Primo Water (NYSE:PRMW) Shares Gap Up Following Strong Earnings

Primo Water Co. (NYSE:PRMW – Get Rating)’s share price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $13.70, but opened at $14.37. Primo Water shares last traded at $13.93, with a volume of 2,879 shares.

The company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.02. The company had revenue of $526.10 million for the quarter, compared to analyst estimates of $516.19 million. Primo Water had a positive return on equity of 5.33% and a negative net margin of 0.15%. The firm’s quarterly revenue was up 10.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.05 EPS.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 22nd. Investors of record on Friday, June 10th will be given a $0.07 dividend. This represents a $0.28 annualized dividend and a dividend yield of 1.98%. The ex-dividend date is Thursday, June 9th. Primo Water’s payout ratio is currently -1,400.00%.

A number of brokerages have issued reports on PRMW. Zacks Investment Research upgraded shares of Primo Water from a “strong sell” rating to a “hold” rating in a research note on Saturday. Citigroup cut their target price on Primo Water from $21.00 to $18.00 and set a “buy” rating on the stock in a research report on Friday, February 25th. TD Securities lowered their price target on Primo Water from $23.00 to $21.00 and set a “buy” rating for the company in a research report on Friday, February 25th. Finally, Deutsche Bank Aktiengesellschaft dropped their price target on Primo Water from $18.00 to $16.00 in a research note on Friday. One research analyst has rated the stock with a sell rating, two have issued a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, Primo Water currently has a consensus rating of “Hold” and a consensus price target of $18.80.

In other Primo Water news, Director Steven P. Stanbrook purchased 3,362 shares of the stock in a transaction on Monday, February 28th. The shares were bought at an average price of $14.37 per share, for a total transaction of $48,311.94. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Jay Wells acquired 10,000 shares of the business’s stock in a transaction dated Monday, March 7th. The stock was acquired at an average price of $13.81 per share, with a total value of $138,100.00. The disclosure for this purchase can be found here. Insiders own 5.90% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Ancora Advisors LLC acquired a new position in shares of Primo Water during the first quarter valued at approximately $36,000. Connable Office Inc. acquired a new position in Primo Water in the 1st quarter valued at $148,000. Bridgefront Capital LLC purchased a new position in Primo Water in the 1st quarter valued at $177,000. Tudor Investment Corp Et Al acquired a new stake in Primo Water during the 3rd quarter worth $188,000. Finally, Brown Advisory Inc. purchased a new stake in shares of Primo Water during the fourth quarter worth $199,000. 93.36% of the stock is owned by institutional investors.

The stock’s 50-day moving average price is $14.33 and its 200 day moving average price is $16.05. The company has a quick ratio of 0.58, a current ratio of 0.72 and a debt-to-equity ratio of 1.00. The firm has a market capitalization of $2.27 billion, a price-to-earnings ratio of -706.00 and a beta of 1.33.

About Primo Water (NYSE:PRMW)

Primo Water Corporation provides water direct to consumers and water filtration services in North America and Europe. It offers bottled water, purified bottled water, premium spring, sparkling and flavored water, mineral water, filtration equipment, and coffee; as well as water dispensers, and self-service refill drinking water.

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