This Analyst Recently Issued Research Note On Purple Innovation Inc. (PRPL)


As of Friday close, Purple Innovation Inc.’s (NASDAQ:PRPL) stock was down -$0.65, moving down -19.70 percent to $2.65. The average number of shares traded per day over the past five days has been 1,903,320 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.85 fall in that time frame. In the last twenty days, the average volume was 1,058,525, while in the previous 50 days, it was 919,718.

Since last month, PRPL stock retreated -41.37%. Shares of the company fell to $2.33 on 03/17/23, the lowest level in the past month. A 52-week high of $7.97 was reached on 02/02/23 after having rallying from a 52-week low of $2.65. Since the beginning of this year, PRPL’s stock price has dropped by -44.68% or -$2.14, and marked a new high 10 times. However, the stock has declined by -66.75% since its 52-week high.

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PRPL stock investors should be aware that Purple Innovation Inc. (PRPL) stock had its last reported insider trading activity 33 days ago on Feb 13. Coliseum Capital Management, L, the Director of the company, purchased of 5,960,320 shares for $4.50 on Feb 13. It resulted in a $26,821,440 investment by the insider. McGarvey Casey Kale added 30,000 shares at an average price of $2.85 on Sep 16. The insider now owns 78,718 shares following the transaction. On Sep 07, Director DICAMILLO GARY T bought 10,000 shares at $2.66 apiece. The transaction was valued at $26,600.

Valuation Metrics

The stock’s beta is 1.64. Besides these, the trailing price-to-sales (P/S) ratio of 0.46, the price-to-book (PB) ratio of 0.92.

Financial Health

In the three months ended December 30, Purple Innovation Inc.’s quick ratio stood at 1.00, while its current ratio was 1.80, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 0.15, and the total debt-to-equity ratio was 0.16. On the profitability front, the trailing twelve-month gross margin is 36.40% percent. In the year ended December 30, operating margins totaled -9.50%. Based on annual data, PRPL earned $294.97 million in gross profit and brought in $726.23 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -9.10%. Return on equity (ROE) for the past 12 months was -19.60%.

According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. PRPL’s revenue fell -19.19% to $144.11 million during the quarter, while net income inched up to $143.28 million. While analysts expected Purple Innovation Inc. to report -$0.06 quarterly earnings, the actual figure was -$0.1 per share, beating the consensus estimate by -66.70%. During the quarter, the company generated $5.93 million in EBITDA. The liabilities of Purple Innovation Inc. were 438.39 million at the end of its most recent quarter ended December 30, and its total debt was $167.92 million. The value of shareholders’ equity is $91.83 million.

Technical Picture

This quick technical analysis looks at Purple Innovation Inc.’s (PRPL) price momentum. With a historical volatility rate of 129.91%, the RSI 9-day stood at 16.35% on 17 March.

With respect to its five-day moving average, the current Purple Innovation Inc. price is down by -24.29% percent or -$0.85. At present, PRPL shares trade -40.45% below its 20-day simple moving average and -28.57% percent below its 100-day simple moving average. However, the stock is currently trading approximately -44.91% below its SMA50 and -48.84% below its SMA200.

Stochastic coefficient K was 15.44% and Stochastic coefficient D was 14.02%, while ATR was 0.37. Given the Stochastic reading of 15.78% for the 14-day period, the RSI (14) reading has been calculated as 21.98%. As of today, the MACD Oscillator reading stands at -0.37, while the 14-day reading stands at -0.63.


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