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.

Wall Street Analyst Weigh In

PCT has been the subject of a number of research reports. TD Cowen cut their target price on shares of PureCycle Technologies from $7.00 to $6.00 and set a “hold” rating for the company in a research report on Friday, May 8th. Weiss Ratings reissued a “sell (e+)” rating on shares of PureCycle Technologies in a research report on Friday, June 5th. Wall Street Zen lowered shares of PureCycle Technologies from a “sell” rating to a “strong sell” rating in a research report on Sunday, May 10th. Finally, Cantor Fitzgerald cut 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 report on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $12.00.

PureCycle Technologies Trading Down 14.5%

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

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

Institutional Investors Weigh In On PureCycle Technologies

A number of institutional investors have recently bought and sold shares of PCT. Rokos Capital Management LLP purchased a new stake in PureCycle Technologies in the first quarter valued at approximately $7,526,000. Simplify Asset Management Inc. grew its holdings in PureCycle Technologies by 227.4% in the fourth quarter. Simplify Asset Management Inc. now owns 1,933,564 shares of the company’s stock valued at $16,609,000 after purchasing an additional 1,342,955 shares during the period. HRT Financial LP grew its holdings in PureCycle Technologies by 208.2% in the fourth quarter. HRT Financial LP now owns 1,072,543 shares of the company’s stock valued at $9,213,000 after purchasing an additional 724,495 shares during the period. Indivisible Partners purchased a new stake in PureCycle Technologies in the fourth quarter valued at approximately $5,803,000. Finally, Millennium Management LLC purchased a new stake in PureCycle Technologies in the first quarter valued at approximately $3,770,000. 63.01% of the stock is currently owned by hedge funds and other institutional investors.

About PureCycle Technologies

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.