Perimeter Solutions (NYSE:PRM) Sets New 52-Week High - Should You Buy?

Key Points

• Perimeter Solutions (NYSE:PRM) hit a new 52‑week high near $30 (last $30.02) on Wednesday with ~101,363 shares traded; the company has a market cap of ~$4.55B and a negative P/E (−21.45).
• Analysts are mixed but leaning positive: the consensus rating is Moderate Buy with an average price target of $32.50 after upgrades from Zacks and UBS, though Weiss issued a sell downgrade.
• The company beat its latest quarterly estimates (EPS $0.13 vs. $0.09; revenue $102.75M vs. $94.05M) but reported a negative net margin (−31.61%); insiders have sold 450,000 shares in the past 90 days while institutional ownership is roughly 89.9%.

Perimeter Solutions, SA (NYSE:PRM - Get Free Report) shares reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $29.97 and last traded at $30.02, with a volume of 101363 shares trading hands. The stock had previously closed at $29.39.

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. Zacks Research raised Perimeter Solutions from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, April 14th. Weiss Ratings cut shares of Perimeter Solutions from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Monday, March 2nd. Finally, UBS Group raised shares of Perimeter Solutions from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $26.00 to $30.00 in a research note on Tuesday, March 31st. One 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 company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $32.50.

Perimeter Solutions Stock Up 3.7%

The company has a debt-to-equity ratio of 0.60, a quick ratio of 2.42 and a current ratio of 3.22. The business has a 50 day simple moving average of $24.62 and a 200-day simple moving average of $25.63. The firm has a market capitalization of $4.55 billion, a price-to-earnings ratio of -21.45 and a beta of 1.90.

Perimeter Solutions (NYSE:PRM - Get Free Report) last announced its quarterly earnings data on Friday, February 27th. The company reported $0.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.09 by $0.04. The firm had revenue of $102.75 million during the quarter, compared to analyst estimates of $94.05 million. Perimeter Solutions had a negative net margin of 31.61% and a positive return on equity of 17.82%. On average, equities analysts expect that Perimeter Solutions, SA will post 1.47 EPS for the current year.

Insider Activity

In related news, Director William N. Thorndike, Jr. sold 125,000 shares of the business's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $23.37, for a total transaction of $2,921,250.00. Following the sale, the director owned 8,735,656 shares of the company's stock, valued at approximately $204,152,280.72. The trade was a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders sold a total of 450,000 shares of company stock worth $10,722,750 over the last 90 days. Company insiders own 10.00% of the company's stock.

Hedge Funds Weigh In On Perimeter Solutions

Several hedge funds have recently added to or reduced their stakes in PRM. Arax Advisory Partners lifted its position in shares of Perimeter Solutions by 122.8% in the fourth quarter. Arax Advisory Partners now owns 1,047 shares of the company's stock valued at $29,000 after acquiring an additional 577 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Perimeter Solutions by 51.6% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,143 shares of the company's stock worth $31,000 after purchasing an additional 389 shares in the last quarter. Jones Financial Companies Lllp purchased a new position in Perimeter Solutions in the 3rd quarter worth approximately $27,000. TD Private Client Wealth LLC boosted its stake in shares of Perimeter Solutions by 1,450.0% in the third quarter. TD Private Client Wealth LLC now owns 2,108 shares of the company's stock valued at $47,000 after purchasing an additional 1,972 shares during the period. Finally, Larson Financial Group LLC grew its stake in shares of Perimeter Solutions by 55.7% during the fourth quarter. Larson Financial Group LLC now owns 2,514 shares of the company's stock valued at $69,000 after acquiring an additional 899 shares in the last quarter. 89.93% of the stock is currently owned by hedge funds and other institutional investors.

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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