Perimeter Solutions (NYSE:PRM) Cut to “Strong Sell” at Zacks Research

Perimeter Solutions (NYSE:PRM) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Monday,Zacks.com reports.

A number of other equities analysts have also commented on the company. CJS Securities initiated coverage on Perimeter Solutions in a research note on Tuesday, June 9th. They issued a “market outperform” rating and a $48.00 price objective on the stock. UBS Group raised their target price on Perimeter Solutions from $30.00 to $34.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Wall Street Zen downgraded Perimeter Solutions from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Morgan Stanley upped their price target on Perimeter Solutions from $35.00 to $40.00 and gave the stock an “overweight” rating in a report on Monday, May 11th. Finally, Weiss Ratings upgraded shares of Perimeter Solutions from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday, July 29th. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $41.75.

Perimeter Solutions Price Performance

Shares of Perimeter Solutions stock opened at $34.57 on Monday. 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 firm has a fifty day simple moving average of $34.32 and a 200-day simple moving average of $29.64. The stock has a market capitalization of $5.66 billion, a price-to-earnings ratio of -15.50 and a beta of 1.91. Perimeter Solutions has a 1-year low of $17.67 and a 1-year high of $38.17.

Perimeter Solutions (NYSE:PRM) last posted its earnings results on Friday, July 31st. The company reported $0.35 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.08). The firm had revenue of $213.81 million during the quarter, compared to analyst estimates of $216.89 million. Perimeter Solutions had a negative net margin of 44.86% and a positive return on equity of 19.15%. On average, sell-side analysts expect that Perimeter Solutions will post 1.58 earnings per share for the current year.

Insider Activity

In related news, CEO Haitham Khouri sold 117,511 shares of Perimeter Solutions stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $31.19, for a total transaction of $3,665,168.09. Following the sale, the chief executive officer directly owned 1,874,615 shares of the company’s stock, valued at $58,469,241.85. This trade represents a 5.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Windacre Partnership Llc sold 1,875,000 shares of the business’s stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $33.90, for a total value of $63,562,500.00. Following the transaction, the insider owned 16,148,621 shares in the company, valued at $547,438,251.90. This represents a 10.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 5,935,514 shares of company stock valued at $202,902,090. 13.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Perimeter Solutions

Several institutional investors and hedge funds have recently bought and sold shares of the business. Principal Financial Group Inc. raised its stake in shares of Perimeter Solutions by 15.0% in the 1st quarter. Principal Financial Group Inc. now owns 12,513,159 shares of the company’s stock valued at $305,572,000 after buying an additional 1,634,158 shares in the last quarter. Vanguard Group Inc. lifted its stake in Perimeter Solutions by 1.9% during the fourth quarter. Vanguard Group Inc. now owns 8,570,699 shares of the company’s stock worth $235,951,000 after purchasing an additional 156,788 shares during the period. Dimensional Fund Advisors LP raised its holdings in shares of Perimeter Solutions by 4.5% in the 3rd quarter. Dimensional Fund Advisors LP now owns 5,145,141 shares of the company’s stock worth $115,188,000 after buying an additional 221,290 shares in the last quarter. Janus Henderson Group PLC lifted its position in shares of Perimeter Solutions by 8.6% during the 1st quarter. Janus Henderson Group PLC now owns 4,007,536 shares of the company’s stock worth $97,863,000 after buying an additional 315,763 shares during the period. Finally, Geode Capital Management LLC lifted its position in shares of Perimeter Solutions by 3.7% during the 4th quarter. Geode Capital Management LLC now owns 3,421,820 shares of the company’s stock worth $94,218,000 after buying an additional 122,435 shares during the period. Institutional investors own 89.93% of the company’s stock.

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.