Breaking Down Purple Innovation: 6 Analysts Share Their Views
Purple Innovation (NASDAQ:PRPL) underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 2 | 2 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 2 | 1 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 0 | 0 |
Analysts have recently evaluated Purple Innovation and provided 12-month price targets. The average target is $2.25, accompanied by a high estimate of $2.50 and a low estimate of $2.00. Witnessing a positive shift, the current average has risen by 45.16% from the previous average price target of $1.55.
Diving into Analyst Ratings: An In-Depth Exploration
In examining recent analyst actions, we gain insights into how financial experts perceive Purple Innovation. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Seth Basham | Wedbush | Maintains | Outperform | $2.25 | - |
| Matt Koranda | Roth MKM | Maintains | Buy | $2.50 | $2.50 |
| Matt Koranda | Roth MKM | Raises | Buy | $2.50 | $2.00 |
| Jeremy Hamblin | Craig-Hallum | Raises | Hold | $2.00 | $1.00 |
| Seth Basham | Wedbush | Raises | Outperform | $2.25 | $1.25 |
| Matt Koranda | Roth MKM | Raises | Neutral | $2.00 | $1.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Purple Innovation. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Purple Innovation compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Purple Innovation's stock. This examination reveals shifts in analysts' expectations over time.
To gain a panoramic view of Purple Innovation's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
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Unveiling the Story Behind Purple Innovation
Purple Innovation Inc is a comfort innovation company. The company designs, manufactures and sells a range of comfort technology offerings, including mattresses, a pillow, cushions, sheets, bed platforms, and other products. It sells its products through online channels, traditional wholesale partners and third-party online retailers.
Purple Innovation: Delving into Financials
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Positive Revenue Trend: Examining Purple Innovation's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.13% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.
Net Margin: Purple Innovation's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -12.56%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Purple Innovation's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -14.79%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -4.65%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Purple Innovation's debt-to-equity ratio is below the industry average. With a ratio of 1.33, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
How Are Analyst Ratings Determined?
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.