Perimeter Solutions (NYSE:PRM) Hits New 1-Year High - Still a Buy?

Key Points

• Perimeter Solutions shares hit a new 52-week high of $18.52, closing at $18.50 with over 1.3 million shares traded.
• Analysts have mixed ratings for the stock, with UBS Group raising its price target to $20.00 while Wall Street Zen downgraded it to a "hold."
• The company reported a strong quarterly performance with EPS of $0.39, surpassing estimates, and generated revenue of $162.64 million against expectations of $108.91 million.

Shares of Perimeter Solutions, SA (NYSE:PRM - Get Free Report) hit a new 52-week high during trading on Thursday . The stock traded as high as $18.52 and last traded at $18.50, with a volume of 1332530 shares trading hands. The stock had previously closed at $18.10.

Analyst Ratings Changes

Several analysts recently commented on PRM shares. Wall Street Zen downgraded shares of Perimeter Solutions from a "buy" rating to a "hold" rating in a research report on Sunday, July 20th. UBS Group upped their target price on shares of Perimeter Solutions from $15.00 to $20.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Finally, Morgan Stanley lowered their target price on shares of Perimeter Solutions from $18.00 to $17.00 and set an "overweight" rating on the stock in a research note on Friday, May 16th.

Perimeter Solutions Stock Up 0.1%

The company's 50 day moving average price is $15.56 and its two-hundred day moving average price is $12.39. The company has a current ratio of 4.04, a quick ratio of 2.60 and a debt-to-equity ratio of 0.57. The stock has a market cap of $2.72 billion, a P/E ratio of 43.12 and a beta of 1.96.

Perimeter Solutions (NYSE:PRM - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $0.39 EPS for the quarter, topping analysts' consensus estimates of $0.28 by $0.11. Perimeter Solutions had a net margin of 13.05% and a negative return on equity of 1.11%. The company had revenue of $162.64 million for the quarter, compared to analysts' expectations of $108.91 million. Equities analysts forecast that Perimeter Solutions, SA will post 0.71 earnings per share for the current year.

Insider Buying and Selling

In other news, major shareholder Windacre Partnership Master Fu bought 254,600 shares of the firm's stock in a transaction on Friday, June 27th. The shares were bought at an average price of $13.98 per share, for a total transaction of $3,559,308.00. Following the purchase, the insider owned 21,854,600 shares in the company, valued at approximately $305,527,308. The trade was a 1.18% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Vivek Raj sold 32,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $11.70, for a total transaction of $374,400.00. Following the sale, the director owned 68,132 shares in the company, valued at approximately $797,144.40. The trade was a 31.96% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 200,810 shares of company stock worth $2,367,110. 10.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Perimeter Solutions

Hedge funds have recently modified their holdings of the stock. Comerica Bank purchased a new position in shares of Perimeter Solutions in the fourth quarter valued at $38,000. EverSource Wealth Advisors LLC purchased a new position in shares of Perimeter Solutions in the second quarter valued at $42,000. Cullen Frost Bankers Inc. grew its holdings in shares of Perimeter Solutions by 161.2% in the second quarter. Cullen Frost Bankers Inc. now owns 3,124 shares of the company's stock valued at $43,000 after purchasing an additional 1,928 shares in the last quarter. AlphaQuest LLC grew its holdings in shares of Perimeter Solutions by 65.1% in the second quarter. AlphaQuest LLC now owns 8,235 shares of the company's stock valued at $115,000 after purchasing an additional 3,246 shares in the last quarter. Finally, Harbor Investment Advisory LLC grew its holdings in shares of Perimeter Solutions by 25.6% in the first quarter. Harbor Investment Advisory LLC now owns 9,315 shares of the company's stock valued at $94,000 after purchasing an additional 1,899 shares in the last quarter. Hedge funds and other institutional investors own 89.93% of the company's stock.

Perimeter Solutions Company Profile

Perimeter Solutions, SA manufactures and supplies firefighting products and lubricant additives in the United States, Germany, and internationally. It operates in two segments, Fire Safety and Specialty Products. The Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services for federal, state, provincial, local/municipal, and commercial customers.