PureCycle Technologies (NASDAQ:PCT) Shares Gap Up After Earnings Beat

Shares of PureCycle Technologies, Inc. (NASDAQ:PCT) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $7.62, but opened at $9.31. PureCycle Technologies shares last traded at $9.1610, with a volume of 1,775,789 shares traded.

The company reported ($0.21) EPS for the quarter, topping analysts’ consensus estimates of ($0.26) by $0.05. The business had revenue of $4.13 million for the quarter, compared to analysts’ expectations of $3.83 million. PureCycle Technologies had a negative net margin of 2,185.10% and a negative return on equity of 204.74%.

Analysts Set New Price Targets

A number of analysts have recently commented on PCT shares. Weiss Ratings restated a “sell (d-)” rating on shares of PureCycle Technologies in a research report on Thursday, January 22nd. Wall Street Zen upgraded PureCycle Technologies from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 2nd. Finally, Cantor Fitzgerald dropped their price target on 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 research 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 stock. According to MarketBeat.com, PureCycle Technologies currently has a consensus rating of “Moderate Buy” and an average price target of $13.00.

Institutional Investors Weigh In On PureCycle Technologies

A number of institutional investors have recently made changes to their positions in the stock. Hohimer Wealth Management LLC acquired a new position in PureCycle Technologies during the third quarter worth $6,452,000. SWS Partners lifted its stake in PureCycle Technologies by 31.9% during the fourth quarter. SWS Partners now owns 988,463 shares of the company’s stock worth $8,491,000 after purchasing an additional 238,947 shares in the last quarter. Fiscal Wisdom Wealth Management LLC acquired a new position in PureCycle Technologies during the third quarter worth $2,798,000. Principal Financial Group Inc. acquired a new position in PureCycle Technologies during the third quarter worth $890,000. Finally, First National Bank of Omaha acquired a new position in PureCycle Technologies during the third quarter worth $2,684,000. 63.01% of the stock is currently owned by institutional investors and hedge funds.

PureCycle Technologies Stock Performance

The firm has a market capitalization of $1.65 billion, a price-to-earnings ratio of -7.53 and a beta of 2.31. The company has a debt-to-equity ratio of 7.62, a current ratio of 2.26 and a quick ratio of 2.15. The firm has a 50 day moving average price of $6.29 and a 200-day moving average price of $8.61.

PureCycle Technologies Company Profile

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.