Purple Innovation, Inc. (NASDAQ:PRPL) Sees Significant Decrease in Short Interest

Purple Innovation, Inc. (NASDAQ:PRPL) was the target of a significant drop in short interest in the month of July. As of July 31st, there was short interest totaling 80,409 shares, a drop of 95.6% from the July 15th total of 1,846,432 shares. Approximately 4.0% of the shares of the stock are sold short. Based on an average trading volume of 32,364 shares, the days-to-cover ratio is currently 2.5 days.

Purple Innovation Trading Down 20.3%

Shares of NASDAQ:PRPL traded down $1.85 during midday trading on Tuesday, reaching $7.25. 74,269 shares of the company were exchanged, compared to its average volume of 31,371. The stock has a market cap of $31.60 million, a PE ratio of -0.65 and a beta of 1.46. The business’s fifty day moving average is $8.94 and its two-hundred day moving average is $13.11. Purple Innovation has a one year low of $6.12 and a one year high of $31.50.

Purple Innovation (NASDAQ:PRPL) last announced its quarterly earnings results on Monday, August 10th. The company reported ($1.52) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($2.18) by $0.66. The company had revenue of $98.27 million during the quarter, compared to the consensus estimate of $104.39 million. As a group, sell-side analysts expect that Purple Innovation will post -6.63 EPS for the current year.

Institutional Investors Weigh In On Purple Innovation

Large investors have recently made changes to their positions in the company. Bank of America Corp DE boosted its stake in Purple Innovation by 45.1% during the fourth quarter. Bank of America Corp DE now owns 55,984 shares of the company’s stock valued at $44,000 after buying an additional 17,406 shares during the last quarter. AQR Capital Management LLC bought a new stake in Purple Innovation in the 1st quarter worth approximately $28,000. XTX Topco Ltd bought a new stake in Purple Innovation in the 2nd quarter worth approximately $30,000. Marshall Wace LLP purchased a new stake in shares of Purple Innovation during the 2nd quarter worth approximately $128,000. Finally, Qube Research & Technologies Ltd purchased a new stake in shares of Purple Innovation during the 2nd quarter worth approximately $63,000. 88.41% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research firms have recently weighed in on PRPL. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Purple Innovation in a research note on Friday, July 17th. Wall Street Zen cut Purple Innovation from a “hold” rating to a “strong sell” rating in a research report on Saturday, May 9th. UBS Group decreased their target price on Purple Innovation from $21.25 to $16.25 and set a “neutral” rating on the stock in a research note on Wednesday, April 29th. Finally, KeyCorp cut Purple Innovation from an “overweight” rating to a “sector weight” rating in a report on Tuesday, April 28th. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Purple Innovation currently has a consensus rating of “Reduce” and an average target price of $16.25.

Key Stories Impacting Purple Innovation

Here are the key news stories impacting Purple Innovation this week:

• Positive Sentiment: Adjusted EBITDA improved by $4.4 million year over year to $2.1 million, while the company’s GAAP net loss narrowed to $3.2 million. Purple also reported an EPS loss of $1.52, substantially better than analysts’ expected $2.18 loss. Purple Innovation Reports Second Quarter 2026 Results
• Positive Sentiment: Showroom revenue increased 16.6% and comparable revenue rose 18%, indicating progress in Purple’s retail and direct sales initiatives. The company also regained compliance with Nasdaq’s minimum bid-price requirement. Purple Innovation Reports Second Quarter 2026 Results
• Positive Sentiment: Management forecast full-year 2026 adjusted EBITDA of $20 million to $25 million, offering investors a profitability target despite challenging industry conditions. Purple forecasts 2026 adjusted EBITDA

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.