Timing, Fundamentals, and Diversification of Purple Innovation Inc. (PRPL)

Purple Innovation Inc. (NASDAQ: PRPL) closed the day trading at $5.81 up 14.37% from the previous closing price of $5.08. In other words, the price has increased by $+0.73 from its previous closing price. On the day, 883263 shares were traded. PRPL stock price reached its highest trading level at $5.99 during the session, while it also had its lowest trading level at $5.10.

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For a better understanding of PRPL, let’s look at its different ratios. For the most recent quarter (mrq), Quick Ratio is recorded 1.00 and its Current Ratio is at 1.80. In the meantime, Its Debt-to-Equity ratio is 0.16 whereas as Long-Term Debt/Eq ratio is at 0.15.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Craig Hallum on November 10, 2022, Upgraded its rating to Buy and sets its target price to $6 from $4 previously.

On March 02, 2022, UBS reiterated its Neutral rating and also upped its target price recommendation from $10 to $6.50.

Truist reiterated its Hold rating for the stock on March 02, 2022, while the target price for the stock was revised from $10 to $5.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Sep 16 when McGarvey Casey Kale bought 30,000 shares for $2.85 per share. The transaction valued at 85,500 led to the insider holds 78,718 shares of the business.

DICAMILLO GARY T bought 10,000 shares of PRPL for $26,600 on Sep 07. The Director now owns 113,083 shares after completing the transaction at $2.66 per share. On Sep 06, another insider, Roddy Jack, who serves as the Chief People Officer of the company, bought 2,000 shares for $2.74 each. As a result, the insider paid 5,480 and bolstered with 14,000 shares of the company.

Valuation Measures:

For the stock, the TTM Price-to-Sale (P/S) ratio is 0.94 while its Price-to-Book (P/B) ratio in mrq is 2.01.

Stock Price History:

Over the past 52 weeks, PRPL has reached a high of $9.20, while it has fallen to a 52-week low of $2.65. The 50-Day Moving Average of the stock is 4.94, while the 200-Day Moving Average is calculated to be 4.22.

Shares Statistics:

Over the past 3-months, PRPL traded about 666.76K shares per day on average, while over the past 10 days, PRPL traded about 414.74k shares per day. A total of 91.83M shares are outstanding, with a floating share count of 90.16M. Insiders hold about 0.20% of the company’s shares, while institutions hold 94.30% stake in the company. Shares short for PRPL as of Oct 13, 2022 were 6.84M with a Short Ratio of 5.23M, compared to 9.48M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 7.54% and a Short% of Float of 12.81%.

Earnings Estimates

Current recommendations for the stock of the company come from 8 analysts. On average, analysts expect EPS of -$0.05 for the current quarter, with a high estimate of $0.06 and a low estimate of -$0.12, while EPS last year was -$0.07. The consensus estimate for the next quarter is -$0.06, with high estimates of -$0.01 and low estimates of -$0.09.

Analysts are recommending an EPS of between -$0.39 and -$0.53 for the fiscal current year, implying an average EPS of -$0.45. EPS for the following year is -$0.06, with 6 analysts recommending between $0.04 and -$0.11.

Revenue Estimates

A total of 9 analysts have provided revenue estimates for PRPL’s current fiscal year. The highest revenue estimate was $589.7M, while the lowest revenue estimate was $567.34M, resulting in an average revenue estimate of $578.66M. In the same quarter a year ago, actual revenue was $726.23M, down -20.30% from the average estimate. Based on 9 analysts’ estimates, the company’s revenue will be $639.01M in the next fiscal year. The high estimate is $730M and the low estimate is $547.3M. The average revenue growth estimate for next year is up 10.40% from the average revenue estimate for this year.