Primo Brands (NYSE:PRMB) Shares Gap Down on Disappointing Earnings

Key Points

• Primo Brands Corporation's shares gapped down significantly from $26.41 to $23.99 before opening on Thursday, reflecting a current trading price of $23.51 with a substantial trading volume.
• Recent analyst reports have adjusted price targets, with Bank of America lowering its target from $42.00 to $39.00, highlighting a mixed outlook while maintaining a "buy" rating.
• Insider transactions show a significant sale by Director Tony W. Lee of over 50 million shares, reducing his ownership by 30.36%, which may raise concerns among investors.

Primo Brands Corporation (NYSE:PRMB - Get Free Report) shares gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $26.41, but opened at $23.99. Primo Brands shares last traded at $23.51, with a volume of 3,437,327 shares.

The company reported $0.36 EPS for the quarter, missing analysts' consensus estimates of $0.41 by ($0.05). The business had revenue of $1.73 billion during the quarter, compared to analyst estimates of $1.83 billion. Primo Brands had a positive return on equity of 9.64% and a negative net margin of 1.20%. Primo Brands's quarterly revenue was up 31.6% compared to the same quarter last year.

Primo Brands Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Thursday, August 21st will be given a dividend of $0.10 per share. The ex-dividend date is Thursday, August 21st. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.7%. Primo Brands's payout ratio is presently -363.64%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. Royal Bank Of Canada dropped their target price on Primo Brands from $40.00 to $37.00 and set an "outperform" rating for the company in a research report on Friday. Bank of America dropped their target price on Primo Brands from $42.00 to $39.00 and set a "buy" rating for the company in a research report on Friday, July 11th. Mizuho began coverage on Primo Brands in a report on Monday, May 12th. They issued an "outperform" rating and a $43.00 price objective for the company. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $26.00 price objective on shares of Primo Brands in a report on Friday. Finally, Barclays dropped their price objective on Primo Brands from $40.00 to $38.00 and set an "overweight" rating for the company in a report on Monday, June 16th. One analyst has rated the stock with a hold rating and nine have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $37.60.

Institutional Trading of Primo Brands

Several large investors have recently bought and sold shares of PRMB. Boston Partners lifted its holdings in Primo Brands by 9,613.2% during the 1st quarter. Boston Partners now owns 7,117,540 shares of the company's stock worth $252,552,000 after buying an additional 7,044,263 shares during the period. Victory Capital Management Inc. acquired a new position in shares of Primo Brands in the 1st quarter valued at about $184,225,000. Eminence Capital LP acquired a new position in shares of Primo Brands in the 4th quarter valued at about $145,670,000. Vanguard Group Inc. increased its position in Primo Brands by 28.7% in the 1st quarter. Vanguard Group Inc. now owns 19,704,538 shares of the company's stock valued at $699,314,000 after buying an additional 4,389,327 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. bought a new stake in Primo Brands in the 4th quarter valued at about $128,982,000. 87.71% of the stock is owned by institutional investors and hedge funds.

Primo Brands Price Performance

The firm has a market capitalization of $9.00 billion, a P/E ratio of -218.98, a price-to-earnings-growth ratio of 0.45 and a beta of 0.72. The business has a 50-day moving average of $28.95 and a 200 day moving average of $31.53. The company has a current ratio of 1.06, a quick ratio of 0.88 and a debt-to-equity ratio of 1.55.

Primo Brands Company Profile

Primo Brands Corp. is a branded beverage company, which focuses on healthy hydration. It delivers sustainably and domestically sourced diversified offerings across products, formats, channels, price points and consumer occasions, distributed in the United States and Canada. The company provides water filtration units for home and business consumers across North America.