PRMW stock: buy or sell?

PRMW stock price: $14.67 -0.27% At close on January 17th, 2020

Updated on:
January 17th, 2020

2

After climbing for 4 sessions, Friday Primo Water remained steady an unpleasant -0.27%, closing at $14.67. On Monday PRMW rocketed a super good 20.27%.

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.

Should I buy PRMW stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading strategy that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Primo Water stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Primo Water stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we collected 9 ratings published for PRMW stock in the last month.

The general sentiment of these ratings is bullish for PRMW stock, with 9 positive ratings.
Is PRMW a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-6B. Rileyn/aBuy
2019-8-7Imperial Capitaln/aOutperform
2019-6-26Barrington Researchn/aBuy
2019-6-25Northland Securitiesn/aBuy
2019-6-18Imperial CapitalOutperformOutperform
2019-6-18Imperial Capitaln/aOutperform
2019-3-8Imperial Capitaln/aOutperform
2019-3-6BMO Capital MarketsOutperformOutperform
2019-3-6B. RileyBuyBuy

PRMW stock analysis

Daily outlook

After climbing for 4 days, Friday Primo Water remained constant an unpleasant -0.27%, closing at $14.67.

After climbing for 4 days, Friday Primo Water remained steady an unpleasant -0.27%, closing at $14.67. For the last 5 days when PRMW stock price broke up the SMA200d line, it gained $3.58 (32.28%).

PRMW stock chart (daily)

Weekly outlook

Primo Water crossed up the simple moving average line of 200d, closing at $14.67.

PRMW stock chart (weekly)

PRMW stock price history

PRMW stock went public on November 5th, 2010 with a price of $15.001. Since then, PRMW stock lost a -2.20%, with a yearly average of -0.20%.

1: Adjusted price after possible price splits or reverse-splits.

PRMW stock historical price chart

PRMW stock reached 52-week highs on May at $16.35, and all-time highs 2018-08-20 with a price of 20.72.

PRMW stock price target is $18.30

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 9 price predictions for Primo Water stock:
PRMW stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-6B. RileyReiteratesn/a$18.00-
2019-8-7Imperial CapitalLowers Target$18.00$15.00-16.7%
2019-6-26Barrington ResearchSet Price Targetn/a$18.00-
2019-6-25Northland SecuritiesReiteratesn/a$19.00-
2019-6-18Imperial CapitalReiterates$20.00$18.00-10%
2019-6-18Imperial CapitalLowers Target$20.00$18.00-10%
2019-3-8Imperial CapitalReiteratesn/a$20.00-
2019-3-6BMO Capital MarketsRaises Target$17.00$18.005.9%
2019-3-6B. RileyRaises Target$19.00$21.0010.5%
(in average)$18.80$18.30-3.0%
The price prediction for Primo Water stock is $18.30, moving in a range between $21.00 and $15.00. In average, analysts' outlook on PRMW price target is negative, downsizing the target by a -3.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report on March, Primo Water . As soon as we get its actual EPS from the earnings report, we will extend this review.
PRMW earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.28n/a
2017-Q2-n/a-0.02n/a
2017-Q3-n/a0.15n/a
2017-Q42018-03-060.02-0.02n/a
2018-Q12018-05-08-0.04n/an/a
2018-Q22018-08-070.050.0980.0%
2018-Q32018-11-060.180.180.0%
2018-Q42019-03-050.050.050.0%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Primo Water annual sales soared a beatiful 5.61% to $302.11 M USD from $286.07 marked in 2017. Nevertheless, its profit margin (compared to sales) plunged to -18.15%, that is $-54.85 million.

PRMW annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$91 M-$-8.84 M-9.7%-
2014$106 M16.57%$-13.47 M-12.7%52.34%
2015$127 M19.40%$1.86 M1.5%-113.79%
2016$143 M12.28%$-5.95 M-4.2%-420.19%
2017$286 M100.70%$-6.36 M-2.2%6.95%
2018$302 M5.61%$-54.85 M-18.2%762.51%

Quarterly financial results

Primo Water posted $70.88 M in sales for 2018-Q4, a -13.32% less compared to previous quarter. Reported quarter income marked $1.73 M with a profit margin of 2.44%. Profit margin climbed a 73.66% compared to previous quarter when profit margin was -71.22%. When comparing sales to same quarter last year, Primo Water sales marked a decent gain and appreciated a 3.76%.
PRMW quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$61 M-$-11.86 M-19.5%-
2017-Q2$75 M23.18%$-2.48 M-3.3%-79.09%
2017-Q3$82 M9.87%$4.95 M6.0%-299.48%
2017-Q4$68 M-16.90%$3.03 M4.4%-38.71%
2018-Q1$74 M7.83%$1.21 M1.6%-60.09%
2018-Q2$76 M2.91%$0.45 M0.6%-62.73%
2018-Q3$82 M7.87%$-58.24 M-71.2%-13,013.08%
2018-Q4$71 M-13.32%$1.73 M2.4%-102.97%

Primo Water ownership

When you are planning to buy a company, it's worth to overview its ownership structure.

Primo Water shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 8.74% of all shares.

Bearish positions for PRMW stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Primo Water:

PRMWKOMIDDPEP
Market cap$575.7 M$243.7 B$6.4 B$196.4 B
Total shares39.2 M4,280.0 M56.1 M1,390.0 M
Float shares32.2 M3,850.0 M55.0 M1,390.0 M
  - Institutional holdings (%)86.5%69.5%99.5%73.7%
  - Insider holdings (%)8.7%0.8%2.0%0.2%
Shares in short selling0.0%0.0%0.0%0.0%

PRMW summary

Friday, January 17th, 2020
Open$14.82
Close$14.67
Day range$14.63 - $14.82
Previous close$14.71
Session gain-0.27%
Average true range$0.48
50d mov avg$10.95
100d mov avg$11.65
200d mov avg$12.46
Daily patternlb11c
Weekly pattern lt03a

Primo Water performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Primo Water, the benchmark is made against Coca-Cola, The Middleby and Pepsico.
Stock3m6m12m
PRMWPrimo Water27.01%6.61%7.16%
KOCoca-Cola4.73%12.44%23.38%
MIDDThe Middleby-2.08%-17.17%-3.21%
PEPPepsico4.41%10.10%32.14%

Primo Water competitors

We chose a few stocks to conform a list of Primo Water competitors to examine if you are interested in investing in PRMW: