PureCycle Technologies (NASDAQ:PCT) Reaches New 12-Month Low After Earnings Miss

Shares of PureCycle Technologies, Inc. (NASDAQ:PCT) hit a new 52-week low on Thursday following a weaker than expected earnings announcement. The stock traded as low as $1.66 and last traded at $1.88, with a volume of 35,677,935 shares. The stock had previously closed at $2.79.

The company reported ($0.29) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.26) by ($0.03). PureCycle Technologies had a negative net margin of 1,370.89% and a negative return on equity of 912.74%. The company had revenue of $2.35 million during the quarter, compared to analyst estimates of $8.28 million.

Trending Headlines about PureCycle Technologies

Here are the key news stories impacting PureCycle Technologies this week:

• Positive Sentiment: PureCycle cited a demand pipeline of 45 million to 55 million pounds, which could support future sales if the company can deliver product and convert that pipeline into orders. Article: PureCycle outlines demand pipeline
• Neutral Sentiment: Cantor Fitzgerald lowered its price target from $12 to $8 but maintained an “overweight” rating, signaling continued optimism alongside a more cautious valuation. Article: Cantor Fitzgerald rating
• Neutral Sentiment: The company is pausing discretionary growth spending until Thailand financing closes. This may conserve cash in the near term, but makes expansion plans dependent on securing that financing. Article: Growth spending and Thailand financing
• Negative Sentiment: Two operational reliability issues at Ironton constrained third-quarter production, leaving PureCycle short of inventory for internal revenue targets. Revenue was $2.35 million, well below the $8.28 million consensus estimate. Article: PureCycle investigation notice
• Negative Sentiment: PureCycle reported a quarterly loss of $0.29 per share, worse than estimates of a $0.21 loss in one report and a $0.26 loss in another. The loss narrowed from $0.44 a year earlier, but the miss and production problems remain near-term concerns. Article: Q3 loss and revenue estimates

Analyst Upgrades and Downgrades

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

Insider Buying and Selling

In other news, Director Fernando Musa acquired 15,479 shares of the stock in a transaction dated Friday, September 4th. The shares were bought at an average cost of $6.38 per share, for a total transaction of $98,756.02. Following the purchase, the director directly owned 175,983 shares of the company’s stock, valued at approximately $1,122,771.54. This trade represents a 9.64% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 18.80% of the company’s stock.

Hedge Funds Weigh In On PureCycle Technologies

Hedge funds have recently bought and sold shares of the business. Cassaday & Co Wealth Management LLC acquired a new stake in PureCycle Technologies during the first quarter worth approximately $33,000. Chicago Partners Investment Group LLC bought a new position in PureCycle Technologies during the 3rd quarter worth $36,000. Avidian Wealth Enterprises LLC acquired a new position in PureCycle Technologies in the 3rd quarter valued at $44,000. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors acquired a new position in PureCycle Technologies in the 3rd quarter valued at $45,000. Finally, Sigma Planning Corp acquired a new position in PureCycle Technologies in the 3rd quarter valued at $48,000. 63.01% of the stock is owned by institutional investors.

PureCycle Technologies Stock Down 32.6%

The business has a 50-day moving average price of $4.57 and a two-hundred day moving average price of $7.21. The company has a current ratio of 2.60, a quick ratio of 2.42 and a debt-to-equity ratio of 27.37.

PureCycle Technologies Company Profile

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.