC raised its holdings 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 acquiring an additional 8,869 shares in the last quarter. 63.01% of the stock is currently owned by hedge funds and other institutional investors.

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.