Purple Innovation Inc. (NASDAQ: PRPL) stock fell -7.80% on Friday to $5.08 against a previous-day closing price of $5.51. With 0.54 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.67 million shares. During the session, the Furnishings Fixtures & Appliances company that operates in wider Consumer Cyclical sector, reached to the highest price of $5.56 whereas the lowest price it dropped to was $5.02. The 52-week range on PRPL shows that it touched its highest point at $9.54 and its lowest point at $2.65 during that stretch. It currently has a 1-year price target of $5.78. Beta for the stock currently stands at 1.55.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PRPL was down-trending over the past week, with a drop of -13.90%, but this was up by 7.40% over a month. Three-month performance surged to 38.04% while six-month performance rose 30.59%. The stock lost -45.84% in the past year, while it has gained 6.05% so far this year. A look at the trailing 12-month EPS for PRPL yields -0.60 with Next year EPS estimates of -0.05. For the next quarter, that number is -0.03. This implies an EPS growth rate of 101.00% for this year and 83.90% for next year. EPS is expected to grow by 14.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 20.10%.
Float and Shares Shorts:
At present, 91.83 million PRPL shares are outstanding with a float of 90.16 million shares on hand for trading. On Oct 13, 2022, short shares totaled 6.84 million, which was 7.54% higher than short shares on Sep 14, 2022. In addition to Mr. Robert T. DeMartini as the firm’s CEO & Director, Mr. Bennett L. Nussbaum serves as its Interim CFO & Treasurer.
Through their ownership of 114.93% of PRPL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 71.83% of PRPL, in contrast to 59.03% held by mutual funds. Shares owned by individuals account for 20.48%. As the largest shareholder in PRPL with 44.71% of the stake, Coliseum Capital Management LLC holds 40,854,130 shares worth 40,854,130. A second-largest stockholder of PRPL, Fidelity Management & Research Co, holds 10,936,516 shares, controlling over 11.97% of the firm’s shares. No Street GP LP is the third largest shareholder in PRPL, holding 4,700,000 shares or 5.14% stake. With a 3.69% stake in PRPL, the Fidelity Growth Company Fund is the largest stakeholder. A total of 3,370,483 shares are owned by the mutual fund manager. The Fidelity Series Growth Company Fu, which owns about 1.62% of PRPL stock, is the second-largest Mutual Fund holder. It holds 1,480,187 shares valued at 7.09 million. Vanguard Total Stock Market Index holds 1.62% of the stake in PRPL, owning 1,478,691 shares worth 7.08 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PRPL since 9 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PRPL analysts setting a high price target of $8.00 and a low target of $4.00, the average target price over the next 12 months is $5.89. Based on these targets, PRPL could surge 57.48% to reach the target high and fall by -21.26% to reach the target low. Reaching the average price target will result in a growth of 15.94% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. PRPL will report FY 2022 earnings on 02/28/2024. Analysts have provided yearly estimates in a range of -$0.21 being high and -$0.33 being low. For PRPL, this leads to a yearly average estimate of -$0.30. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Purple Innovation Inc. surprised analysts by $0.10 when it reported $0.03 EPS against a consensus estimate of -$0.07. The surprise factor in the prior quarter was -$0.04. The average estimate for the next quarter is thus -$0.03.
Summary of Insider Activity:
Insiders traded PRPL stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 2,177 shares were bought while 0 shares were sold. The number of buy transactions has increased to 46 while that of sell transactions has risen to 8 over the past year. The total number of shares bought during that period was 24,297,081 while 2,065 shares were sold.