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

Key Points

• Call-option activity surged: Investors bought 10,005 Primo Brands call options, about 333% above the typical volume of 2,311.
• The stock slipped 0.5% to $24.00 in Tuesday trading, despite reporting quarterly earnings per share of $0.43—slightly above estimates—and revenue of $1.82 billion, up 3.1% year over year.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $27.73.

Primo Brands Corporation (NYSE:PRMB - Get Free Report) saw some unusual options trading activity on Tuesday. Investors purchased 10,005 call options on the company. This is an increase of approximately 333% compared to the typical volume of 2,311 call options.

Primo Brands Trading Down 0.5%

NYSE:PRMB traded down $0.12 during mid-day trading on Tuesday, reaching $24.00. The company's stock had a trading volume of 1,100,567 shares, compared to its average volume of 4,666,782. Primo Brands has a twelve month low of $14.80 and a twelve month high of $26.21. The stock has a market cap of $8.70 billion, a P/E ratio of 42.86, a P/E/G ratio of 2.12 and a beta of 0.73. The company has a debt-to-equity ratio of 1.71, a current ratio of 1.05 and a quick ratio of 0.86. The company's fifty day simple moving average is $20.33 and its two-hundred day simple moving average is $21.48.

Primo Brands (NYSE:PRMB - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The company reported $0.43 earnings per share for the quarter, beating analysts' consensus estimates of $0.42 by $0.01. The firm had revenue of $1.82 billion for the quarter, compared to analysts' expectations of $1.81 billion. Primo Brands had a net margin of 1.49% and a return on equity of 14.24%. Primo Brands's revenue was up 3.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.41 earnings per share. On average, equities analysts predict that Primo Brands will post 1.27 EPS for the current year.

Primo Brands Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Tuesday, November 24th will be paid a $0.12 dividend. The ex-dividend date is Tuesday, November 24th. This represents a $0.48 annualized dividend and a dividend yield of 2.0%. Primo Brands's dividend payout ratio (DPR) is currently 85.71%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in PRMB. Harbor Investment Advisory LLC purchased a new stake in shares of Primo Brands during the second quarter valued at approximately $37,000. EverSource Wealth Advisors LLC grew its position in Primo Brands by 76.9% during the first quarter. EverSource Wealth Advisors LLC now owns 1,962 shares of the company's stock valued at $37,000 after buying an additional 853 shares during the period. CX Institutional bought a new position in Primo Brands during the third quarter valued at about $38,000. Mirae Asset Global Investments Co. Ltd. purchased a new position in Primo Brands in the third quarter valued at about $39,000. Finally, IFP Advisors Inc increased its stake in shares of Primo Brands by 64.4% during the 2nd quarter. IFP Advisors Inc now owns 3,069 shares of the company's stock worth $75,000 after purchasing an additional 1,202 shares during the last quarter. 87.71% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. TD Cowen reiterated a "buy" rating on shares of Primo Brands in a research report on Thursday, August 6th. JPMorgan Chase & Co. decreased their target price on shares of Primo Brands from $30.00 to $26.00 and set an "overweight" rating on the stock in a research note on Friday, October 30th. Deutsche Bank Aktiengesellschaft set a $21.00 price target on shares of Primo Brands in a report on Monday, October 19th. Morgan Stanley dropped their price target on shares of Primo Brands from $29.00 to $28.00 and set an "overweight" rating for the company in a research report on Monday. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Primo Brands in a report on Wednesday, November 4th. Ten investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Primo Brands currently has an average rating of "Moderate Buy" and an average target price of $27.73.

About Primo Brands

Primo Brands is a North American beverage company focused on bottled water and water-related products and services. Its offerings include spring, purified and mineral water, water dispensers and filtration products, as well as water delivery for homes and businesses.

The company's portfolio includes brands such as Poland Spring, Deer Park, Pure Life, Ice Mountain, Ozarka, Arrowhead and Primo. Its products are sold through retail channels and delivered directly to consumers and businesses.

Primo Brands was formed in 2024 through the combination of Primo Water Corporation and BlueTriton Brands.

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