Zacks Research Upgrades Perimeter Solutions (NYSE:PRM) to Strong-Buy

Key Points

• Zacks Research upgraded Perimeter Solutions (NYSE: PRM) from "hold" to "strong-buy", joining UBS's recent upgrade to "buy" and contributing to a consensus mix of one Strong Buy, two Buys and one Sell with an average price target of $32.50.
• Q4 results beat expectations — PRM reported $0.13 EPS vs. $0.09 consensus and revenue of $102.75M vs. $94.05M, although the company still shows a negative net margin and a negative PE ratio.
• Insider selling and concentrated ownership: a director sold 125,000 shares (part of 450,000 shares sold by insiders in the last 90 days), while institutional investors own roughly 89.9% of the company and insiders about 10%.

Perimeter Solutions (NYSE:PRM - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Tuesday,Zacks.com reports.

Several other equities analysts also recently commented on the company. UBS Group raised Perimeter Solutions from a "neutral" rating to a "buy" rating and upped their target price for the company from $26.00 to $30.00 in a research report on Tuesday, March 31st. Weiss Ratings downgraded Perimeter Solutions from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Monday, March 2nd. Finally, Morgan Stanley set a $35.00 target price on Perimeter Solutions in a research report on Monday, December 15th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Perimeter Solutions presently has an average rating of "Moderate Buy" and an average price target of $32.50.

Perimeter Solutions Price Performance

Shares of NYSE PRM opened at $27.07 on Tuesday. The business's 50 day moving average price is $24.49 and its two-hundred day moving average price is $25.43. The company has a market cap of $4.05 billion, a PE ratio of -19.06 and a beta of 1.90. The company has a quick ratio of 2.42, a current ratio of 3.22 and a debt-to-equity ratio of 0.60. Perimeter Solutions has a twelve month low of $9.56 and a twelve month high of $29.88.

Perimeter Solutions (NYSE:PRM - Get Free Report) last announced its quarterly earnings results on Friday, February 27th. The company reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of $0.09 by $0.04. Perimeter Solutions had a positive return on equity of 17.82% and a negative net margin of 31.61%.The firm had revenue of $102.75 million for the quarter, compared to the consensus estimate of $94.05 million. On average, analysts predict that Perimeter Solutions will post 0.71 EPS for the current year.

Insider Activity at Perimeter Solutions

In other news, Director William N. Thorndike, Jr. sold 125,000 shares of the company's stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $23.37, for a total value of $2,921,250.00. Following the transaction, the director owned 8,735,656 shares of the company's stock, valued at approximately $204,152,280.72. This represents a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders sold a total of 450,000 shares of company stock valued at $10,722,750 over the last 90 days. 10.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Perimeter Solutions

A number of large investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. lifted its stake in Perimeter Solutions by 51.6% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,143 shares of the company's stock worth $31,000 after purchasing an additional 389 shares during the last quarter. GAMMA Investing LLC lifted its stake in Perimeter Solutions by 16.4% during the third quarter. GAMMA Investing LLC now owns 3,577 shares of the company's stock worth $80,000 after purchasing an additional 504 shares during the last quarter. Allworth Financial LP lifted its stake in Perimeter Solutions by 14.1% during the fourth quarter. Allworth Financial LP now owns 4,100 shares of the company's stock worth $113,000 after purchasing an additional 508 shares during the last quarter. Comerica Bank lifted its stake in Perimeter Solutions by 12.2% during the third quarter. Comerica Bank now owns 5,019 shares of the company's stock worth $112,000 after purchasing an additional 547 shares during the last quarter. Finally, Arax Advisory Partners lifted its stake in Perimeter Solutions by 122.8% during the fourth quarter. Arax Advisory Partners now owns 1,047 shares of the company's stock worth $29,000 after purchasing an additional 577 shares during the last quarter. Institutional investors and hedge funds own 89.93% of the company's stock.

Perimeter Solutions Company Profile

Perimeter Solutions Ltd. NYSE: PRM is a global specialty chemicals company focused on delivering performance-driven solutions for the oil and gas, coatings, plastics, water treatment and packaging markets. Established as an independent publicly traded company in December 2019 following its spin-off from NewMarket Corporation, Perimeter Solutions has positioned itself as a leading provider of highly engineered chemical products designed to optimize upstream oil recovery, protect infrastructure and enhance the performance of industrial processes.

The company's core product portfolio spans several key segments.

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