Perimeter Solutions (NYSE:PRM) Shares Gap Down Following Weak Earnings

Key Points

• Perimeter Solutions shares fell sharply after the company reported quarterly EPS of $0.35, missing the $0.43 consensus estimate, while revenue of $213.81 million also came in below expectations.
• Analyst sentiment remains generally positive, with four Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $43, although Zacks Research and Wall Street Zen recently downgraded the stock to Hold.
• Insiders sold 6.39 million shares valued at approximately $217.5 million over the past quarter, while institutional investors own 89.93% of the company.

Perimeter Solutions, SA (NYSE:PRM - Get Free Report)'s stock price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $37.23, but opened at $31.20. Perimeter Solutions shares last traded at $30.8880, with a volume of 648,915 shares changing hands.

The company reported $0.35 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.08). The firm had revenue of $213.81 million during the quarter, compared to the consensus estimate of $216.89 million. Perimeter Solutions had a positive return on equity of 18.29% and a negative net margin of 26.93%.

Analyst Ratings Changes

PRM has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. started coverage on Perimeter Solutions in a research note on Thursday, July 9th. They issued an "overweight" rating and a $50.00 price objective for the company. UBS Group lifted their target price on Perimeter Solutions from $30.00 to $34.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Morgan Stanley boosted their price target on Perimeter Solutions from $35.00 to $40.00 and gave the stock an "overweight" rating in a report on Monday, May 11th. Zacks Research downgraded Perimeter Solutions from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 10th. Finally, Wall Street Zen lowered shares of Perimeter Solutions from a "buy" rating to a "hold" rating in a report on Sunday, July 12th. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $43.00.

Insider Buying and Selling at Perimeter Solutions

In other Perimeter Solutions news, CEO Haitham Khouri sold 117,511 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $31.19, for a total transaction of $3,665,168.09. Following the sale, the chief executive officer directly owned 1,874,615 shares of the company's stock, valued at $58,469,241.85. The trade was a 5.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Jeffrey Emery sold 53,537 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $33.45, for a total value of $1,790,812.65. Following the sale, the insider owned 53,537 shares in the company, valued at approximately $1,790,812.65. This trade represents a 50.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 6,385,514 shares of company stock valued at $217,464,393 over the last quarter. 13.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Perimeter Solutions

Institutional investors have recently modified their holdings of the stock. Comerica Bank increased its position in shares of Perimeter Solutions by 45.0% during the 1st quarter. Comerica Bank now owns 4,267 shares of the company's stock valued at $43,000 after purchasing an additional 1,324 shares during the last quarter. Royal Bank of Canada lifted its position in Perimeter Solutions by 100.0% in the first quarter. Royal Bank of Canada now owns 80,608 shares of the company's stock worth $812,000 after buying an additional 40,294 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Perimeter Solutions by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 79,546 shares of the company's stock worth $801,000 after buying an additional 3,428 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Perimeter Solutions by 4.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 328,188 shares of the company's stock worth $3,305,000 after buying an additional 14,949 shares during the period. Finally, American Century Companies Inc. purchased a new position in Perimeter Solutions during the second quarter worth $2,128,000. 89.93% of the stock is owned by institutional investors.

Perimeter Solutions Price Performance

The company has a debt-to-equity ratio of 1.01, a current ratio of 3.09 and a quick ratio of 1.61. The firm has a market cap of $5.05 billion, a P/E ratio of -23.09 and a beta of 1.90. The stock's 50-day simple moving average is $33.95 and its two-hundred day simple moving average is $29.33.

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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