Primo Water (NASDAQ:PRMW)‘s stock had its “buy” rating reaffirmed by investment analysts at Barrington Research in a research note issued on Wednesday. They presently have a $20.00 target price on the stock. Barrington Research’s target price indicates a potential upside of 12.55% from the stock’s previous close.
The analysts wrote, “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.””
A number of other analysts have also weighed in on the company. BidaskClub lowered Primo Water from a “hold” rating to a “sell” rating in a research note on Saturday, September 22nd. Zacks Investment Research raised Primo Water from a “hold” rating to a “buy” rating and set a $22.00 price objective for the company in a research note on Saturday, August 11th. Finally, BMO Capital Markets increased their price objective on Primo Water from $16.00 to $18.00 and gave the company a “market perform” rating in a research note on Wednesday, August 8th. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Primo Water has an average rating of “Buy” and a consensus price target of $19.50.
Shares of PRMW opened at $17.77 on Wednesday. The company has a market capitalization of $652.51 million, a price-to-earnings ratio of -63.46, a PEG ratio of 3.80 and a beta of 0.61. The company has a quick ratio of 0.88, a current ratio of 1.06 and a debt-to-equity ratio of 1.24. Primo Water has a 1 year low of $11.16 and a 1 year high of $20.72.
Primo Water (NASDAQ:PRMW) last issued its earnings results on Tuesday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.05 by $0.04. The business had revenue of $75.80 million during the quarter, compared to analyst estimates of $72.96 million. Primo Water had a return on equity of 8.21% and a net margin of 3.21%. Sell-side analysts anticipate that Primo Water will post 0.38 earnings per share for the current fiscal year.
In related news, Director Charles A. Norris sold 25,000 shares of the firm’s stock in a transaction on Monday, August 20th. The stock was sold at an average price of $20.41, for a total value of $510,250.00. Following the completion of the sale, the director now owns 167,556 shares of the company’s stock, valued at $3,419,817.96. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Charles A. Norris sold 148,678 shares of the firm’s stock in a transaction on Tuesday, September 4th. The stock was 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 directly owns 4,282 shares of the company’s stock, valued at approximately $86,410.76. The disclosure for this sale can be found here. Insiders sold 243,509 shares of company stock valued at $4,895,288 in the last ninety days. 13.50% of the stock is currently owned by insiders.
A number of hedge funds have recently made changes to their positions in PRMW. Akre Capital Management LLC lifted its stake in Primo Water by 48.6% in the second quarter. Akre Capital Management LLC now owns 2,843,220 shares of the company’s stock worth $49,728,000 after acquiring an additional 930,000 shares during the period. Renaissance Technologies LLC raised its holdings in Primo Water by 166.3% in the second quarter. Renaissance Technologies LLC now owns 690,355 shares of the company’s stock worth $12,074,000 after purchasing an additional 431,100 shares in the last quarter. BlackRock Inc. raised its holdings in Primo Water by 23.4% in the second quarter. BlackRock Inc. now owns 1,804,996 shares of the company’s stock worth $31,569,000 after purchasing an additional 342,728 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Primo Water by 31.8% in 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 in the last quarter. Finally, Citadel Advisors LLC raised its holdings in Primo Water by 1,175.1% in the second quarter. Citadel Advisors LLC now owns 256,428 shares of the company’s stock worth $4,486,000 after purchasing an additional 236,317 shares in the last quarter. 74.07% of the stock is owned by institutional investors.
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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