Primo Brands (NYSE:PRMB) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Primo Brands Corporation (NYSE:PRMB) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $19.63, but opened at $21.50. Primo Brands shares last traded at $22.5570, with a volume of 2,854,145 shares.

The company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.20 by $0.06. Primo Brands had a positive return on equity of 12.52% and a negative net margin of 1.30%.The firm had revenue of $1.55 billion during the quarter, compared to analyst estimates of $1.52 billion. During the same quarter last year, the firm earned $0.13 EPS. Primo Brands’s quarterly revenue was up 11.2% on a year-over-year basis.

Primo Brands Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 23rd. Investors of record on Friday, March 6th will be paid a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 2.1%. This is a positive change from Primo Brands’s previous quarterly dividend of $0.10. The ex-dividend date is Friday, March 6th. Primo Brands’s payout ratio is -129.03%.

Primo Brands declared that its Board of Directors has approved a stock repurchase program on Monday, November 10th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the company to buy up to 0.9% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its shares are undervalued.

Key Primo Brands News

Here are the key news stories impacting Primo Brands this week:

• Positive Sentiment: Q4 beat on earnings and revenue — Primo delivered $0.26 EPS (vs. consensus roughly $0.20–$0.22) and $1.55B revenue (vs. ~$1.52B), with revenue up ~11.2% year-over-year. The beats are the primary catalyst cited by analysts and the market. Primo Brands Reports 2025 Fourth Quarter and Full Year Results
• Positive Sentiment: Management tone and signs of a turnaround — earnings call/transcript and coverage highlight improving margin dynamics, cost discipline and encouraging operational trends that persuaded investors the company may be exiting its prior trough. Q4 2025 Earnings Call Transcript
• Positive Sentiment: Market reaction and momentum — coverage notes a ~16% intraday rally on heavy volume as investors repositioned into the name after the beat and turnaround commentary. Why Primo Brands Corporation’s (PRMB) Stock Is Up 15.94%
• Neutral Sentiment: Valuation and outlook context — post-rally valuation metrics (market cap, P/E ~18, PEG ~0.71) and analyst estimates are being re-priced; some coverage examines whether the move fully reflects sustainable improvement. A Look At Primo Brands (PRMB) Valuation After Recent Share Price Momentum
• Negative Sentiment: Profitability and balance-sheet cautions — despite EPS beat and positive ROE, the company still reported a negative net margin (~-1.3%) and carries meaningful leverage (debt-to-equity ~1.59), which are ongoing risks if margin recovery stalls. Q4 Earnings and Revenues Beat Estimates

Analyst Upgrades and Downgrades

PRMB has been the subject of several recent research reports. Zacks Research lowered shares of Primo Brands from a “hold” rating to a “strong sell” rating in a research note on Tuesday, November 4th. JPMorgan Chase & Co. dropped their price objective on shares of Primo Brands from $23.00 to $21.00 and set an “overweight” rating on the stock in a research note on Thursday, December 18th. The Goldman Sachs Group decreased their target price on Primo Brands from $21.00 to $18.00 and set a “neutral” rating for the company in a research note on Tuesday, November 25th. Mizuho lowered their target price on Primo Brands from $28.00 to $24.00 and set an “outperform” rating for the company in a report on Thursday, January 8th. Finally, Morgan Stanley reissued an “overweight” rating on shares of Primo Brands in a report on Monday, January 5th. Nine analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $26.50.

Institutional Trading of Primo Brands

Several institutional investors and hedge funds have recently bought and sold shares of PRMB. One Rock Capital Partners LLC purchased a new position in shares of Primo Brands in the fourth quarter worth approximately $1,900,047,000. Viking Global Investors LP grew its position in Primo Brands by 17.5% during the 3rd quarter. Viking Global Investors LP now owns 23,033,970 shares of the company’s stock worth $509,051,000 after purchasing an additional 3,431,854 shares in the last quarter. Vanguard Group Inc. raised its stake in Primo Brands by 4.8% during the 4th quarter. Vanguard Group Inc. now owns 23,028,858 shares of the company’s stock valued at $376,522,000 after purchasing an additional 1,053,185 shares during the period. Fuller & Thaler Asset Management Inc. raised its stake in Primo Brands by 189.5% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 14,454,637 shares of the company’s stock valued at $236,333,000 after purchasing an additional 9,461,990 shares during the period. Finally, William Blair Investment Management LLC lifted its holdings in shares of Primo Brands by 6.7% in the fourth quarter. William Blair Investment Management LLC now owns 12,627,420 shares of the company’s stock valued at $206,458,000 after purchasing an additional 793,036 shares in the last quarter. Institutional investors and hedge funds own 87.71% of the company’s stock.

Primo Brands Trading Up 15.8%

The firm has a market cap of $8.42 billion, a price-to-earnings ratio of -73.32, a PEG ratio of 0.71 and a beta of 0.63. The company has a 50-day moving average price of $18.25 and a 200 day moving average price of $19.90. The company has a quick ratio of 0.86, a current ratio of 1.02 and a debt-to-equity ratio of 1.59.

About Primo Brands

Primo Brands (NYSE: PRMB) is a consumer packaged beverage company that was established as an independent entity following a corporate spin‐off in 2023. The company specializes in the production, marketing and distribution of a broad portfolio of bottled water products, including purified, mineral and sparkling varieties. Through its focus on quality control and innovation, Primo Brands aims to deliver clean, great-tasting water in formats tailored to both at-home consumption and on-the-go lifestyles.

Its product range spans multi-serve and single-serve bottles, aluminum cans and other eco-friendly packaging solutions.