Perimeter Solutions (NYSE:PRM) Shares Down 5% - What's Next?

Key Points

• Perimeter Solutions shares fell 5% to about $30.05, with trading volume down 65% versus the average daily volume.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold” with a $41.75 price target, while several firms recently downgraded the stock, including one “Strong Sell” rating.
• The company missed quarterly expectations, reporting $0.35 EPS versus $0.43 expected and revenue of $213.81 million versus $216.89 million expected; insiders have also sold roughly $195.6 million in shares over the past 90 days.

Perimeter Solutions, SA (NYSE:PRM - Get Free Report) shares were down 5% during mid-day trading on Tuesday . The stock traded as low as $30.18 and last traded at $30.0450. 454,498 shares traded hands during trading, a decline of 65% from the average daily volume of 1,295,026 shares. The stock had previously closed at $31.63.

Wall Street Analysts Forecast Growth

PRM has been the subject of a number of research analyst reports. Wall Street Zen lowered shares of Perimeter Solutions from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. JPMorgan Chase & Co. dropped their target price on shares of Perimeter Solutions from $50.00 to $45.00 and set an "overweight" rating on the stock in a report on Monday, August 3rd. CJS Securities began coverage on shares of Perimeter Solutions in a research report on Tuesday, June 9th. They issued a "market outperform" rating and a $48.00 target price for the company. Weiss Ratings lowered shares of Perimeter Solutions from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, August 12th. Finally, Zacks Research cut Perimeter Solutions from a "hold" rating to a "strong sell" rating in a report on Monday, August 10th. Four equities research analysts have rated the stock with a Buy rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $41.75.

Perimeter Solutions Stock Performance

The company has a market cap of $4.92 billion, a P/E ratio of -13.49 and a beta of 1.90. The business's 50 day simple moving average is $32.78 and its 200 day simple moving average is $30.74. The company has a current ratio of 1.57, a quick ratio of 0.93 and a debt-to-equity ratio of 1.19.

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

Insider Transactions at Perimeter Solutions

In related news, major shareholder Windacre Partnership Llc sold 1,875,000 shares of the business's stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $33.90, for a total value of $63,562,500.00. Following the transaction, the insider directly owned 16,148,621 shares of the company's stock, valued at approximately $547,438,251.90. The trade was a 10.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Over the last 90 days, insiders sold 5,705,979 shares of company stock worth $195,617,982. 13.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Perimeter Solutions

Several hedge funds have recently modified their holdings of PRM. Principal Financial Group Inc. grew its stake 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 valued at $305,572,000 after acquiring an additional 1,634,158 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Perimeter Solutions by 0.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,763,465 shares of the company's stock valued at $116,286,000 after purchasing an additional 27,643 shares during the last quarter. Janus Henderson Group PLC boosted its holdings in shares of Perimeter Solutions by 8.6% during the 1st quarter. Janus Henderson Group PLC now owns 4,007,536 shares of the company's stock valued at $97,863,000 after purchasing an additional 315,763 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Perimeter Solutions by 3.7% during the fourth quarter. Geode Capital Management LLC now owns 3,421,820 shares of the company's stock valued at $94,218,000 after purchasing an additional 122,435 shares in the last quarter. Finally, Senator Investment Group LP increased its holdings in shares of Perimeter Solutions by 11.8% in the fourth quarter. Senator Investment Group LP now owns 2,348,000 shares of the company's stock worth $64,640,000 after purchasing an additional 248,000 shares during the last quarter. Hedge funds and other institutional investors own 89.93% of the company's stock.

About Perimeter Solutions

Perimeter Solutions, Inc is a specialty chemicals and fire-safety company that develops, manufactures and supplies products used in wildfire control, industrial fire protection and chemical applications. The company serves customers across North America and international markets through a portfolio of fire-safety and specialty chemical products.

Its fire-safety business provides firefighting foams, fire retardants and related solutions for wildland firefighting, aviation, military, industrial and municipal applications.

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