Purple Innovation (NASDAQ:PRPL) Stock Falls 7% – Here’s What Happened

Purple Innovation, Inc. (NASDAQ:PRPL) shares dropped 7% during trading on Tuesday. The company traded as low as $2.26 and last traded at $2.26. 42,842 shares changed hands during mid-day trading, a decline of 21% from the average daily volume of 54,233 shares. The stock had previously closed at $2.43.

Analyst Ratings Changes

Separately, Weiss Ratings restated a “sell (e+)” rating on shares of Purple Innovation in a research report on Friday, July 17th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Purple Innovation currently has an average rating of “Reduce” and a consensus price target of $16.25.

Purple Innovation Trading Down 2.7%

The stock has a market cap of $9.29 million, a PE ratio of -0.19 and a beta of 1.40. The company has a fifty day moving average of $5.22 and a 200-day moving average of $9.72.

Purple Innovation (NASDAQ:PRPL) last announced its earnings results on Monday, August 10th. The company reported ($1.52) EPS for the quarter, beating analysts’ consensus estimates of ($2.18) by $0.66. The firm had revenue of $98.27 million for the quarter, compared to analysts’ expectations of $104.39 million. As a group, research analysts anticipate that Purple Innovation, Inc. will post -6.34 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Purple Innovation

Hedge funds have recently added to or reduced their stakes in the business. Crumly & Associates Inc. increased its stake in Purple Innovation by 14.1% in the second quarter. Crumly & Associates Inc. now owns 333,263 shares of the company’s stock valued at $119,000 after purchasing an additional 41,200 shares during the last quarter. GSA Capital Partners LLP purchased a new stake in shares of Purple Innovation during the 2nd quarter worth approximately $26,000. Finally, BlackRock Inc. purchased a new stake in shares of Purple Innovation during the 2nd quarter worth approximately $373,000. 88.41% of the stock is currently owned by institutional investors and hedge funds.

About Purple Innovation

Purple Innovation, Inc develops and sells sleep and comfort products under the Purple brand. Its product portfolio includes mattresses, pillows, mattress toppers, cushions, bedding, adjustable bed bases and other accessories designed to support sleep and pressure relief.

The company’s products are distinguished by its proprietary Purple Grid, a flexible, gel-like polymer material designed to provide cushioning, airflow and support. Purple sells directly to consumers through its website and retail showrooms, as well as through selected third-party retail and distribution partners.

Purple was founded by brothers Tony and Terry Pearce, inventors with backgrounds in product development and materials engineering, and became a publicly traded company in 2018.