Primo Brands (NYSE:PRMB) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Primo Brands shares jumped after the company reported quarterly EPS of $0.37, beating estimates by $0.05, while revenue reached $1.80 billion versus the $1.77 billion consensus. Revenue increased 3.8% year over year.
• The company declared a quarterly dividend of $0.12 per share, equivalent to an annualized $0.48 payout and a 1.9% yield.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $26.36; Barclays and JPMorgan recently raised their targets to $27 and $29, respectively.

Shares of Primo Brands Corporation (NYSE:PRMB - Get Free Report) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $23.29, but opened at $25.79. Primo Brands shares last traded at $24.81, with a volume of 548,390 shares changing hands.

The company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.32 by $0.05. Primo Brands had a net margin of 0.88% and a return on equity of 13.98%. The company had revenue of $1.80 billion for the quarter, compared to analysts' expectations of $1.77 billion. During the same period last year, the firm earned $0.36 earnings per share. The business's revenue for the quarter was up 3.8% on a year-over-year basis.

Primo Brands Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th will be paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Monday, August 24th. Primo Brands's dividend payout ratio (DPR) is 342.86%.

Analyst Ratings Changes

A number of analysts have recently weighed in on PRMB shares. Wall Street Zen upgraded Primo Brands from a "sell" rating to a "hold" rating in a research report on Saturday, May 23rd. Barclays raised their price target on Primo Brands from $25.00 to $27.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 21st. Royal Bank Of Canada set a $28.00 price objective on shares of Primo Brands in a research report on Thursday, April 9th. Weiss Ratings upgraded shares of Primo Brands from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, May 11th. Finally, JPMorgan Chase & Co. raised their target price on shares of Primo Brands from $26.00 to $29.00 and gave the company an "overweight" rating in a report on Thursday, July 16th. Nine investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $26.36.

Hedge Funds Weigh In On Primo Brands

Several hedge funds and other institutional investors have recently modified their holdings of the business. Caption Management LLC bought a new stake in shares of Primo Brands during the 3rd quarter worth $27,000. Harbor Investment Advisory LLC bought a new position in Primo Brands in the second quarter valued at about $37,000. LRI Investments LLC grew its position in Primo Brands by 203.1% in the fourth quarter. LRI Investments LLC now owns 1,949 shares of the company's stock valued at $32,000 after acquiring an additional 1,306 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in Primo Brands by 76.9% during the first quarter. EverSource Wealth Advisors LLC now owns 1,962 shares of the company's stock worth $37,000 after acquiring an additional 853 shares in the last quarter. Finally, Picton Mahoney Asset Management raised its stake in Primo Brands by 65.2% during the fourth quarter. Picton Mahoney Asset Management now owns 2,153 shares of the company's stock worth $35,000 after acquiring an additional 850 shares in the last quarter. Institutional investors own 87.71% of the company's stock.

Primo Brands Price Performance

The stock has a market cap of $9.17 billion, a P/E ratio of 180.57, a PEG ratio of 1.89 and a beta of 0.74. The company has a debt-to-equity ratio of 1.72, a current ratio of 0.98 and a quick ratio of 0.79. The business's fifty day moving average price is $23.99 and its 200 day moving average price is $21.54.

Primo Brands Company Profile

Primo Brands NYSE: PRMB is a consumer packaged beverage company that was established as an independent entity following a corporate spin‐off in 2023. The company specializes in the production, marketing and distribution of a broad portfolio of bottled water products, including purified, mineral and sparkling varieties. Through its focus on quality control and innovation, Primo Brands aims to deliver clean, great-tasting water in formats tailored to both at-home consumption and on-the-go lifestyles.

Its product range spans multi-serve and single-serve bottles, aluminum cans and other eco-friendly packaging solutions.

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