Primo Brands (NYSE:PRMB) Shares Cross Above 50 Day Moving Average on Analyst Downgrade

Key Points

• Primo Brands shares rose 5.3% and crossed above their 50-day moving average after Royal Bank of Canada raised its price target to $31 while maintaining an outperform rating.
• Analyst sentiment remains positive, with ten Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $27.55.
• CEO Eric Foss purchased 84,000 shares for nearly $2 million, while institutional investors own 87.71% of the company. Primo also exceeded quarterly earnings and revenue estimates, reporting $0.37 EPS and $1.80 billion in revenue.

Shares of Primo Brands Corporation (NYSE:PRMB - Get Free Report) passed above its 50-day moving average during trading on Monday after Royal Bank Of Canada raised their price target on the stock from $28.00 to $31.00. The stock has a 50-day moving average of $20.42 and traded as high as $20.82. Royal Bank Of Canada currently has an outperform rating on the stock. Primo Brands shares last traded at $20.7840, with a volume of 6,719,883 shares traded.

Several other equities analysts have also recently weighed in on the company. TD increased their price target on Primo Brands from $29.00 to $35.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Weiss Ratings raised Primo Brands from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, May 11th. Barclays lifted their price objective on Primo Brands from $27.00 to $29.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. TD Cowen reiterated a "buy" rating on shares of Primo Brands in a research report on Thursday, August 6th. Finally, Wall Street Zen raised Primo Brands from a "sell" rating to a "hold" rating in a report on Saturday, May 23rd. Ten research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $27.55.

Insider Activity at Primo Brands

In other news, CEO Eric Foss bought 84,000 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were bought at an average price of $23.80 per share, for a total transaction of $1,999,200.00. Following the purchase, the chief executive officer owned 573,806 shares in the company, valued at $13,656,582.80. This represents a 17.15% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. 32.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Primo Brands

A number of institutional investors and hedge funds have recently bought and sold shares of PRMB. Allspring Global Investments Holdings LLC grew its position in shares of Primo Brands by 57.9% during the first quarter. Allspring Global Investments Holdings LLC now owns 7,050,888 shares of the company's stock worth $133,050,000 after purchasing an additional 2,585,164 shares in the last quarter. Assenagon Asset Management S.A. lifted its holdings in Primo Brands by 2,881.5% in the 3rd quarter. Assenagon Asset Management S.A. now owns 1,954,180 shares of the company's stock worth $37,227,000 after purchasing an additional 1,888,636 shares in the last quarter. Bank of America Corp DE lifted its holdings in Primo Brands by 41.7% in the 1st quarter. Bank of America Corp DE now owns 6,067,351 shares of the company's stock worth $114,248,000 after purchasing an additional 1,785,259 shares in the last quarter. KBC Group NV boosted its stake in Primo Brands by 49.2% in the 1st quarter. KBC Group NV now owns 5,041,625 shares of the company's stock worth $94,934,000 after purchasing an additional 1,661,569 shares during the period. Finally, Neumeier Poma Investment Counsel LLC bought a new position in Primo Brands in the 2nd quarter worth approximately $21,404,185. 87.71% of the stock is owned by institutional investors.

Primo Brands Stock Up 5.3%

The company has a current ratio of 1.05, a quick ratio of 0.86 and a debt-to-equity ratio of 1.71. The company has a 50 day simple moving average of $20.42 and a two-hundred day simple moving average of $21.40. The firm has a market capitalization of $7.53 billion, a P/E ratio of 79.94, a P/E/G ratio of 1.95 and a beta of 0.71.

Primo Brands (NYSE:PRMB - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.32 by $0.05. The firm had revenue of $1.80 billion for the quarter, compared to the consensus estimate of $1.77 billion. Primo Brands had a net margin of 1.49% and a return on equity of 14.24%. The company's quarterly revenue was up 3.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.36 earnings per share. On average, equities analysts predict that Primo Brands Corporation will post 1.27 EPS for the current fiscal year.

About Primo Brands

Primo Brands Corporation is a beverage company focused on providing water and hydration products across North America. The company offers bottled water, water dispensers, refill services, filtration products and other beverage options for households, businesses and retail customers.

Its portfolio includes well-known regional and national water brands such as Poland Spring, Deer Park, Ice Mountain, Arrowhead, Ozarka, Zephyrhills, Pure Life and Primo. Products are distributed through retail stores, direct delivery, e-commerce and workplace and residential water services.

Primo Brands was created through the combination of Primo Water Corporation and BlueTriton Brands, a transaction completed in 2024.

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