PRMW stock: buy or sell?

PRMW stock price: $10.21 1.39% At close on May 14th, 2020

Updated on:
May 14th, 2020

1

After sliding a chilling -6.36% yesterday, Primo Water closed today at $10.21 and grew a nice 1.39%. On May 7th PRMW boosted a super good 11.72%.

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 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 doesn't mean PRMW will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Primo Water stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for PRMW stock for the last month.

PRMW stock analysis

Daily outlook

After sliding a chilling -6.36% yesterday, Primo Water closed today at $10.21 and grew a nice 1.39%.

After sliding a chilling -6.36% yesterday, Primo Water closed today at $10.21 and grew a nice 1.39%. From a daily perspective, PRMW is in a short term uptrend after plotting its last bottom ($9.49, on May 6th) higher than the previous bottom, and its last top ($11.39, on Friday) also over the previous top. Now trading in between its last bottom and last top PRMW might consolidate in a plain range, waiting to break out over $11.39 or down under $9.49. Since last March when PRMW stock price broke down the SMA100d line, it slid $-3.11 per share (-23.35%). On February, PRMW hit new all time highs, pushing higher previous ATH of $15.44 recorded on February. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

PRMW stock chart (daily)

Weekly outlook

After climbing for 4 weeks, this week Primo Water collapsed a frightening -9.73%, closing at $10.21. Last week PRMW climbed an outstanding 11.05% in just one week.

The downtrend marked by PRMW has left successive falling peaks and bottoms. There is a chance to rebound and reverse this situation if price can hold above the level. Not so far away is the last price record Primo Water marked by mid February, but since then it dropped a 33.87%. Since mid March, when PRMW stock price broke down the 20-weeks moving avarage line, it slid $-3.11 per share (-23.35%).

PRMW stock chart (weekly)

PRMW stock price history

PRMW IPO was on September at $12.93 per share1. Since then, PRMW stock declined a -21.00%, with a yearly average of inf%.

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

PRMW stock historical price chart

PRMW stock reached all-time highs on February with a price of $15.44.

PRMW stock price target

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. 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. You should not follow the analysts' PRMW stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not detected any price target for Primo Water stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, Primo Water matched the estimates of the analysts and posted an EPS of $0.05 per share. Unfortunately, reported EPS is not yet available in our database.
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 revenues rose a nice 5.61% to $302.11 million dollars 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 million in revenues for 2018-Q4, a -13.32% less compared to previous quarter. Reported quarter earnings marked $1.73 M with a profit margin of 2.44%. Profit margin rocketed a 73.66% compared to previous quarter when profit margin was -71.22%. When comparing revenues to same quarter last year, Primo Water sales marked a decent gain and stepped up 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

Having a look at Primo Water ownership structure gives valuable information about the company and its governance (insider ownership) or the amount of investors that are on the short side.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Primo Water, 3.04% of all outstanding shares are owned by its staff.

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:

PRMW
Market cap$1.6 B
Total shares156.5 M
Float shares125.8 M
  - Institutional holdings (%)83.4%
  - Insider holdings (%)3.0%
Shares in short selling0.0%

PRMW summary

Thursday, May 14th, 2020
Open$9.92
Close$10.21
Day range$9.72 - $10.22
Previous close$10.07
Session gain1.39%
Average true range$0.57
50d mov avg$10.07
100d mov avg$11.87
200d mov avg$0.00
Daily patternlt06a
Weekly pattern lt02a

Primo Water performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Primo Water to :
Stock3m6m12m
PRMWPrimo Water-33.05%1.79%0.00%

Primo Water competitors

Unfortunately, we could not find any public company that could be defined as Primo Water competitor. This doesn't mean Primo Water does not have any competitor in the market, it's just we could not detected it.