Bank of America Issues Pessimistic Forecast for Primo Brands (NYSE:PRMB) Stock Price

Key Points

• Bank of America has reduced its price target for Primo Brands (NYSE:PRMB) from $32.00 to $26.00, while maintaining a "buy" rating, indicating an estimated upside of 19.02% from the current stock price.
• Primo Brands' recent earnings report showed a missed EPS estimate of $0.36, against a consensus of $0.41, along with revenue of $1.73 billion compared to an expected $1.83 billion.
• Institutional investors and hedge funds have significantly increased their stake in Primo Brands, with notable increases from firms like Viking Global Investors and Boston Partners, reflecting growing interest in the company.

Primo Brands (NYSE:PRMB - Get Free Report) had its price target cut by equities research analysts at Bank of America from $32.00 to $26.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Bank of America's price objective would indicate a potential upside of 19.02% from the stock's current price.

Other equities analysts have also recently issued reports about the stock. Weiss Ratings reiterated a "hold (c-)" rating on shares of Primo Brands in a research note on Wednesday. TD Securities dropped their target price on shares of Primo Brands from $48.00 to $35.00 and set a "buy" rating for the company in a research report on Friday, August 8th. Barclays dropped their target price on shares of Primo Brands from $40.00 to $38.00 and set an "overweight" rating for the company in a research report on Monday, June 16th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $26.00 target price on shares of Primo Brands in a research report on Friday, August 8th. Finally, Morgan Stanley lowered their price objective on shares of Primo Brands from $38.00 to $35.00 and set an "overweight" rating for the company in a research report on Monday, August 11th. Nine research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Primo Brands presently has an average rating of "Moderate Buy" and an average target price of $35.00.

Primo Brands Stock Down 0.5%

Primo Brands stock traded down $0.11 during trading hours on Wednesday, hitting $21.85. The company had a trading volume of 2,062,159 shares, compared to its average volume of 5,196,642. The firm has a market capitalization of $8.16 billion, a P/E ratio of -198.59, a price-to-earnings-growth ratio of 0.57 and a beta of 0.76. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.06 and a quick ratio of 0.88. The firm's fifty day moving average is $24.13 and its 200-day moving average is $28.95. Primo Brands has a fifty-two week low of $21.45 and a fifty-two week high of $35.85.

Primo Brands (NYSE:PRMB - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported $0.36 EPS for the quarter, missing the consensus estimate of $0.41 by ($0.05). The business had revenue of $1.73 billion during the quarter, compared to the consensus estimate of $1.83 billion. Primo Brands had a positive return on equity of 9.64% and a negative net margin of 1.20%.Primo Brands's revenue for the quarter was up 31.6% compared to the same quarter last year. Primo Brands has set its FY 2025 guidance at EPS. On average, research analysts forecast that Primo Brands will post 1.13 earnings per share for the current year.

Insider Activity

In related news, Director Michael John Cramer bought 4,000 shares of Primo Brands stock in a transaction that occurred on Thursday, August 14th. The shares were acquired at an average cost of $24.46 per share, for a total transaction of $97,840.00. Following the completion of the acquisition, the director directly owned 12,762 shares of the company's stock, valued at approximately $312,158.52. The trade was a 45.65% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Steven P. Stanbrook purchased 12,400 shares of the business's stock in a transaction on Tuesday, August 12th. The shares were acquired at an average price of $24.04 per share, for a total transaction of $298,096.00. Following the completion of the acquisition, the director directly owned 125,025 shares in the company, valued at approximately $3,005,601. This represents a 11.01% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders acquired 24,685 shares of company stock valued at $595,770. 58.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Primo Brands

Institutional investors and hedge funds have recently modified their holdings of the business. Viking Global Investors LP raised its position in Primo Brands by 290.2% in the 2nd quarter. Viking Global Investors LP now owns 19,602,116 shares of the company's stock valued at $580,615,000 after buying an additional 14,578,589 shares during the last quarter. Boston Partners raised its holdings in shares of Primo Brands by 9,613.2% during the 1st quarter. Boston Partners now owns 7,117,540 shares of the company's stock valued at $252,552,000 after buying an additional 7,044,263 shares in the last quarter. Alliancebernstein L.P. increased its stake in Primo Brands by 2,486.6% in the 2nd quarter. Alliancebernstein L.P. now owns 5,867,110 shares of the company's stock worth $173,784,000 after purchasing an additional 5,640,287 shares during the period. Victory Capital Management Inc. purchased a new position in Primo Brands in the 1st quarter worth approximately $184,225,000. Finally, Vanguard Group Inc. increased its stake in shares of Primo Brands by 28.7% during the first quarter. Vanguard Group Inc. now owns 19,704,538 shares of the company's stock valued at $699,314,000 after buying an additional 4,389,327 shares during the period. 87.71% of the stock is currently owned by institutional investors.

About Primo Brands

Primo Brands Corp. is a branded beverage company, which focuses on healthy hydration. It delivers sustainably and domestically sourced diversified offerings across products, formats, channels, price points and consumer occasions, distributed in the United States and Canada. The company provides water filtration units for home and business consumers across North America.

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