A look into Primo Water Corporation (PRMW)’s deeper side

Primo Water Corporation (NYSE: PRMW) stock jumped 3.44% on Tuesday to $15.35 against a previous-day closing price of $14.84. With 0.9 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.86 million shares. During the session, the Beverages – Non-Alcoholic company that operates in wider Consumer Defensive sector, reached to the highest price of $15.37 whereas the lowest price it dropped to was $14.69. The 52-week range on PRMW shows that it touched its highest point at $17.22 and its lowest point at $12.15 during that stretch. It currently has a 1-year price target of $20.06. With its current market cap of 2.47 billion, PRMW has annualized dividend of $0.28 while the current yield stands at 1.82%. Beta for the stock currently stands at 1.09.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PRMW was up-trending over the past week, with a rise of 0.07%, but this was down by -1.54% over a month. Three-month performance surged to 7.57% while six-month performance rose 18.08%. The stock lost -9.71% in the past year, while it has lost -1.22% so far this year. A look at the trailing 12-month EPS for PRMW yields -0.19 with Next year EPS estimates of 0.89. For the next quarter, that number is 0.18. This implies an EPS growth rate of 98.00% for this year and 28.32% for next year. EPS is expected to grow by 22.22% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 46.90%.

Float and Shares Shorts:

At present, 161.12 million PRMW shares are outstanding with a float of 155.63 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.55 million, which was 1.58% higher than short shares on Sep 14, 2022. In addition to Mr. Thomas J. Harrington as the firm’s Pres, CEO, Interim Pres of North America & Director, Mr. Jay Wells serves as its Chief Financial Officer.


Institutional Ownership:

Through their ownership of 88.34% of PRMW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.75% of PRMW, in contrast to 34.36% held by mutual funds. Shares owned by individuals account for 3.77%. As the largest shareholder in PRMW with 5.96% of the stake, The Vanguard Group, Inc. holds 9,519,098 shares worth 9,519,098. A second-largest stockholder of PRMW, BlackRock Fund Advisors, holds 8,387,137 shares, controlling over 5.25% of the firm’s shares. JPMorgan Investment Management, I is the third largest shareholder in PRMW, holding 7,619,559 shares or 4.77% stake. With a 3.68% stake in PRMW, the Undiscovered Managers Behavioral is the largest stakeholder. A total of 5,882,683 shares are owned by the mutual fund manager. The JPMorgan Small Cap Equity Fund, which owns about 3.17% of PRMW stock, is the second-largest Mutual Fund holder. It holds 5,072,126 shares valued at 78.82 million. Vanguard Total Stock Market Index holds 2.90% of the stake in PRMW, owning 4,638,793 shares worth 72.09 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PRMW since 10 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PRMW analysts setting a high price target of $24.00 and a low target of $17.00, the average target price over the next 12 months is $20.06. Based on these targets, PRMW could surge 56.35% to reach the target high and rise by 10.75% to reach the target low. Reaching the average price target will result in a growth of 30.68% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. PRMW will report FY 2022 earnings on 02/22/2024. Analysts have provided yearly estimates in a range of $0.77 being high and $0.65 being low. For PRMW, this leads to a yearly average estimate of $0.69. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Primo Water Corporation surprised analysts by -$0.00 when it reported $0.22 EPS against a consensus estimate of $0.22. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $0.21 and the low estimate is $0.13. The average estimate for the next quarter is thus $0.17.

Summary of Insider Activity:

Insiders traded PRMW stock several times over the past three months with 29 Buys and 28 Sells. In these transactions, 540,286 shares were bought while 330,190 shares were sold. The number of buy transactions has increased to 173 while that of sell transactions has risen to 74 over the past year. The total number of shares bought during that period was 2,533,606 while 1,709,812 shares were sold.

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