Southpoint Capital Advisors LP Grows Holdings in Primo Brands Corporation $PRMB

Key Points

• Southpoint Capital Advisors LP increased its stake in Primo Brands Corporation by 40% during Q1, now holding 3.5 million shares, which constitutes 2.9% of its investment portfolio.
• Director Michael Cramer and CEO Robbert Rietbroek both bought shares of Primo Brands recently, increasing their positions by 45.65% and 1.43%, respectively.
• Primo Brands reported $0.36 earnings per share for the last quarter, falling short of the analyst consensus of $0.41, with revenues totaling $1.73 billion.

Southpoint Capital Advisors LP boosted its position in shares of Primo Brands Corporation (NYSE:PRMB - Free Report) by 40.0% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,500,000 shares of the company's stock after acquiring an additional 1,000,000 shares during the period. Primo Brands accounts for about 2.9% of Southpoint Capital Advisors LP's holdings, making the stock its 16th biggest position. Southpoint Capital Advisors LP owned 0.93% of Primo Brands worth $124,215,000 at the end of the most recent reporting period.

Several other hedge funds also recently bought and sold shares of the company. Maverick Capital Ltd. purchased a new position in Primo Brands during the first quarter valued at approximately $68,853,000. Ghisallo Capital Management LLC purchased a new position in Primo Brands during the first quarter valued at approximately $72,478,000. Sculptor Capital LP purchased a new position in Primo Brands during the first quarter valued at approximately $10,931,000. Aperture Investors LLC purchased a new position in Primo Brands during the first quarter valued at approximately $16,067,000. Finally, Driehaus Capital Management LLC purchased a new position in Primo Brands during the first quarter valued at approximately $18,047,000. Hedge funds and other institutional investors own 87.71% of the company's stock.

Primo Brands Price Performance

PRMB stock traded up $0.11 during midday trading on Friday, reaching $25.22. The company had a trading volume of 4,442,434 shares, compared to its average volume of 5,212,266. The company has a market capitalization of $9.42 billion, a P/E ratio of -229.31, a P/E/G ratio of 0.67 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. Primo Brands Corporation has a 1 year low of $21.60 and a 1 year high of $35.85. The firm has a 50-day moving average price of $27.01 and a 200-day moving average price of $30.43.

Primo Brands (NYSE:PRMB - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported $0.36 earnings per share for the quarter, missing analysts' consensus estimates 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%.The business's revenue for the quarter was up 31.6% on a year-over-year basis. Primo Brands has set its FY 2025 guidance at EPS. On average, research analysts anticipate that Primo Brands Corporation will post 1.13 earnings per share for the current fiscal year.

Primo Brands Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Thursday, August 21st were issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date was Thursday, August 21st. Primo Brands's payout ratio is presently -363.64%.

Insider Transactions at Primo Brands

In other Primo Brands news, CEO Robbert Rietbroek acquired 8,285 shares of the stock in a transaction dated Wednesday, August 13th. The stock was purchased at an average cost of $24.12 per share, for a total transaction of $199,834.20. Following the acquisition, the chief executive officer owned 586,349 shares in the company, valued at $14,142,737.88. The trade was a 1.43% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Michael John Cramer acquired 4,000 shares of the stock in a transaction dated Thursday, August 14th. The stock was acquired at an average price of $24.46 per share, with a total value of $97,840.00. Following the completion of the acquisition, the director owned 12,762 shares in the company, valued at approximately $312,158.52. The trade was a 45.65% increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders acquired 24,685 shares of company stock worth $595,770. 58.40% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

PRMB has been the subject of several recent analyst reports. Morgan Stanley reduced 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 note on Monday, August 11th. Mizuho cut their price target on shares of Primo Brands from $43.00 to $40.00 and set an "outperform" rating for the company in a research note on Wednesday, August 20th. Barclays cut their price target on shares of Primo Brands from $40.00 to $38.00 and set an "overweight" rating for the company in a research note on Monday, June 16th. Zacks Research cut shares of Primo Brands from a "hold" rating to a "strong sell" rating in a research note on Friday, August 22nd. Finally, TD Securities cut their price target on shares of Primo Brands from $48.00 to $35.00 and set a "buy" rating for the company in a research note on Friday, August 8th. Nine equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Primo Brands currently has a consensus rating of "Moderate Buy" and an average target price of $37.30.

Primo Brands Company Profile

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.