Perimeter Solutions (NYSE:PRM) Trading Down 10.4% - Time to Sell?

Key Points

• Shares fell 10.4% to about $27.05 on Wednesday, with trading volume down ~69% versus the average session, after closing the prior day at $30.18.
• The company beat quarterly estimates (EPS $0.06 vs. $0.02; revenue $125.07M vs. $121.8M) but still shows a negative net margin (‑31.61%) and a negative PE, signaling ongoing profitability concerns.
• Analyst views are mixed—one Strong Buy, two Buys and one Sell with a consensus “Moderate Buy” target of $32.50—while insiders sold 450,000 shares last quarter (director sold 100,000), and institutional ownership is ~89.9%.

Perimeter Solutions, SA (NYSE:PRM - Get Free Report) shares fell 10.4% on Wednesday . The company traded as low as $27.09 and last traded at $27.0460. 312,502 shares changed hands during trading, a decline of 69% from the average session volume of 1,024,296 shares. The stock had previously closed at $30.18.

Analyst Ratings Changes

A number of equities analysts have commented on PRM shares. UBS Group raised shares of Perimeter Solutions from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $26.00 to $30.00 in a research note on Tuesday, March 31st. Zacks Research raised shares of Perimeter Solutions from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, April 14th. Finally, Weiss Ratings downgraded Perimeter Solutions from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Monday, March 2nd. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $32.50.

Perimeter Solutions Price Performance

The company has a current ratio of 3.22, a quick ratio of 2.42 and a debt-to-equity ratio of 0.60. The stock has a market cap of $4.45 billion, a PE ratio of -19.23 and a beta of 1.93. The company has a fifty day moving average of $25.29 and a 200-day moving average of $26.12.

Perimeter Solutions (NYSE:PRM - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $0.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.04. The firm had revenue of $125.07 million for the quarter, compared to the consensus estimate of $121.80 million. Perimeter Solutions had a positive return on equity of 17.82% and a negative net margin of 31.61%. Sell-side analysts expect that Perimeter Solutions, SA will post 1.47 EPS for the current fiscal year.

Insider Transactions at Perimeter Solutions

In other Perimeter Solutions news, Director William N. Thorndike, Jr. sold 100,000 shares of the stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $23.63, for a total transaction of $2,363,000.00. Following the sale, the director directly owned 8,635,656 shares in the company, valued at $204,060,551.28. This represents a 1.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In the last quarter, insiders have sold 450,000 shares of company stock worth $10,722,750. 13.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Perimeter Solutions

A number of hedge funds have recently bought and sold shares of PRM. Jones Financial Companies Lllp acquired a new stake in Perimeter Solutions in the 3rd quarter valued at about $27,000. Arax Advisory Partners raised its holdings 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 valued at $29,000 after purchasing an additional 577 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings 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 valued at $31,000 after purchasing an additional 389 shares in the last quarter. EverSource Wealth Advisors LLC acquired a new stake in shares of Perimeter Solutions in the 2nd quarter valued at $42,000. Finally, Comerica Bank raised its holdings in shares of Perimeter Solutions by 45.0% in 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 in the last quarter. Institutional investors and hedge funds own 89.93% of the company's stock.

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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