Barrington Research Reaffirms “Buy” Rating for Primo Water (PRMW)

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Barrington Research reiterated their buy rating on shares of Primo Water (NASDAQ:PRMW) in a report issued on Wednesday morning. The brokerage currently has a $20.00 target price on the stock. Barrington Research also issued estimates for Primo Water’s Q1 2019 earnings at $0.04 EPS and Q3 2019 earnings at $0.21 EPS.

“We are maintaining our OUTPERFORM investment rating on PRMW, but slightly reducing our price target to $20 (from $21) given Q3’s disappointing results and management’s cautious outlook for the next two to three quarters. That said, our long-term enthusiasm for this idea remains very high and we believe that Primo shares should be bought on any weakness the stock may experience in this morning’s trading. We arrive at our price target of $20 by attaching a 15x multiple to our 2019 adjusted EBITDA estimate. We assume approximately $175 million in net debt 12 months from now.”,” the firm’s analyst wrote.

Several other research analysts have also recently commented on the company. BidaskClub raised Primo Water from a sell rating to a hold rating in a research report on Wednesday, October 24th. BMO Capital Markets reduced their price target on Primo Water from $18.00 to $17.00 and set a market perform rating for the company in a research report on Wednesday, October 24th. Finally, Zacks Investment Research cut Primo Water from a strong-buy rating to a hold rating in a research report on Wednesday, October 10th. One analyst has rated the stock with a sell rating, three have given a hold rating and three have issued a buy rating to the company. Primo Water presently has a consensus rating of Hold and a consensus target price of $19.50.

NASDAQ PRMW traded down $0.02 during trading hours on Wednesday, hitting $14.63. 461,717 shares of the company traded hands, compared to its average volume of 320,316. Primo Water has a twelve month low of $11.16 and a twelve month high of $20.72. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.88 and a current ratio of 1.06. The stock has a market capitalization of $541.68 million, a PE ratio of -52.25, a price-to-earnings-growth ratio of 3.15 and a beta of 0.61.

Primo Water (NASDAQ:PRMW) last issued its quarterly earnings results on Tuesday, November 6th. The company reported $0.18 EPS for the quarter, meeting the consensus estimate of $0.18. Primo Water had a positive return on equity of 10.19% and a negative net margin of 17.88%. The firm had revenue of $81.80 million during the quarter, compared to analysts’ expectations of $83.26 million. During the same period in the prior year, the firm posted $0.15 earnings per share. The business’s quarterly revenue was down .5% compared to the same quarter last year. As a group, research analysts forecast that Primo Water will post 0.38 EPS for the current year.

In other Primo Water news, VP Michael Cauthen sold 1,377 shares of the company’s stock in a transaction that occurred on Thursday, August 16th. The stock was sold at an average price of $19.56, for a total value of $26,934.12. Following the sale, the vice president now owns 6,159 shares in the company, valued at $120,470.04. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Charles A. Norris sold 148,678 shares of the company’s stock in a transaction that occurred on Tuesday, September 4th. The shares were sold at an average price of $20.18, for a total value of $3,000,322.04. Following the completion of the sale, the director now owns 4,282 shares in the company, valued at approximately $86,410.76. The disclosure for this sale can be found here. Insiders sold 243,509 shares of company stock worth $4,895,288 in the last 90 days. Corporate insiders own 13.50% of the company’s stock.

Large investors have recently added to or reduced their stakes in the business. Bank of New York Mellon Corp raised its stake in Primo Water by 43.0% in the second quarter. Bank of New York Mellon Corp now owns 156,647 shares of the company’s stock valued at $2,740,000 after buying an additional 47,114 shares during the period. Renaissance Technologies LLC raised its stake in Primo Water by 166.3% in the second quarter. Renaissance Technologies LLC now owns 690,355 shares of the company’s stock valued at $12,074,000 after buying an additional 431,100 shares during the period. Cadence Capital Management LLC raised its stake in Primo Water by 19.9% in the third quarter. Cadence Capital Management LLC now owns 171,489 shares of the company’s stock valued at $3,095,000 after buying an additional 28,497 shares during the period. Manatuck Hill Partners LLC raised its stake in Primo Water by 7.1% in the second quarter. Manatuck Hill Partners LLC now owns 1,292,000 shares of the company’s stock valued at $22,597,000 after buying an additional 86,000 shares during the period. Finally, Dimensional Fund Advisors LP increased its stake in shares of Primo Water by 31.8% during the second quarter. Dimensional Fund Advisors LP now owns 1,045,086 shares of the company’s stock worth $18,279,000 after purchasing an additional 251,899 shares during the period. Hedge funds and other institutional investors own 74.07% of the company’s stock.

Primo Water Company Profile

Primo Water Corporation, together with its subsidiaries, provides multi-gallon purified bottled water, self-service refill water, and water dispensers in the United States and Canada. It operates in three segments: Refill, Exchange, and Dispensers. The Refill segment sells filtered drinking water dispensed directly to consumers through self-service machines.

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