Perimeter Solutions, SA (NYSE:PRM) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analysts collectively rate Perimeter Solutions “Hold.” Two analysts recommend selling and four recommend buying, with an average 12-month price target of $41.75 versus the reported share price of $31.48.
• Recent earnings fell short of expectations. The company reported quarterly EPS of $0.35, below the $0.43 consensus estimate, while revenue of $213.81 million also missed forecasts.
• Insider selling contrasts with strong institutional ownership. Insiders sold 5.7 million shares worth approximately $195.6 million over three months, while institutional investors and hedge funds own about 89.93% of the stock.

Perimeter Solutions, SA (NYSE:PRM - Get Free Report) has received a consensus recommendation of "Hold" from the six brokerages that are currently covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell rating and four have assigned a buy rating to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $41.75.

PRM has been the subject of a number of research reports. Wall Street Zen cut shares of Perimeter Solutions from a "buy" rating to a "hold" rating in a report on Sunday, July 12th. Weiss Ratings lowered Perimeter Solutions from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, August 12th. JPMorgan Chase & Co. dropped their price target on Perimeter Solutions from $50.00 to $45.00 and set an "overweight" rating on the stock in a research report on Monday, August 3rd. Zacks Research downgraded Perimeter Solutions from a "hold" rating to a "strong sell" rating in a research note on Monday, August 10th. Finally, Morgan Stanley increased their price objective on Perimeter Solutions from $35.00 to $40.00 and gave the stock an "overweight" rating in a research report on Monday, May 11th.

Insider Activity at Perimeter Solutions

In related news, major shareholder Windacre Partnership Llc sold 1,875,000 shares of the stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $33.90, for a total transaction of $63,562,500.00. Following the completion of the sale, the insider directly owned 16,148,621 shares of the company's stock, valued at $547,438,251.90. This trade represents a 10.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders sold a total of 5,705,979 shares of company stock worth $195,617,982 in the last three months. 13.10% of the stock is owned by corporate insiders.

Institutional Trading of Perimeter Solutions

Hedge funds have recently made changes to their positions in the company. Balance Capital Partners L.P. acquired a new position in shares of Perimeter Solutions during the fourth quarter worth about $69,115,000. Principal Financial Group Inc. raised its holdings in Perimeter Solutions by 15.0% during the first quarter. Principal Financial Group Inc. now owns 12,513,159 shares of the company's stock worth $305,572,000 after purchasing an additional 1,634,158 shares in the last quarter. Janus Henderson Group PLC lifted its position in Perimeter Solutions by 54.9% in the fourth quarter. Janus Henderson Group PLC now owns 3,691,773 shares of the company's stock valued at $101,634,000 after purchasing an additional 1,308,602 shares during the period. Invesco Ltd. lifted its position in Perimeter Solutions by 157.3% in the fourth quarter. Invesco Ltd. now owns 1,294,686 shares of the company's stock valued at $35,643,000 after purchasing an additional 791,558 shares during the period. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in Perimeter Solutions by 50.4% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,132,167 shares of the company's stock valued at $47,739,000 after purchasing an additional 714,816 shares in the last quarter. Institutional investors and hedge funds own 89.93% of the company's stock.

Perimeter Solutions Stock Performance

Shares of Perimeter Solutions stock opened at $31.48 on Friday. The firm's fifty day simple moving average is $34.35 and its 200-day simple moving average is $29.92. The stock has a market capitalization of $5.15 billion, a price-to-earnings ratio of -14.12 and a beta of 1.91. Perimeter Solutions has a 12 month low of $18.68 and a 12 month high of $38.17. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.57 and a quick ratio of 0.93.

Perimeter Solutions (NYSE:PRM - Get Free Report) last released its quarterly earnings results on Friday, July 31st. The company reported $0.35 EPS for the quarter, missing the consensus estimate of $0.43 by ($0.08). Perimeter Solutions had a negative net margin of 44.86% and a positive return on equity of 19.15%. The business had revenue of $213.81 million during the quarter, compared to analysts' expectations of $216.89 million. As a group, equities analysts forecast that Perimeter Solutions will post 1.54 earnings per share for the current year.

About Perimeter Solutions

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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