Primo Brands (NYSE:PRMB) Trading Down 5% - What's Next?

Key Points

• Primo Brands' stock price fell by 5% on Monday, closing at $22.84, significantly declining from an average trading volume of 5.2 million shares to just 2.7 million shares.
• Analyst ratings are varied, with a consensus target price of $36.18; nine analysts recommend a Buy, while only one has rated it as Sell, indicating a generally positive outlook.
• The company missed its quarterly earnings estimate, reporting $0.36 EPS against an expected $0.41, and has set its FY 2025 guidance at 1.13 EPS.

Shares of Primo Brands Corporation (NYSE:PRMB - Get Free Report) dropped 5% during trading on Monday . The stock traded as low as $23.01 and last traded at $22.84. Approximately 2,736,723 shares traded hands during mid-day trading, a decline of 47% from the average daily volume of 5,212,664 shares. The stock had previously closed at $24.03.

Wall Street Analysts Forecast Growth

PRMB has been the topic of several recent research reports. Mizuho dropped their price objective on shares of Primo Brands from $43.00 to $40.00 and set an "outperform" rating on the stock in a report on Wednesday, August 20th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $26.00 target price on shares of Primo Brands in a research note on Friday, August 8th. Morgan Stanley decreased their target price on shares of Primo Brands from $38.00 to $35.00 and set an "overweight" rating for the company in a research note on Monday, August 11th. TD Securities decreased their target price on shares of Primo Brands from $48.00 to $35.00 and set a "buy" rating for the company in a research note on Friday, August 8th. Finally, Royal Bank Of Canada decreased their target price on shares of Primo Brands from $40.00 to $37.00 and set an "outperform" rating for the company in a research note on Friday, August 8th. Nine equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Primo Brands presently has an average rating of "Moderate Buy" and an average target price of $36.18.

Primo Brands Price Performance

The company has a quick ratio of 0.88, a current ratio of 1.06 and a debt-to-equity ratio of 1.55. The stock's 50-day simple moving average is $25.71 and its two-hundred day simple moving average is $29.77. The company has a market capitalization of $8.39 billion, a price-to-earnings ratio of -204.27, a PEG ratio of 0.59 and a beta of 0.76.

Primo Brands (NYSE:PRMB - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported $0.36 earnings per share for the quarter, missing analysts' consensus estimates of $0.41 by ($0.05). The company had revenue of $1.73 billion for 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%.The business's revenue was up 31.6% compared to the same quarter last year. Primo Brands has set its FY 2025 guidance at EPS. Equities research analysts predict that Primo Brands Corporation will post 1.13 earnings per share for the current year.

Primo Brands Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Thursday, August 21st were given a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date was Thursday, August 21st. Primo Brands's dividend payout ratio is -363.64%.

Insider Activity

In other Primo Brands news, CEO Robbert Rietbroek bought 8,285 shares of Primo Brands stock in a transaction dated Wednesday, August 13th. The stock was acquired at an average cost of $24.12 per share, for a total transaction of $199,834.20. Following the completion of the transaction, the chief executive officer directly owned 586,349 shares of the company's stock, valued at approximately $14,142,737.88. This represents a 1.43% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Steven P. Stanbrook bought 12,400 shares of Primo Brands stock in a transaction dated Tuesday, August 12th. The stock was acquired at an average price of $24.04 per share, with a total value of $298,096.00. Following the completion of the transaction, the director directly owned 125,025 shares of the company's stock, valued at approximately $3,005,601. The trade was a 11.01% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders acquired 24,685 shares of company stock worth $595,770 over the last three months. Insiders own 58.40% of the company's stock.

Institutional Investors Weigh In On Primo Brands

Hedge funds have recently modified their holdings of the business. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Primo Brands in the second quarter valued at about $26,000. IFP Advisors Inc purchased a new stake in shares of Primo Brands in the first quarter valued at about $40,000. Versant Capital Management Inc grew its holdings in shares of Primo Brands by 286.7% in the first quarter. Versant Capital Management Inc now owns 1,222 shares of the company's stock valued at $43,000 after purchasing an additional 906 shares during the period. New Age Alpha Advisors LLC purchased a new stake in shares of Primo Brands in the first quarter valued at about $43,000. Finally, Parallel Advisors LLC grew its holdings in shares of Primo Brands by 225.5% in the first quarter. Parallel Advisors LLC now owns 1,302 shares of the company's stock valued at $46,000 after purchasing an additional 902 shares during the period. 87.71% of the stock is currently owned by institutional investors and hedge funds.

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.