Why Pure Cycle (PCYO) Stock Is Gaining Today

NEW YORK (TheStreet) -- Shares of Pure Cycle Corporation (PCYO) are up 7.54% to $6.99 on Monday after it announced a settlement with the State Land Board of Colorado over a lawsuit involving agreements for its exclusive right to provide water service on the Lowry range.

As part of the settlement, Pure Cycle, which provides water and waste water services, will pay a minimum annual water production fee to be credited against future royalties.

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Separately, TheStreet Ratings team rates PURE CYCLE CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate PURE CYCLE CORP (PCYO) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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