Perimeter Solutions (NYSE:PRM) Shares Up 5.1% - Should You Buy?

Key Points

• Perimeter Solutions' stock price increased by 5.1%, rising to a last traded price of $23.12, although trading volume fell significantly compared to average sessions.
• Analyst ratings on the stock are mixed, with two analysts giving a "Buy" rating and one a "Hold" rating, while UBS Group has raised the price target to $25.00.
• The company reported strong earnings, with an EPS of $0.39 for the last quarter, surpassing analyst expectations, and had a revenue of $162.64 million compared to projections of $108.91 million.

Perimeter Solutions, SA (NYSE:PRM - Get Free Report)'s share price shot up 5.1% during trading on Friday . The company traded as high as $23.50 and last traded at $23.12. 340,342 shares changed hands during mid-day trading, a decline of 70% from the average session volume of 1,149,490 shares. The stock had previously closed at $21.99.

Analyst Upgrades and Downgrades

Several brokerages have commented on PRM. Weiss Ratings reissued a "hold (c-)" rating on shares of Perimeter Solutions in a report on Wednesday, October 8th. UBS Group raised their price target on shares of Perimeter Solutions from $21.00 to $25.00 and gave the company a "buy" rating in a report on Tuesday, September 30th. Wall Street Zen downgraded shares of Perimeter Solutions from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. Finally, Morgan Stanley reissued an "overweight" rating on shares of Perimeter Solutions in a report on Friday. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $25.00.

Perimeter Solutions Price Performance

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 company has a market capitalization of $3.38 billion, a P/E ratio of 53.75 and a beta of 1.98. The business's fifty day moving average price is $21.26 and its 200-day moving average price is $15.77.

Perimeter Solutions (NYSE:PRM - Get Free Report) last issued 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. The company had revenue of $162.64 million for the quarter, compared to analysts' expectations of $108.91 million. Perimeter Solutions had a net margin of 13.05% and a negative return on equity of 1.11%. As a group, sell-side analysts predict that Perimeter Solutions, SA will post 0.71 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Jeffrey Emery sold 300,000 shares of the business's stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $22.28, for a total transaction of $6,684,000.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Vivek Raj sold 25,000 shares of the business's stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $22.45, for a total transaction of $561,250.00. Following the sale, the director directly owned 121,701 shares in the company, valued at $2,732,187.45. The trade was a 17.04% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 365,000 shares of company stock worth $8,127,250 in the last 90 days. 10.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On Perimeter Solutions

Several hedge funds have recently bought and sold shares of PRM. Pacer Advisors Inc. bought a new position in shares of Perimeter Solutions in the first quarter worth approximately $13,743,000. Alpha Wave Global LP bought a new position in shares of Perimeter Solutions in the second quarter worth approximately $11,155,000. Alyeska Investment Group L.P. bought a new position in shares of Perimeter Solutions in the first quarter worth approximately $8,056,000. Raymond James Financial Inc. lifted its stake in shares of Perimeter Solutions by 364.0% in the first quarter. Raymond James Financial Inc. now owns 926,084 shares of the company's stock worth $9,326,000 after buying an additional 726,484 shares in the last quarter. Finally, Bank of America Corp DE lifted its stake in shares of Perimeter Solutions by 35.8% in the second quarter. Bank of America Corp DE now owns 2,274,018 shares of the company's stock worth $31,654,000 after buying an additional 599,972 shares in the last quarter. Institutional investors own 89.93% of the company's stock.

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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