Perimeter Solutions (NYSE:PRM) Share Price Breaks Above 50 Day Moving Average After Earnings Miss

Perimeter Solutions, SA (NYSE:PRM) shares passed above its 50 day moving average during trading on Friday following a stronger than expected earnings report. The stock has a 50 day moving average of $29.02 and traded as high as $29.94. Perimeter Solutions shares last traded at $29.5390, with a volume of 2,151,445 shares.

The company reported $0.85 earnings per share for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.11). The company had revenue of $389.87 million during the quarter, compared to analyst estimates of $381.45 million. Perimeter Solutions had a negative net margin of 44.86% and a positive return on equity of 19.15%.

Key Perimeter Solutions News

Here are the key news stories impacting Perimeter Solutions this week:

• Positive Sentiment: Third-quarter revenue was $389.9 million, above the roughly $381.5 million analyst estimate. Adjusted EBITDA was $223.5 million, which the company attributed to continued execution on its value drivers and recent acquisitions. Company earnings release
• Neutral Sentiment: The company outlined an annual capital-spending plan of $30 million to $40 million. This signals continued investment, though it also means ongoing capital requirements. Capex plan and PDI outlook
• Negative Sentiment: Adjusted EPS of $0.85 fell short of analyst estimates of $0.95–$0.96, tempering the revenue beat. Management also expects a period of “distressed adjusted EBITDA” at PDI, a business-level concern investors may monitor. Q3 earnings miss

Wall Street Analyst Weigh In

PRM has been the subject of a number of analyst reports. JPMorgan Chase & Co. reduced their price target on Perimeter Solutions from $45.00 to $40.00 and set an “overweight” rating for the company in a report on Tuesday, October 13th. UBS Group cut their price objective on Perimeter Solutions from $42.00 to $38.00 and set a “buy” rating for the company in a research report on Tuesday, September 29th. Weiss Ratings raised shares of Perimeter Solutions from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, October 19th. Zacks Research raised Perimeter Solutions from a “strong sell” rating to a “hold” rating in a research report on Thursday, October 15th. Finally, Wall Street Zen downgraded shares of Perimeter Solutions from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $41.50.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Principal Financial Group Inc. increased its holdings in shares of Perimeter Solutions by 15.0% in the first quarter. Principal Financial Group Inc. now owns 12,513,159 shares of the company’s stock worth $305,572,000 after purchasing an additional 1,634,158 shares during the period. Wellington Management Group LLP purchased a new position in Perimeter Solutions in the 2nd quarter worth about $22,162,000. Renaissance Technologies LLC lifted its stake in shares of Perimeter Solutions by 2,744.1% in the 1st quarter. Renaissance Technologies LLC now owns 591,257 shares of the company’s stock worth $14,438,000 after purchasing an additional 570,468 shares during the period. Conestoga Capital Advisors LLC raised its position in shares of Perimeter Solutions by 101.9% during the 3rd quarter. Conestoga Capital Advisors LLC now owns 1,081,985 shares of the company’s stock valued at $28,478,000 after purchasing an additional 546,020 shares during the period. Finally, Weitz Investment Management Inc. purchased a new stake in shares of Perimeter Solutions in the second quarter worth about $16,072,000. Hedge funds and other institutional investors own 89.93% of the company’s stock.

Perimeter Solutions Price Performance

The company has a current ratio of 1.57, a quick ratio of 0.93 and a debt-to-equity ratio of 1.19. The stock has a market capitalization of $4.84 billion, a P/E ratio of 227.24 and a beta of 1.91. The stock has a 50 day moving average of $29.02 and a 200-day moving average of $29.59.

Perimeter Solutions Company Profile

Perimeter Solutions, Inc (NYSE:PRM) is a specialty chemicals and fire-safety company that develops and supplies products used to prevent, control and suppress fires, as well as chemicals used in industrial applications. Its operations are organized primarily around fire-safety products and performance chemicals.

The company’s fire-safety portfolio includes PHOS-CHEK-branded wildfire retardants, firefighting foams, gels and other suppression products. These solutions are used by government agencies, fire departments, aviation and industrial customers, and other organizations involved in wildfire response, emergency preparedness and fire protection.

Perimeter Solutions also produces phosphorus-based specialty chemicals, including phosphorus pentasulfide, which is used in applications such as lubricant additives and other industrial processes.