Primo Brands Target of Unusually Large Options Trading (NYSE:PRMB)

Primo Brands Corporation (NYSE:PRMB) was the recipient of unusually large options trading activity on Monday. Investors purchased 4,057 call options on the company. This is an increase of 93% compared to the typical volume of 2,098 call options.

Insider Activity

In other news, Director Steven P. Stanbrook bought 54,540 shares of the stock in a transaction that occurred on Thursday, November 13th. The shares were bought at an average price of $16.43 per share, for a total transaction of $896,092.20. Following the purchase, the director owned 181,601 shares in the company, valued at $2,983,704.43. This represents a 42.92% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, CFO David W. Hass purchased 15,910 shares of the business’s stock in a transaction on Tuesday, November 11th. The stock was acquired at an average price of $15.71 per share, with a total value of $249,946.10. Following the purchase, the chief financial officer directly owned 64,745 shares in the company, valued at $1,017,143.95. This represents a 32.58% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 203,469 shares of company stock valued at $3,214,674 over the last 90 days. Company insiders own 58.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of PRMB. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Primo Brands during the second quarter valued at $26,000. Caption Management LLC purchased a new stake in Primo Brands in the 3rd quarter worth about $27,000. Byrne Asset Management LLC bought a new stake in Primo Brands in the third quarter worth about $47,000. 1620 Investment Advisors Inc. purchased a new position in shares of Primo Brands during the third quarter valued at approximately $54,000. Finally, Blue Trust Inc. purchased a new position in shares of Primo Brands during the third quarter valued at approximately $57,000. 87.71% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

PRMB has been the topic of a number of research analyst reports. Morgan Stanley reissued an “overweight” rating on shares of Primo Brands in a report on Monday. TD Securities cut their target price on shares of Primo Brands from $35.00 to $27.00 and set a “buy” rating for the company in a research note on Friday, November 7th. The Goldman Sachs Group reduced their price target on shares of Primo Brands from $21.00 to $18.00 and set a “neutral” rating on the stock in a report on Tuesday, November 25th. Mizuho dropped their price objective on shares of Primo Brands from $35.00 to $28.00 and set an “outperform” rating for the company in a report on Wednesday, November 26th. Finally, Barclays reduced their target price on Primo Brands from $25.00 to $24.00 and set an “overweight” rating on the stock in a report on Wednesday, November 26th. Nine analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $27.58.

Primo Brands Price Performance

Shares of NYSE:PRMB traded up $0.01 on Monday, reaching $16.20. The company’s stock had a trading volume of 1,234,244 shares, compared to its average volume of 2,384,261. The company has a 50-day simple moving average of $16.99 and a 200 day simple moving average of $22.50. Primo Brands has a 52-week low of $14.36 and a 52-week high of $35.85. The company has a debt-to-equity ratio of 1.59, a quick ratio of 0.86 and a current ratio of 1.02. The company has a market cap of $6.00 billion, a P/E ratio of -52.24, a PEG ratio of 0.53 and a beta of 0.63.

Primo Brands (NYSE:PRMB) last announced its quarterly earnings results on Thursday, November 6th. The company reported $0.41 EPS for the quarter, meeting analysts’ consensus estimates of $0.41. The firm had revenue of $1.77 billion during the quarter, compared to the consensus estimate of $1.78 billion. Primo Brands had a negative net margin of 1.30% and a positive return on equity of 12.52%. The company’s revenue was up 35.3% on a year-over-year basis. As a group, equities research analysts anticipate that Primo Brands will post 1.13 EPS for the current fiscal year.

Primo Brands declared that its board has authorized a stock buyback plan on Monday, November 10th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 0.9% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board believes its stock is undervalued.

Primo Brands Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, December 5th. Stockholders of record on Tuesday, November 25th were given a dividend of $0.10 per share. The ex-dividend date of this dividend was Tuesday, November 25th. This represents a $0.40 annualized dividend and a dividend yield of 2.5%. Primo Brands’s payout ratio is currently -129.03%.

About Primo Brands

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.