Perimeter Solutions (NYSE:PRM) Sets New 52-Week High After Earnings Beat

Key Points

• Perimeter Solutions reached a new 52-week high of $17.60 after reporting earnings per share of $0.39, surpassing analyst expectations of $0.28 by $0.11.
• Following the earnings announcement, analysts had mixed reactions, with UBS raising their price target to $20, while Morgan Stanley lowered theirs from $18 to $17.
• Insider activity included the sale of 32,000 shares by Director Vivek Raj, representing a 31.96% decrease in their holdings, contrasted by the acquisition of 254,600 shares by Windacre Partnership Master Fu.

Perimeter Solutions, SA (NYSE:PRM - Get Free Report)'s share price hit a new 52-week high on Friday following a better than expected earnings announcement. The company traded as high as $17.60 and last traded at $17.50, with a volume of 132366 shares traded. The stock had previously closed at $16.86.

The company reported $0.39 earnings per share for the quarter, beating analysts' consensus estimates of $0.28 by $0.11. The business had revenue of $162.64 million during the quarter, compared to analyst estimates of $108.91 million. Perimeter Solutions had a negative return on equity of 4.33% and a net margin of 23.23%.

Analysts Set New Price Targets

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

Insider Buying and Selling

In other news, Director Vivek Raj sold 32,000 shares of the firm's stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $11.70, for a total value of $374,400.00. Following the transaction, the director directly owned 68,132 shares in the company, valued at $797,144.40. This trade represents a 31.96% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, major shareholder Windacre Partnership Master Fu acquired 254,600 shares of Perimeter Solutions stock in a transaction that occurred on Friday, June 27th. The shares were purchased at an average price of $13.98 per share, with a total value of $3,559,308.00. Following the transaction, the insider owned 21,854,600 shares of the company's stock, valued at $305,527,308. The trade was a 1.18% increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders sold 303,094 shares of company stock valued at $3,587,021. 10.00% of the stock is currently owned by insiders.

Institutional Trading of Perimeter Solutions

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. New York State Teachers Retirement System purchased a new stake in Perimeter Solutions in the 1st quarter worth $123,000. Teacher Retirement System of Texas increased its position in shares of Perimeter Solutions by 21.0% during the first quarter. Teacher Retirement System of Texas now owns 249,091 shares of the company's stock worth $2,508,000 after acquiring an additional 43,247 shares during the period. Wealth Enhancement Advisory Services LLC bought a new stake in shares of Perimeter Solutions in the first quarter valued at about $3,479,000. SG Americas Securities LLC raised its stake in Perimeter Solutions by 59.7% in the first quarter. SG Americas Securities LLC now owns 93,811 shares of the company's stock worth $945,000 after buying an additional 35,078 shares in the last quarter. Finally, Oppenheimer Asset Management Inc. boosted its holdings in shares of Perimeter Solutions by 15.6% in the 1st quarter. Oppenheimer Asset Management Inc. now owns 54,573 shares of the company's stock valued at $550,000 after buying an additional 7,347 shares in the last quarter. 89.93% of the stock is owned by hedge funds and other institutional investors.

Perimeter Solutions Trading Up 3.3%

The company has a debt-to-equity ratio of 0.55, a quick ratio of 3.56 and a current ratio of 5.23. The stock has a market capitalization of $2.57 billion, a PE ratio of 22.09 and a beta of 1.96. The company has a 50 day moving average of $14.86 and a two-hundred day moving average of $12.19.

About Perimeter Solutions

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.

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