PureCycle Technologies (NASDAQ:PCT) Stock Sees Heavy Call Option Buying

PureCycle Technologies, Inc. (NASDAQ:PCT) saw some unusual options trading activity on Monday. Investors acquired 42,599 call options on the company. This represents an increase of approximately 197% compared to the typical volume of 14,362 call options.

PureCycle Technologies Stock Up 24.0%

Shares of PCT stock traded up $0.40 during mid-day trading on Monday, hitting $2.06. The stock had a trading volume of 5,719,779 shares, compared to its average volume of 5,217,501. PureCycle Technologies has a 12-month low of $1.59 and a 12-month high of $14.20. The company has a debt-to-equity ratio of 21.30, a current ratio of 1.60 and a quick ratio of 1.45. The firm’s 50-day moving average is $4.37 and its two-hundred day moving average is $7.12. The firm has a market capitalization of $414.87 million, a P/E ratio of -1.77 and a beta of 2.74.

PureCycle Technologies (NASDAQ:PCT) last announced its quarterly earnings results on Wednesday, November 4th. The company reported ($0.29) EPS for the quarter, missing the consensus estimate of ($0.26) by ($0.03). The firm had revenue of $2.35 million for the quarter, compared to analysts’ expectations of $8.28 million. PureCycle Technologies had a negative net margin of 1,370.89% and a negative return on equity of 959.19%. On average, analysts predict that PureCycle Technologies will post -0.64 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. Cantor Fitzgerald reduced their target price on shares of PureCycle Technologies from $12.00 to $8.00 and set an “overweight” rating on the stock in a research report on Thursday. Weiss Ratings reiterated a “sell (e+)” rating on shares of PureCycle Technologies in a report on Wednesday, September 2nd. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $10.75.

Insiders Place Their Bets

In related news, Director Fernando Musa acquired 15,479 shares of the stock in a transaction on Friday, September 4th. The stock was bought at an average cost of $6.38 per share, with a total value of $98,756.02. Following the transaction, the director directly owned 175,983 shares in the company, valued at approximately $1,122,771.54. This represents a 9.64% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. 18.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Rokos Capital Management LLP bought a new stake in shares of PureCycle Technologies in the 1st quarter valued at about $7,526,000. SWS Partners purchased a new stake in shares of PureCycle Technologies in the 2nd quarter worth approximately $11,637,000. Cibc World Market Inc. purchased a new stake in shares of PureCycle Technologies in the 2nd quarter worth approximately $9,201,000. NewEdge Advisors LLC boosted its stake in shares of PureCycle Technologies by 600.9% during the second quarter. NewEdge Advisors LLC now owns 1,186,811 shares of the company’s stock valued at $9,625,000 after purchasing an additional 1,017,488 shares in the last quarter. Finally, Bank of America Corp DE bought a new position in shares of PureCycle Technologies during the second quarter valued at approximately $5,095,000. 63.01% of the stock is currently owned by institutional investors.

About PureCycle Technologies

PureCycle Technologies, Inc (NASDAQ:PCT) is a recycling technology company focused on converting waste polypropylene (PP) into recycled resin with properties designed to be comparable to virgin polypropylene. Its technology is intended to remove color, odor and other contaminants from used plastic, expanding the potential for recycled PP in applications that traditionally rely on virgin materials.

The company processes post-consumer and post-industrial polypropylene feedstock into purified recycled polypropylene products.