Primo Brands (NYSE:PRMB) Stock Sees Unusually High Call Option Buying

Key Points

• Unusually high options activity: Investors bought 30,629 Primo Brands call options, about 1,401% above the typical daily volume of 2,041 contracts.
• Insider and institutional confidence: CEO Eric Foss purchased 84,000 shares worth nearly $2 million, while institutional investors own 87.71% of the company’s stock.
• Analyst outlook remains positive: Primo Brands has a consensus “Moderate Buy” rating and an average price target of $28.25, despite shares trading at $19.91. The company also exceeded quarterly earnings and revenue expectations.

Primo Brands Corporation (NYSE:PRMB - Get Free Report) was the target of unusually large options trading activity on Monday. Stock investors acquired 30,629 call options on the stock. This represents an increase of approximately 1,401% compared to the typical daily volume of 2,041 call options.

Insider Activity at Primo Brands

In related news, CEO Eric Foss bought 84,000 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The shares were bought at an average cost of $23.80 per share, with a total value of $1,999,200.00. Following the acquisition, the chief executive officer owned 573,806 shares in the company, valued at $13,656,582.80. This trade represents a 17.15% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 32.90% of the stock is owned by company insiders.

Institutional Trading of Primo Brands

A number of institutional investors have recently made changes to their positions in the business. CX Institutional purchased a new stake in shares of Primo Brands during the third quarter worth about $38,000. Tidal Investments LLC increased its stake in shares of Primo Brands by 226.7% in the second quarter. Tidal Investments LLC now owns 1,150,675 shares of the company's stock worth $28,122,000 after acquiring an additional 798,488 shares during the period. WINTON GROUP Ltd raised its stake in shares of Primo Brands by 32.0% during the 2nd quarter. WINTON GROUP Ltd now owns 163,916 shares of the company's stock valued at $4,006,000 after buying an additional 39,711 shares during the last quarter. Engineers Gate Manager LP purchased a new position in Primo Brands during the second quarter valued at approximately $1,063,000. Finally, Integrated Wealth Concepts LLC acquired a new position in shares of Primo Brands in the 2nd quarter valued at $180,000. Institutional investors and hedge funds own 87.71% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have weighed in on PRMB. Morgan Stanley reaffirmed an "overweight" rating and set a $29.00 price target on shares of Primo Brands in a report on Friday, August 7th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $25.00 price objective on shares of Primo Brands in a report on Thursday, August 6th. TD Cowen reaffirmed a "buy" rating on shares of Primo Brands in a report on Thursday, August 6th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Primo Brands in a research note on Friday, August 7th. Finally, Barclays upped their target price on Primo Brands from $27.00 to $29.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. Eleven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $28.25.

Primo Brands Stock Up 2.0%

Shares of PRMB traded up $0.40 during midday trading on Monday, reaching $19.91. 3,313,188 shares of the stock were exchanged, compared to its average volume of 4,548,480. The company has a market capitalization of $7.21 billion, a P/E ratio of 76.49, a PEG ratio of 1.34 and a beta of 0.71. The company has a current ratio of 1.05, a quick ratio of 0.86 and a debt-to-equity ratio of 1.71. Primo Brands has a 52 week low of $14.36 and a 52 week high of $26.21. The company's 50 day moving average is $22.09 and its two-hundred day moving average is $22.18.

Primo Brands (NYSE:PRMB - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.05. Primo Brands had a return on equity of 14.24% and a net margin of 1.49%.The firm had revenue of $1.80 billion during the quarter, compared to the consensus estimate of $1.77 billion. During the same period in the previous year, the company posted $0.36 earnings per share. The firm's quarterly revenue was up 3.8% on a year-over-year basis. On average, sell-side analysts anticipate that Primo Brands will post 1.27 earnings per share for the current year.

Primo Brands Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Monday, August 24th were paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Monday, August 24th. Primo Brands's dividend payout ratio is 184.62%.

Primo Brands Company Profile

Primo Brands Corporation is a beverage company focused on hydration products and water services. Its offerings include purified, spring and mineral water; enhanced and sparkling water; water dispensers; filtration products; and bottled-water delivery services for homes, businesses and other organizations.

The company markets a broad portfolio of regional and national brands, including Primo, Poland Spring, Deer Park, Arrowhead, Ice Mountain, Ozarka, Pure Life and Splash. Its business combines packaged beverages sold through retail and other distribution channels with direct-to-consumer delivery and water solutions supported by dispensers and filtration systems.

Primo Brands was formed through the combination of Primo Water Corporation and BlueTriton Brands, a transaction completed in 2024.

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