Healthy Upside Potential: PureCycle Technologies Inc. (PCT)

PureCycle Technologies Inc. (NASDAQ: PCT) stock jumped 9.03% on Friday to $9.30 against a previous-day closing price of $8.53. With 1.59 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.13 million shares. During the session, the Pollution & Treatment Controls company that operates in wider Industrials sector, reached to the highest price of $9.36 whereas the lowest price it dropped to was $8.48. The 52-week range on PCT shows that it touched its highest point at $10.95 and its lowest point at $4.94 during that stretch. It currently has a 1-year price target of $15.86.

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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 PCT was up-trending over the past week, with a rise of 20.16%, but this was up by 53.21% over a month. Three-month performance surged to 16.69% while six-month performance rose 28.99%. The stock gained 29.71% in the past year, while it has gained 37.57% so far this year. A look at the trailing 12-month EPS for PCT yields -0.65 with Next year EPS estimates of -0.62. For the next quarter, that number is -0.14. This implies an EPS growth rate of -570.40% for this year and 1.60% for next year.

Float and Shares Shorts:

At present, 163.51 million PCT shares are outstanding with a float of 109.02 million shares on hand for trading. On Oct 13, 2022, short shares totaled 18.85 million, which was 11.53% higher than short shares on Sep 14, 2022. In addition to Mr. Dustin Olson as the firm’s Chief Exec. Officer, Mr. Lawrence C. Somma serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 60.55% of PCT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.95% of PCT, in contrast to 15.74% held by mutual funds. Shares owned by individuals account for 14.51%. As the largest shareholder in PCT with 17.85% of the stake, Sylebra Capital Ltd. holds 29,193,256 shares worth 29,193,256. A second-largest stockholder of PCT, The Vanguard Group, Inc., holds 9,920,066 shares, controlling over 6.07% of the firm’s shares. Samlyn Capital LLC is the third largest shareholder in PCT, holding 8,685,600 shares or 5.31% stake. With a 2.00% stake in PCT, the BNP Paribas Funds – Energy Transi is the largest stakeholder. A total of 3,266,234 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.95% of PCT stock, is the second-largest Mutual Fund holder. It holds 3,186,067 shares valued at 21.54 million. Vanguard Small Cap Index Fund holds 1.68% of the stake in PCT, owning 2,738,423 shares worth 18.51 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PCT since 6 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PCT analysts setting a high price target of $30.00 and a low target of $11.00, the average target price over the next 12 months is $16.17. Based on these targets, PCT could surge 222.58% to reach the target high and rise by 18.28% to reach the target low. Reaching the average price target will result in a growth of 73.87% 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. PCT will report FY 2022 earnings on 03/06/2024. Analysts have provided yearly estimates in a range of -$0.53 being high and -$0.65 being low. For PCT, this leads to a yearly average estimate of -$0.62. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. PureCycle Technologies Inc. surprised analysts by -$0.10 when it reported -$0.21 EPS against a consensus estimate of -$0.11. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is -$0.13 and the low estimate is -$0.15. The average estimate for the next quarter is thus -$0.14.

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