Purple Innovation Inc. (NASDAQ: PRPL) stock fell -1.78% on Monday to $2.21 against a previous-day closing price of $2.25. With 0.8 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.84 million shares. During the session, the Furnishings Fixtures & Appliances company that operates in wider Consumer Cyclical sector, reached to the highest price of $2.2600 whereas the lowest price it dropped to was $2.1900. The 52-week range on PRPL shows that it touched its highest point at $6.76 and its lowest point at $2.02 during that stretch. It currently has a 1-year price target of $4.46. Beta for the stock currently stands at 1.58.
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 up-trending over the past week, with a rise of 0.45%, but this was down by -5.15% over a month. Three-month performance dropped to -22.18% while six-month performance fell -16.57%. The stock lost -23.24% in the past year, while it has lost -53.85% so far this year. A look at the trailing 12-month EPS for PRPL yields -1.33 with Next year EPS estimates of -0.10. For the next quarter, that number is -0.03. This implies an EPS growth rate of -2.70% for this year and 73.70% for next year.
Float and Shares Shorts:
At present, 105.08 million PRPL shares are outstanding with a float of 101.35 million shares on hand for trading. On Aug 30, 2023, short shares totaled 6.3 million, which was 5.96% higher than short shares on Jul 30, 2023. 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 93.26% of PRPL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 75.10% of PRPL, in contrast to 61.65% held by mutual funds. Shares owned by individuals account for 18.22%. As the largest shareholder in PRPL with 44.49% of the stake, Coliseum Capital Management LLC holds 46,855,291 shares worth 46,855,291. A second-largest stockholder of PRPL, Fidelity Management & Research Co, holds 11,303,170 shares, controlling over 10.73% of the firm’s shares. No Street GP LP is the third largest shareholder in PRPL, holding 6,100,000 shares or 5.79% stake. With a 3.46% stake in PRPL, the Fidelity Growth Company Fund is the largest stakeholder. A total of 3,648,406 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 1.83% of PRPL stock, is the second-largest Mutual Fund holder. It holds 1,927,691 shares valued at 4.18 million. Wasatch Micro Cap Fund holds 1.55% of the stake in PRPL, owning 1,636,593 shares worth 3.55 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, PRPL reported revenue of $144.11M and operating income of -$12.09M. The EBITDA in the recently reported quarter was -$8.48M and diluted EPS was -$0.10.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PRPL since 0 analysts follow the stock currently. 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 $2.75, the average target price over the next 12 months is $4.79. Based on these targets, PRPL could surge 261.99% to reach the target high and rise by 24.43% to reach the target low. Reaching the average price target will result in a growth of 116.74% 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.
Summary of Insider Activity:
Insiders traded PRPL stock several times over the past three months with 8 Buys and 0 Sells. In these transactions, 266,826 shares were bought while 0 shares were sold. The number of buy transactions has increased to 27 while that of sell transactions has risen to 13 over the past year. The total number of shares bought during that period was 6,725,895 while 477,110 shares were sold.