Perimeter Solutions (NYSE:PRM) Shares Gap Down After Earnings Miss

Shares of Perimeter Solutions, SA (NYSE:PRM) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $37.23, but opened at $31.20. Perimeter Solutions shares last traded at $30.8880, with a volume of 648,915 shares changing hands.

The company reported $0.35 EPS for the quarter, missing the consensus estimate of $0.43 by ($0.08). Perimeter Solutions had a negative net margin of 26.93% and a positive return on equity of 18.29%. The firm had revenue of $213.81 million for the quarter, compared to the consensus estimate of $216.89 million.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on PRM shares. JPMorgan Chase & Co. assumed coverage on Perimeter Solutions in a report on Thursday, July 9th. They issued an “overweight” rating and a $50.00 price target on the stock. CJS Securities initiated coverage on Perimeter Solutions in a report on Tuesday, June 9th. They set a “market outperform” rating and a $48.00 price objective for the company. Wall Street Zen downgraded Perimeter Solutions from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Weiss Ratings raised Perimeter Solutions from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Wednesday. Finally, UBS Group increased their target price on Perimeter Solutions from $30.00 to $34.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $43.00.

Insider Transactions at Perimeter Solutions

In other Perimeter Solutions news, CFO Kyle Sable sold 150,000 shares of the firm’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $31.52, for a total transaction of $4,728,000.00. Following the transaction, the chief financial officer owned 20,000 shares of the company’s stock, valued at approximately $630,400. This trade represents a 88.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, major shareholder Windacre Partnership Llc sold 3,393,479 shares of the business’s stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $34.66, for a total transaction of $117,617,982.14. Following the completion of the transaction, the insider directly owned 18,461,121 shares of the company’s stock, valued at $639,862,453.86. This trade represents a 15.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 6,385,514 shares of company stock worth $217,464,393. Corporate insiders own 13.10% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC grew its stake in Perimeter Solutions by 20.0% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,295 shares of the company’s stock worth $56,000 after buying an additional 383 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in shares of 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 acquiring an additional 389 shares during the last quarter. GAMMA Investing LLC grew its stake in shares of Perimeter Solutions by 9.0% during the second quarter. GAMMA Investing LLC now owns 5,127 shares of the company’s stock worth $183,000 after acquiring an additional 425 shares during the last quarter. Allworth Financial LP increased its holdings in shares of Perimeter Solutions by 14.1% during the fourth quarter. Allworth Financial LP now owns 4,100 shares of the company’s stock valued at $113,000 after acquiring an additional 508 shares in the last quarter. Finally, Comerica Bank increased its holdings in shares of Perimeter Solutions by 12.2% during the third quarter. Comerica Bank now owns 5,019 shares of the company’s stock valued at $112,000 after acquiring an additional 547 shares in the last quarter. Institutional investors own 89.93% of the company’s stock.

Perimeter Solutions Stock Down 16.8%

The company’s 50-day moving average is $33.95 and its 200 day moving average is $29.33. The stock has a market capitalization of $5.05 billion, a PE ratio of -23.09 and a beta of 1.90. The company has a current ratio of 3.09, a quick ratio of 1.61 and a debt-to-equity ratio of 1.01.

About Perimeter Solutions

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.