Investors Buy Large Volume of Call Options on Primo Brands (NYSE:PRMB)

Key Points

• Investors purchased an unusually high volume of call options—7,193 call options on Wednesday, an 88% increase versus average volume—signaling elevated bullish interest in the stock.
• Wall Street sentiment is broadly positive with a consensus rating of Moderate Buy, nine Buy vs. four Hold ratings, and a consensus price target of $25.36—well above the $19.60 close.
• Primo beat quarterly estimates (EPS $0.26 vs. $0.20; revenue $1.55B vs. $1.52B), raised its quarterly dividend to $0.12 (2.4% yield), but the payout ratio is high at 320%.

Primo Brands Corporation (NYSE:PRMB - Get Free Report) was the recipient of unusually large options trading on Wednesday. Investors purchased 7,193 call options on the stock. This represents an increase of 88% compared to the average volume of 3,835 call options.

Wall Street Analyst Weigh In

PRMB has been the topic of several analyst reports. Weiss Ratings raised Primo Brands from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, March 23rd. BMO Capital Markets reaffirmed an "outperform" rating and issued a $35.00 target price on shares of Primo Brands in a research report on Friday, January 23rd. Jefferies Financial Group raised Primo Brands from a "hold" rating to a "buy" rating and set a $25.00 target price on the stock in a research report on Friday, March 27th. Royal Bank Of Canada set a $28.00 target price on Primo Brands in a research report on Thursday, April 9th. Finally, Morgan Stanley reaffirmed an "overweight" rating on shares of Primo Brands in a research report on Monday, January 5th. Nine research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, Primo Brands has an average rating of "Moderate Buy" and a consensus price target of $25.36.

Primo Brands Trading Down 0.5%

NYSE PRMB traded down $0.10 on Wednesday, hitting $19.60. 193,919 shares of the company were exchanged, compared to its average volume of 5,404,349. The company has a debt-to-equity ratio of 1.70, a current ratio of 0.95 and a quick ratio of 0.78. Primo Brands has a twelve month low of $14.36 and a twelve month high of $33.70. The firm has a market capitalization of $7.12 billion, a P/E ratio of 130.03, a price-to-earnings-growth ratio of 1.60 and a beta of 0.65. The company's 50 day moving average price is $19.99 and its 200-day moving average price is $18.78.

Primo Brands (NYSE:PRMB - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.06. The company had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.52 billion. Primo Brands had a net margin of 0.90% and a return on equity of 14.52%. The company's revenue was up 11.2% on a year-over-year basis. During the same period in the previous year, the business earned $0.13 EPS. Analysts predict that Primo Brands will post 1.28 earnings per share for the current fiscal year.

Primo Brands Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 23rd. Shareholders of record on Friday, March 6th were given a $0.12 dividend. This represents a $0.48 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend was Friday, March 6th. This is an increase from Primo Brands's previous quarterly dividend of $0.10. Primo Brands's payout ratio is currently 320.00%.

Institutional Investors Weigh In On Primo Brands

Several large investors have recently made changes to their positions in PRMB. Dynamic Technology Lab Private Ltd bought a new stake in shares of Primo Brands in the 1st quarter valued at approximately $229,000. Caxton Associates LLP bought a new stake in shares of Primo Brands during the 1st quarter worth about $266,000. American Century Companies Inc. boosted 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 acquiring an additional 2,318 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted 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. lifted 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. Institutional investors own 87.71% of the company's stock.

Primo Brands Company Profile

Primo Brands NYSE: PRMB is a consumer packaged beverage company that was established as an independent entity following a corporate spin‐off in 2023. The company specializes in the production, marketing and distribution of a broad portfolio of bottled water products, including purified, mineral and sparkling varieties. Through its focus on quality control and innovation, Primo Brands aims to deliver clean, great-tasting water in formats tailored to both at-home consumption and on-the-go lifestyles.

Its product range spans multi-serve and single-serve bottles, aluminum cans and other eco-friendly packaging solutions.

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