Primo Brands (NYSE:PRMB) Shares Up 12.7% - Should You Buy?

Key Points

• Shares rose 12.7% — Primo Brands (NYSE:PRMB) traded up to $22.31 on Thursday on lighter-than-normal volume (~1.64M vs. a 5.34M average), following recent news and analyst activity.
• Quarterly results were mixed: the company missed on EPS ($0.23 vs. $0.24 est.) but beat revenue ($1.63B vs. $1.58B); fundamentals show a slim 0.9% net margin, high P/E (~148), low liquidity (quick ratio 0.78) and debt/equity of 1.70.
• Analysts maintain a consensus "Moderate Buy" with a $25.82 average target (recent targets range ~$19–$28), and Primo announced a $0.12 quarterly dividend (2.2% yield) despite a 320% payout ratio.

Primo Brands Corporation (NYSE:PRMB - Get Free Report) was up 12.7% during trading on Thursday . The stock traded as high as $22.20 and last traded at $22.3050. Approximately 1,635,189 shares were traded during trading, a decline of 69% from the average daily volume of 5,339,026 shares. The stock had previously closed at $19.80.

Analyst Ratings Changes

Several equities research analysts have commented on PRMB shares. Weiss Ratings upgraded shares of Primo Brands from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, March 23rd. Royal Bank Of Canada set a $28.00 target price on shares of Primo Brands in a research report on Thursday, April 9th. Barclays decreased their target price on shares of Primo Brands from $27.00 to $24.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 14th. Zacks Research upgraded shares of Primo Brands from a "strong sell" rating to a "hold" rating in a research report on Friday, March 6th. Finally, Deutsche Bank Aktiengesellschaft decreased their target price on shares of Primo Brands from $24.00 to $19.00 and set a "hold" rating on the stock in a research report on Monday, March 30th. Nine equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $25.82.

Primo Brands Price Performance

The company has a quick ratio of 0.78, a current ratio of 0.95 and a debt-to-equity ratio of 1.70. The company has a market cap of $8.07 billion, a price-to-earnings ratio of 148.09, a price-to-earnings-growth ratio of 1.62 and a beta of 0.66. The company has a fifty day simple moving average of $20.08 and a two-hundred day simple moving average of $18.72.

Primo Brands (NYSE:PRMB - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.23 earnings per share for the quarter, missing the consensus estimate of $0.24 by ($0.01). The firm had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.58 billion. Primo Brands had a net margin of 0.90% and a return on equity of 14.52%. The firm's revenue for the quarter was up .8% on a year-over-year basis. During the same period last year, the company posted $0.29 EPS. On average, equities research analysts anticipate that Primo Brands Corporation will post 1.28 earnings per share for the current fiscal year.

Primo Brands Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Thursday, June 4th will be issued a $0.12 dividend. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $0.48 annualized dividend and a yield of 2.2%. Primo Brands's dividend payout ratio is 320.00%.

Institutional Trading of Primo Brands

Large investors have recently made changes to their positions in the stock. Caption Management LLC acquired a new stake in shares of Primo Brands during the third quarter valued at $27,000. LRI Investments LLC boosted its stake in shares of Primo Brands by 203.1% during 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. Picton Mahoney Asset Management boosted its stake in shares of Primo Brands by 65.2% during the fourth quarter. Picton Mahoney Asset Management now owns 2,153 shares of the company's stock valued at $35,000 after acquiring an additional 850 shares during the last quarter. Quarry LP boosted its stake in shares of Primo Brands by 516.6% during the fourth quarter. Quarry LP now owns 2,380 shares of the company's stock valued at $39,000 after acquiring an additional 1,994 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd boosted its stake in shares of Primo Brands by 21,481.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,374 shares of the company's stock valued at $39,000 after acquiring an additional 2,363 shares during the last quarter. Institutional investors and hedge funds own 87.71% of the company's stock.

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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