PureCycle Technologies (NASDAQ:PCT) Shares Down 9% – Here’s Why

PureCycle Technologies, Inc. (NASDAQ:PCT)’s stock price dropped 9% during mid-day trading on Tuesday . The stock traded as low as $10.67 and last traded at $10.9410. Approximately 4,701,853 shares traded hands during trading, an increase of 3% from the average daily volume of 4,582,625 shares. The stock had previously closed at $12.02.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on PCT. TD Cowen decreased their price objective on PureCycle Technologies from $7.00 to $6.00 and set a “hold” rating for the company in a report on Friday, May 8th. Wall Street Zen downgraded PureCycle Technologies from a “sell” rating to a “strong sell” rating in a report on Sunday, May 10th. Cantor Fitzgerald decreased their price objective on PureCycle Technologies from $16.00 to $14.00 and set an “overweight” rating for the company in a report on Friday, February 27th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of PureCycle Technologies in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $12.00.

PureCycle Technologies Stock Performance

The company has a debt-to-equity ratio of 47.59, a quick ratio of 1.57 and a current ratio of 1.71. The stock has a fifty day simple moving average of $8.88 and a two-hundred day simple moving average of $8.71. The stock has a market capitalization of $1.95 billion, a price-to-earnings ratio of -7.34 and a beta of 2.48.

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

Institutional Trading of PureCycle Technologies

A number of large investors have recently bought and sold shares of PCT. Rokos Capital Management LLP acquired a new stake in PureCycle Technologies during the 1st quarter worth about $7,526,000. Simplify Asset Management Inc. grew its holdings in PureCycle Technologies by 227.4% during the 4th quarter. Simplify Asset Management Inc. now owns 1,933,564 shares of the company’s stock worth $16,609,000 after acquiring an additional 1,342,955 shares during the period. HRT Financial LP boosted its position in shares of PureCycle Technologies by 208.2% during the 4th quarter. HRT Financial LP now owns 1,072,543 shares of the company’s stock worth $9,213,000 after purchasing an additional 724,495 shares in the last quarter. Indivisible Partners bought a new position in shares of PureCycle Technologies during the 4th quarter worth about $5,803,000. Finally, Millennium Management LLC bought a new position in shares of PureCycle Technologies during the 1st quarter worth about $3,770,000. 63.01% of the stock is currently owned by institutional investors and hedge funds.

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.