Primo Brands Corporation (NYSE:PRMB) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts maintain a Moderate Buy consensus on Primo Brands, with 11 buy ratings and four holds among 15 brokerages. The average 12-month price target is $28.25, above the reported $20.55 share price.
• Primo Brands exceeded quarterly expectations, reporting EPS of $0.37 versus $0.32 expected and revenue of $1.80 billion versus $1.77 billion expected. Revenue increased 3.8% year over year.
• CEO Eric Foss purchased 84,000 shares for approximately $2.0 million, while hedge funds and institutional investors own 87.71% of the stock. The company also pays a quarterly dividend of $0.12 per share, representing a 2.3% yield.

Shares of Primo Brands Corporation (NYSE:PRMB - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the fifteen brokerages that are currently covering the firm, MarketBeat.com reports. Four research analysts have rated the stock with a hold recommendation and eleven have given a buy recommendation to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $28.25.

PRMB has been the subject of a number of research analyst reports. JPMorgan Chase & Co. increased their target price on shares of Primo Brands from $26.00 to $29.00 and gave the company an "overweight" rating in a report on Thursday, July 16th. Morgan Stanley restated an "overweight" rating and issued a $29.00 price target on shares of Primo Brands in a report on Friday, August 7th. Royal Bank Of Canada raised their price objective on Primo Brands from $28.00 to $31.00 and gave the company an "outperform" rating in a research note on Friday, August 7th. TD Cowen reaffirmed a "buy" rating on shares of Primo Brands in a report on Thursday, August 6th. Finally, Wall Street Zen upgraded Primo Brands from a "sell" rating to a "hold" rating in a research report on Saturday, May 23rd.

Insider Activity at Primo Brands

In other Primo Brands news, CEO Eric Foss acquired 84,000 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The shares were acquired at an average cost of $23.80 per share, for a total transaction of $1,999,200.00. Following the transaction, the chief executive officer directly owned 573,806 shares of the company's stock, valued at approximately $13,656,582.80. This represents a 17.15% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 32.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Primo Brands

Several hedge funds have recently added to or reduced their stakes in the business. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Primo Brands in the first quarter valued at about $229,000. Caxton Associates LLP purchased a new position in shares of Primo Brands during the 1st quarter worth approximately $266,000. American Century Companies Inc. increased its stake in shares of Primo Brands by 9.3% during the 2nd quarter. American Century Companies Inc. now owns 27,226 shares of the company's stock worth $806,000 after purchasing an additional 2,318 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Primo Brands by 797.8% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 54,589 shares of the company's stock worth $1,617,000 after purchasing an additional 48,509 shares during the last quarter. Finally, Invesco Ltd. raised its position in shares of Primo Brands by 29.1% during the 2nd quarter. Invesco Ltd. now owns 301,535 shares of the company's stock worth $8,931,000 after purchasing an additional 67,930 shares during the last quarter. 87.71% of the stock is currently owned by hedge funds and other institutional investors.

Primo Brands Stock Performance

NYSE:PRMB opened at $20.55 on Friday. The company has a quick ratio of 0.86, a current ratio of 1.05 and a debt-to-equity ratio of 1.71. Primo Brands has a fifty-two week low of $14.36 and a fifty-two week high of $26.21. The stock has a market cap of $7.45 billion, a PE ratio of 79.04, a price-to-earnings-growth ratio of 1.43 and a beta of 0.73. The firm's fifty day simple moving average is $23.40 and its 200-day simple moving average is $22.33.

Primo Brands (NYSE:PRMB - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.37 EPS for the quarter, beating the consensus estimate of $0.32 by $0.05. The firm had revenue of $1.80 billion during the quarter, compared to analysts' expectations of $1.77 billion. Primo Brands had a net margin of 1.49% and a return on equity of 14.24%. The business's revenue for the quarter was up 3.8% compared to the same quarter last year. During the same quarter last year, the business earned $0.36 earnings per share. Analysts expect that Primo Brands will post 1.27 earnings per share for the current fiscal year.

Primo Brands Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th were paid a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Monday, August 24th. Primo Brands's payout ratio is 184.62%.

Primo Brands Company Profile

Primo Brands Corporation NYSE: PRMB is a North American beverage company focused on providing bottled water, water dispensers, water filtration products and related hydration services. Its offerings include spring, purified and mineral water, as well as refillable and reusable water solutions for households, businesses and other organizations.

The company sells its products through retail, direct delivery and exchange programs, including home and office delivery and services connected with water dispensers.

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