Is Li-Cycle Holdings Corp (LICY) positioned for future growth?

Li-Cycle Holdings Corp (NYSE: LICY) stock fell -2.93% on Friday to $0.63 against a previous-day closing price of $0.65. With 7.75 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.93 million shares. During the session, the Waste Management company that operates in wider Industrials sector, reached to the highest price of $0.6780 whereas the lowest price it dropped to was $0.6111. The 52-week range on LICY shows that it touched its highest point at $6.58 and its lowest point at $0.50 during that stretch. It currently has a 1-year price target of $1.08. Beta for the stock currently stands at 1.11.

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 LICY was down-trending over the past week, with a drop of -59.81%, but this was down by -73.55% over a month. Three-month performance dropped to -85.62% while six-month performance fell -86.19%. The stock lost -89.59% in the past year, while it has lost -86.83% so far this year. A look at the trailing 12-month EPS for LICY yields -1.35 with Next year EPS estimates of 0.29. For the next quarter, that number is -0.09. This implies an EPS growth rate of 107.00% for this year and 1258.57% for next year.

Float and Shares Shorts:

At present, 175.96 million LICY shares are outstanding with a float of 121.50 million shares on hand for trading. On Oct 30, 2023, short shares totaled 14.15 million, which was 7.94% higher than short shares on Sep 28, 2023. In addition to Mr. Tim Johnston C.F.A. as the firm’s Co-Founder, Executive Chairman & Interim Regional President of EMEA, Mr. Ajay Kochhar serves as its Co-Founder, President, CEO & Executive Director.

Institutional Ownership:

Through their ownership of 47.13% of LICY’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 22.05% of LICY, in contrast to 16.68% held by mutual funds. As the largest shareholder in LICY with 6.21% of the stake, Covalis Capital LLP holds 11,057,262 shares worth 11,057,262. A second-largest stockholder of LICY, BNP Paribas Asset Management UK L, holds 7,428,270 shares, controlling over 4.17% of the firm’s shares. Grantham, Mayo, Van Otterloo & Co is the third largest shareholder in LICY, holding 6,622,647 shares or 3.72% stake. With a 5.30% stake in LICY, the BNP Paribas Funds – Energy Transi is the largest stakeholder. A total of 9,433,985 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 1.79% of LICY stock, is the second-largest Mutual Fund holder. It holds 3,194,205 shares valued at 4.28 million. PRIMECAP Odyssey Aggressive Growt holds 1.45% of the stake in LICY, owning 2,583,100 shares worth 3.46 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LICY 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 LICY analysts setting a high price target of $2.00 and a low target of $0.51, the average target price over the next 12 months is $1.09. Based on these targets, LICY could surge 217.46% to reach the target high and fall by -19.05% to reach the target low. Reaching the average price target will result in a growth of 73.02% from current levels.

Summary of Insider Activity:

Insiders traded LICY stock several times over the past three months with 2 Buys and 1 Sells. In these transactions, 15,269 shares were bought while 235 shares were sold. The number of buy transactions has increased to 39 while that of sell transactions has risen to 33 over the past year. The total number of shares bought during that period was 1,254,401 while 1,245,012 shares were sold.