Purple Innovation (NASDAQ:PRPL) Shares Down 7% – What’s Next?

Purple Innovation, Inc. (NASDAQ:PRPL)’s share price traded down 7% on Tuesday. The stock traded as low as $2.26 and last traded at $2.26. 42,842 shares were traded 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.

Wall Street Analyst Weigh In

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 issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Reduce” and an average target price of $16.25.

Purple Innovation Trading Down 7.0%

The firm has a 50-day moving average of $5.31 and a two-hundred day moving average of $9.83. The firm has a market cap of $9.85 million, a price-to-earnings ratio of -0.20 and a beta of 1.40.

Purple Innovation (NASDAQ:PRPL) last posted its quarterly earnings results on Monday, August 10th. The company reported ($1.52) earnings per share (EPS) for the quarter, topping the consensus estimate of ($2.18) by $0.66. The company had revenue of $98.27 million during the quarter, compared to analyst estimates of $104.39 million. As a group, equities analysts anticipate that Purple Innovation, Inc. will post -6.34 EPS for the current year.

Hedge Funds Weigh In On Purple Innovation

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

Purple Innovation Company Profile

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.