Perimeter Solutions (NYSE:PRM) Coverage Initiated at CJS Securities

Key Points

• CJS Securities initiated coverage on Perimeter Solutions with a market outperform rating and a $48 price target, implying about 51.56% upside from the current share price.
• The stock has drawn generally positive analyst attention overall, with several firms raising targets or upgrading ratings; MarketBeat says the consensus view is currently Moderate Buy with an average price target of $40.67.
• Perimeter Solutions recently beat earnings expectations, reporting $0.06 EPS versus the $0.02 estimate, while insiders have been selling shares and institutional investors continue to hold a large stake in the company.

CJS Securities began coverage on shares of Perimeter Solutions (NYSE:PRM - Get Free Report) in a research note issued on Tuesday, MarketBeat.com reports. The firm set a "market outperform" rating and a $48.00 price target on the stock. CJS Securities' target price suggests a potential upside of 51.56% from the company's current price.

A number of other equities analysts have also issued reports on PRM. UBS Group upped their price objective on shares of Perimeter Solutions from $30.00 to $34.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Zacks Research upgraded shares of Perimeter Solutions from a "hold" rating to a "strong-buy" rating in a report on Tuesday, April 14th. Morgan Stanley boosted their target price on Perimeter Solutions from $35.00 to $40.00 and gave the stock an "overweight" rating in a report on Monday, May 11th. Weiss Ratings raised Perimeter Solutions from a "sell (d)" rating to a "sell (d+)" rating in a research note on Thursday, May 28th. Finally, Wall Street Zen upgraded Perimeter Solutions from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $40.67.

Perimeter Solutions Stock Performance

PRM stock traded up $0.59 during midday trading on Tuesday, reaching $31.67. The company had a trading volume of 27,329 shares, compared to its average volume of 1,118,415. The firm has a market capitalization of $5.17 billion, a PE ratio of -23.65 and a beta of 1.92. The stock has a 50 day moving average price of $29.36 and a 200 day moving average price of $27.47. Perimeter Solutions has a fifty-two week low of $13.05 and a fifty-two week high of $34.89. The company has a quick ratio of 1.61, a current ratio of 3.09 and a debt-to-equity ratio of 1.01.

Perimeter Solutions (NYSE:PRM - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.04. The business had revenue of $125.07 million for the quarter, compared to the consensus estimate of $121.80 million. Perimeter Solutions had a positive return on equity of 18.29% and a negative net margin of 26.93%. Analysts anticipate that Perimeter Solutions will post 1.91 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Haitham Khouri sold 117,511 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $31.19, for a total value of $3,665,168.09. Following the transaction, the chief executive officer owned 1,874,615 shares in the company, valued at approximately $58,469,241.85. This represents a 5.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Kyle Sable sold 150,000 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $31.52, for a total value of $4,728,000.00. Following the transaction, the chief financial officer directly owned 20,000 shares in the company, valued at approximately $630,400. This represents a 88.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 679,535 shares of company stock valued at $21,846,411 in the last three months. Insiders own 13.10% of the company's stock.

Hedge Funds Weigh In On Perimeter Solutions

Large investors have recently made changes to their positions in the business. Balance Capital Partners L.P. bought a new position in Perimeter Solutions during the fourth quarter worth $69,115,000. Principal Financial Group Inc. grew its position in Perimeter Solutions by 15.0% in the 1st quarter. Principal Financial Group Inc. now owns 12,513,159 shares of the company's stock worth $305,572,000 after purchasing an additional 1,634,158 shares during the last quarter. Janus Henderson Group PLC increased its holdings in shares of Perimeter Solutions by 54.9% during the 4th quarter. Janus Henderson Group PLC now owns 3,691,773 shares of the company's stock worth $101,634,000 after purchasing an additional 1,308,602 shares during the period. Invesco Ltd. increased its holdings in shares of Perimeter Solutions by 157.3% during the 4th quarter. Invesco Ltd. now owns 1,294,686 shares of the company's stock worth $35,643,000 after purchasing an additional 791,558 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of Perimeter Solutions by 50.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,132,167 shares of the company's stock valued at $47,739,000 after buying an additional 714,816 shares during the last quarter. Institutional investors and hedge funds own 89.93% of the company's stock.

Perimeter Solutions Company Profile

Perimeter Solutions Ltd. NYSE: PRM is a global specialty chemicals company focused on delivering performance-driven solutions for the oil and gas, coatings, plastics, water treatment and packaging markets. Established as an independent publicly traded company in December 2019 following its spin-off from NewMarket Corporation, Perimeter Solutions has positioned itself as a leading provider of highly engineered chemical products designed to optimize upstream oil recovery, protect infrastructure and enhance the performance of industrial processes.

The company's core product portfolio spans several key segments.

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