Perimeter Solutions (NYSE:PRM) Sets New 12-Month High - What's Next?

Key Points

• Perimeter Solutions (NYSE: PRM) hit a new 52-week high, trading as high as $34.50 after closing at $33.91 the prior day. The move came on solid volume of about 407,949 shares.
• Recent analyst sentiment has turned more positive, with UBS, Morgan Stanley, Zacks Research, and Wall Street Zen all raising ratings or price targets. The stock now has a consensus Moderate Buy rating and an average price target of $37.00.
• The company recently beat quarterly earnings expectations, reporting $0.06 EPS versus $0.02 expected and revenue of $125.07 million. However, insider selling has been notable, including large sales by Jeffrey Emery and CFO Kyle Sable.

Perimeter Solutions, SA (NYSE:PRM - Get Free Report)'s share price reached a new 52-week high during trading on Thursday . The stock traded as high as $34.50 and last traded at $34.4220, with a volume of 407949 shares traded. The stock had previously closed at $33.91.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on PRM. UBS Group increased their target price on Perimeter Solutions from $30.00 to $34.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. Weiss Ratings upgraded Perimeter Solutions from a "sell (d-)" rating to a "sell (d)" rating in a research report on Monday. Zacks Research upgraded Perimeter Solutions from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 14th. Morgan Stanley increased their target price on Perimeter Solutions from $35.00 to $40.00 and gave the company an "overweight" rating in a research report on Monday. Finally, Wall Street Zen upgraded Perimeter Solutions from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $37.00.

Perimeter Solutions Trading Up 2.4%

The company has a 50 day moving average of $26.04 and a 200 day moving average of $26.51. The company has a debt-to-equity ratio of 1.01, a quick ratio of 2.42 and a current ratio of 3.09. The stock has a market capitalization of $5.66 billion, a price-to-earnings ratio of -25.85 and a beta of 1.93.

Perimeter Solutions (NYSE:PRM - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.06 EPS for the quarter, beating the consensus estimate of $0.02 by $0.04. Perimeter Solutions had a positive return on equity of 18.29% and a negative net margin of 26.93%.The firm had revenue of $125.07 million during the quarter, compared to the consensus estimate of $121.80 million. On average, research analysts predict that Perimeter Solutions, SA will post 1.91 EPS for the current fiscal year.

Insider Activity at Perimeter Solutions

In related news, insider Jeffrey Emery sold 99,963 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $32.92, for a total value of $3,290,781.96. Following the completion of the transaction, the insider directly owned 46,500 shares of the company's stock, valued at approximately $1,530,780. This represents a 68.25% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Kyle Sable sold 150,000 shares of the stock in a transaction on 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 completion of the transaction, the chief financial officer directly owned 20,000 shares of the company's stock, valued at approximately $630,400. This represents a 88.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 796,923 shares of company stock valued at $21,854,961. 13.10% of the stock is owned by insiders.

Institutional Trading of Perimeter Solutions

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. increased its stake in shares of Perimeter Solutions by 51.6% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,143 shares of the company's stock worth $31,000 after acquiring an additional 389 shares during the last quarter. Allworth Financial LP increased its stake in shares of Perimeter Solutions by 14.1% in the 4th quarter. Allworth Financial LP now owns 4,100 shares of the company's stock worth $113,000 after acquiring an additional 508 shares during the last quarter. Comerica Bank increased its stake in shares of Perimeter Solutions by 12.2% in the 3rd quarter. Comerica Bank now owns 5,019 shares of the company's stock worth $112,000 after acquiring an additional 547 shares during the last quarter. Arax Advisory Partners increased its stake in shares of Perimeter Solutions by 122.8% in the 4th quarter. Arax Advisory Partners now owns 1,047 shares of the company's stock worth $29,000 after acquiring an additional 577 shares during the last quarter. Finally, Russell Investments Group Ltd. increased its stake in shares of Perimeter Solutions by 5.5% in the 4th quarter. Russell Investments Group Ltd. now owns 12,691 shares of the company's stock worth $349,000 after acquiring an additional 660 shares during the last quarter. 89.93% of the stock is owned by institutional investors and hedge funds.

About Perimeter Solutions

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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