Primo Water Corporation (NYSE:PRMW) shares fell to a low of $15.75 before closing at $16.00. Intraday shares traded counted 0.61 million, which was 37.55% higher than its 30-day average trading volume of 971.69K. PRMW’s previous close was $15.82 while the outstanding shares total 160.10M. The firm has a beta of 1.32. The stock’s Relative Strength Index (RSI) is 63.35, with weekly volatility at 2.13% and ATR at 0.31. The PRMW stock’s 52-week price range has touched low of $6.33 and a $16.34 high. The stock traded higher over the last trading session, gaining 1.14% on 12/24/20.
Investors have identified the Beverages – Non-Alcoholic company Primo Water Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.52 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Primo Water Corporation (PRMW) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For PRMW, the company has in raw cash 161.9 million on their books with 167.3 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 544.3 million total, with 633.9 million as their total liabilities.
PRMW were able to record 38.4 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by -43.6 million. In cash movements, the company had a total of 123.4 million as operating cash flow.
Potential earnings growth for Primo Water Corporation (PRMW)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Primo Water Corporation recorded a total of 517.5 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 8.77% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 11.73%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 213.4 million trying to sell their products during the last quarter, with the result yielding a gross income of 304.1 million. This allows shareholders to hold on to 160.10M with the recently reported earning now reading 0.14 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.21 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.75 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on PRMW sounds very interesting.
Is the stock of PRMW attractive?
In related news, Director, BRENNER RICHARD A sold 90 shares of the company’s stock in a transaction that recorded on Feb 14. The sale was performed at an average price of 15.31, for a total value of 1,378. As the sale deal closes, the Director, BRENNER RICHARD A now sold 90 shares of the company’s stock, valued at 1,378. Also, Director, Kilgore Jack C. sold 852 shares of the company’s stock in a deal that was recorded on Feb 13. The shares were price at an average price of 15.44 per share, with a total market value of 13,155. Following this completion of acquisition, the Interim CEO; Exec. Chairman, PRIM BILLY D now holds 5,361 shares of the company’s stock, valued at 82,774. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.50%.
9 out of 13 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Primo Water Corporation. 0 analysts has assigned a Sell rating on the PRMW stock. The 12-month mean consensus price target for the company’s shares has been set at $17.64.