Primo Brands (NYSE:PRMB) to Buyback $50.00 million in Stock

Primo Brands (NYSE:PRMB) announced that its Board of Directors has authorized a share repurchase plan on Monday, November 10th, RTT News reports. The company plans to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 0.9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Primo Brands Stock Up 4.1%

Shares of NYSE:PRMB opened at $16.11 on Thursday. The stock has a market capitalization of $5.96 billion, a P/E ratio of -146.44, a price-to-earnings-growth ratio of 0.61 and a beta of 0.72. The stock’s 50-day moving average price is $21.89 and its 200-day moving average price is $26.61. The company has a current ratio of 1.06, a quick ratio of 0.88 and a debt-to-equity ratio of 1.55. Primo Brands has a 12-month low of $14.36 and a 12-month high of $35.85.

Primo Brands (NYSE:PRMB) last issued its earnings results on Thursday, November 6th. The company reported $0.41 earnings per share for the quarter, meeting the consensus estimate of $0.41. Primo Brands had a positive return on equity of 9.64% and a negative net margin of 1.20%.The company had revenue of $1.77 billion during the quarter, compared to analysts’ expectations of $1.78 billion. The firm’s quarterly revenue was up 35.3% compared to the same quarter last year. On average, equities analysts anticipate that Primo Brands will post 1.13 earnings per share for the current year.

Primo Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 5th. Stockholders of record on Tuesday, November 25th will be paid a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Tuesday, November 25th. Primo Brands’s dividend payout ratio is -129.03%.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on PRMB shares. Jefferies Financial Group initiated coverage on shares of Primo Brands in a research note on Friday, October 17th. They issued a “hold” rating and a $23.00 price target for the company. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $26.00 price objective on shares of Primo Brands in a research report on Friday, August 8th. JPMorgan Chase & Co. cut their target price on shares of Primo Brands from $37.00 to $35.00 and set an “overweight” rating for the company in a research report on Thursday, October 30th. Bank of America reduced their target price on Primo Brands from $32.00 to $26.00 and set a “buy” rating on the stock in a research note on Wednesday, October 8th. Finally, Zacks Research downgraded Primo Brands from a “hold” rating to a “strong sell” rating in a research report on Tuesday, November 4th. Nine research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $30.75.

Insider Buying and Selling

In other news, Director Michael John Cramer purchased 5,000 shares of the stock in a transaction that occurred on Monday, November 10th. The stock was bought at an average cost of $15.73 per share, for a total transaction of $78,650.00. Following the acquisition, the director directly owned 17,762 shares of the company’s stock, valued at $279,396.26. This represents a 39.18% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CFO David W. Hass purchased 15,910 shares of the company’s stock in a transaction on Tuesday, November 11th. The shares were purchased at an average cost of $15.71 per share, with a total value of $249,946.10. Following the transaction, the chief financial officer directly owned 64,745 shares in the company, valued at $1,017,143.95. This trade represents a 32.58% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 58.40% of the company’s stock.

About Primo Brands

Primo Brands Corp. is a branded beverage company, which focuses on healthy hydration. It delivers sustainably and domestically sourced diversified offerings across products, formats, channels, price points and consumer occasions, distributed in the United States and Canada. The company provides water filtration units for home and business consumers across North America.