PureCycle Technologies (NASDAQ:PCT) Stock Falls 6.7% – Time to Sell?

PureCycle Technologies, Inc. (NASDAQ:PCT) shares fell 6.7% during mid-day trading on Monday. The stock traded as low as $4.66 and last traded at $4.6850. 2,931,408 shares changed hands during mid-day trading, a decline of 38% from the average session volume of 4,723,608 shares. The stock had previously closed at $5.02.

Wall Street Analyst Weigh In

PCT has been the topic of several research analyst reports. Cantor Fitzgerald dropped their target price on shares of PureCycle Technologies from $14.00 to $12.00 and set an “overweight” rating on the stock in a report on Friday, August 7th. Northland Securities set a $13.00 price target on shares of PureCycle Technologies in a research note on Friday, June 12th. Weiss Ratings reiterated a “sell (e+)” rating on shares of PureCycle Technologies in a report on Wednesday, September 2nd. Finally, Alembic Global Advisors set a $16.00 price objective on shares of PureCycle Technologies in a research report on Tuesday, June 16th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, PureCycle Technologies has a consensus rating of “Hold” and a consensus price target of $11.75.

PureCycle Technologies Trading Down 5.5%

The stock has a market cap of $953.27 million, a price-to-earnings ratio of -3.25 and a beta of 2.57. The business has a 50-day simple moving average of $6.36 and a two-hundred day simple moving average of $7.51. The company has a debt-to-equity ratio of 27.37, a quick ratio of 2.42 and a current ratio of 2.60.

PureCycle Technologies (NASDAQ:PCT) last released its earnings results on Thursday, August 6th. The company reported ($0.80) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.29) by ($0.51). The company had revenue of $4.51 million during the quarter, compared to analyst estimates of $6.11 million. PureCycle Technologies had a negative net margin of 1,618.84% and a negative return on equity of 612.39%. As a group, research analysts forecast that PureCycle Technologies, Inc. will post -0.9 EPS for the current year.

Insiders Place Their Bets

In other news, Director Fernando Musa bought 15,479 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were acquired at an average cost of $6.38 per share, for a total transaction of $98,756.02. Following the completion of the acquisition, the director owned 175,983 shares in the company, valued at approximately $1,122,771.54. This represents a 9.64% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 18.80% of the company’s stock.

Institutional Trading of PureCycle Technologies

Large investors have recently added to or reduced their stakes in the company. Envestnet Asset Management Inc. increased its stake in shares of PureCycle Technologies by 163.8% during the 2nd quarter. Envestnet Asset Management Inc. now owns 228,225 shares of the company’s stock worth $1,851,000 after purchasing an additional 141,707 shares during the last quarter. State Street Corp lifted its stake in PureCycle Technologies by 12.0% in the 2nd quarter. State Street Corp now owns 3,331,674 shares of the company’s stock valued at $27,020,000 after purchasing an additional 355,675 shares during the last quarter. The Manufacturers Life Insurance Company lifted its stake in PureCycle Technologies by 13.2% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 66,815 shares of the company’s stock valued at $542,000 after purchasing an additional 7,773 shares during the last quarter. Sequoia Financial Advisors LLC lifted its stake in PureCycle Technologies by 71.7% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 23,092 shares of the company’s stock valued at $187,000 after purchasing an additional 9,641 shares during the last quarter. Finally, WINTON GROUP Ltd bought a new position in PureCycle Technologies during the second quarter worth about $1,028,000. Institutional investors and hedge funds own 63.01% of the company’s stock.

PureCycle Technologies Company Profile

PureCycle Technologies, Inc is a chemical recycling company that develops and operates technology designed to convert waste polypropylene plastic into recycled polypropylene resin. Unlike conventional mechanical recycling, which can leave behind colors, odors and other contaminants, PureCycle’s proprietary purification process is intended to separate impurities from polypropylene and produce a recycled material with properties similar to virgin resin.

The company’s products are recycled polypropylene pellets and related materials that can be used in applications such as packaging, consumer products, automotive components and other molded plastic goods.