UBS slashes price target on Purple Innovation Inc. [PRPL] – find out why.

Purple Innovation Inc. [NASDAQ: PRPL] closed the trading session at $3.44 on 09/01/22. The day’s price range saw the stock hit a low of $2.69, while the highest price level was $3.46. The company report on September 1, 2022 that Purple Innovation Announces Acquisition of Intellibed.

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‘The Power of Gel Grid Expands’.

The innovation and marketing power of Purple meets the luxury offering of Intellibed to bring retailers and wholesalers higher margin business and increased revenues by offering a complete range of beds for every comfort profile at every price point. The deal will unite Purple Innovations’ IP under the Purple brand and solidify its leadership of the Gel Grid category it created, taking advantage of increased consumer interest in Gel Grid technology, the best real innovation in sleep technology since memory foam.  .

The stocks have a year to date performance of -74.08 percent and weekly performance of 10.97 percent. The stock has been moved at -54.80 percent over the last six months. The stock has performed -8.27 percent around the most recent 30 days and changed -28.48 percent over the most recent 3-months.

If compared to the average trading volume of 1.33M shares, PRPL reached to a volume of 3117989 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Purple Innovation Inc. [PRPL]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PRPL shares is $5.10 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PRPL stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

UBS have made an estimate for Purple Innovation Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 02, 2022. While these analysts kept the previous recommendation, Truist raised their target price from $10 to $5. The new note on the price target was released on March 02, 2022, representing the official price target for Purple Innovation Inc. stock. Previously, the target price had yet another drop from $22 to $16, while KeyBanc Capital Markets kept a Overweight rating on PRPL stock. On March 02, 2022, analysts decreased their price target for PRPL shares from 5.50 to 4.50.

The Average True Range (ATR) for Purple Innovation Inc. is set at 0.31, with the Price to Sales ratio for PRPL stock in the period of the last 12 months amounting to 0.47. The Price to Book ratio for the last quarter was 1.30, with the Price to Cash per share for the same quarter was set at 0.46.

PRPL stock trade performance evaluation

Purple Innovation Inc. [PRPL] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 10.97. With this latest performance, PRPL shares dropped by -8.27% in over the last four-week period, additionally sinking by -54.80% over the last 6 months – not to mention a drop of -86.31% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PRPL stock in for the last two-week period is set at 51.32, with the RSI for the last a single of trading hit 55.84, and the three-weeks RSI is set at 49.25 for Purple Innovation Inc. [PRPL]. The present Moving Average for the last 50 days of trading for this stock 3.46, while it was recorded at 3.02 for the last single week of trading, and 6.49 for the last 200 days.

Purple Innovation Inc. [PRPL]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Purple Innovation Inc. [PRPL] shares currently have an operating margin of -3.22 and a Gross Margin at +40.62. Purple Innovation Inc.’s Net Margin is presently recorded at +0.56.

Return on Equity for this stock inclined to 3.79, with Return on Assets sitting at 0.67.

Purple Innovation Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.90.

Earnings per share (EPS) analysis for Purple Innovation Inc. [PRPL] stock

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PRPL. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Purple Innovation Inc. go to 14.60%.

Purple Innovation Inc. [PRPL]: Insider Ownership positions

There are presently around $322 million, in the hands of institutional investors. The top three institutional holders of PRPL stocks are: COLISEUM CAPITAL MANAGEMENT, LLC with ownership of 40,854,130, which is approximately 32.095% of the company’s market cap and around 0.50% of the total institutional ownership; FMR LLC, holding 12,151,872 shares of the stock with an approximate value of $41.8 million in PRPL stocks shares; and NO STREET GP LP, currently with $14.96 million in PRPL stock with ownership of nearly 43.802% of the company’s market capitalization.

Positions in Purple Innovation Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 55 institutional holders increased their position in Purple Innovation Inc. [NASDAQ:PRPL] by around 17,785,296 shares. Additionally, 86 investors decreased positions by around 16,190,577 shares, while 16 investors held positions by with 59,582,305 shares. The mentioned changes placed institutional holdings at 93,558,178 shares, according to the latest SEC report filing. PRPL stock had 13 new institutional investments in for a total of 880,389 shares, while 43 institutional investors sold positions of 6,614,492 shares during the same period.


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