Perimeter Solutions Director Jorge Valladares has purchased a significant number of shares in the company, according to the latest filings. Valladares acquired 42,000 shares of Perimeter Solutions, SA (NYSE:PRM) at a price of $7.149 per share, amounting to a total investment of $300,258.
The transactions, which took place on June 11, 2024, were made through three separate purchases, each involving 14,000 shares. These shares were acquired indirectly through Child Trusts numbered 1, 2, and 3, respectively. Following these purchases, the total number of shares owned by Valladares in Perimeter Solutions has not been disclosed in the context of direct ownership, but an additional holding of 244,000 shares is held directly.
Perimeter Solutions, known for its work in the chemicals and allied products sector, has seen its shares being actively traded by insiders, which often provides investors with insights into the company's prospects as perceived by its management and board members.
Investors and market watchers frequently monitor such insider transactions as they can indicate confidence in the company's future performance. Although the motivations behind Valladares' purchase were not detailed in the filing, the substantial amount invested could be seen as a positive signal.
The filing, signed by Attorney-in-Fact Noriko Yokozuka on behalf of Valladares, was submitted on June 13, 2024, and reflects the transactions dated back to June 11, 2024. It is important for investors to consider the context and details of insider transactions when evaluating their investment decisions.
In other recent news, Perimeter Solutions has made significant strides in its Q1 2024 financial performance. The company reported a 34% increase in Fire Safety revenue and a 35% rise in Specialty Products sales compared to the previous year. This growth has been attributed to the company's strategic focus on research and development, cost reduction, and pricing. In addition, Fire Safety is nearing breakeven adjusted EBITDA, while Specialty Products witnessed a 91% increase in the same metric.
Perimeter Solutions has also been active with capital allocation, repurchasing approximately three million shares, and maintaining a solid cash position of $34 million at the end of the quarter. The company's products on the US fire service's Qualified Products List are expected to remain unaffected by the re-qualification process. Furthermore, the company anticipates a benefit in 2024, primarily in Q2 and Q3, due to inventory reduction during the fire season.
While the company did not disclose current year pricing details, it maintains a consistent strategy for capital deployment, emphasizing share repurchases, and focuses on product and service improvements to enhance customer value. These recent developments underscore Perimeter Solutions' commitment to maintaining market leadership and delivering value to its shareholders.
InvestingPro Insights
Perimeter Solutions' recent insider share purchases by Director Jorge Valladares have sparked interest among investors, looking for signs of confidence from the company's management. In light of these events, InvestingPro data and tips provide valuable context for understanding the company's financial health and future prospects.
According to InvestingPro data, Perimeter Solutions has a market capitalization of $1080M USD, reflecting its size and significance in the sector. Notably, the company's revenue growth for the last twelve months as of Q1 2024 stands at -2.69%, suggesting challenges in expanding its top-line figures. However, a closer look at the quarterly revenue growth reveals a more promising picture, with a significant increase of 34.63% in Q1 2024, which could indicate a turnaround or seasonal strength in the company's operations.
The InvestingPro Tips highlight that management has been aggressively buying back shares and that the company is expected to see sales growth in the current year. These insights, combined with a strong return over the last three months of 16.2% and a large price uptick over the last six months of 78.47%, paint a picture of a potentially undervalued company that is gaining momentum.
While the P/E ratio is currently negative at -49.28, indicating that the company is not profitable over the last twelve months, analysts predict that Perimeter Solutions will be profitable this year. This forward-looking optimism is underscored by the company's solid performance in terms of share price appreciation, with the price currently at 91.32% of its 52-week high.
For investors interested in a deeper dive into Perimeter Solutions' financials and future outlook, there are additional InvestingPro Tips available. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a wealth of expert analysis and data to inform investment decisions.
It's worth noting that while insider purchases can be a positive sign, they should be considered as part of a broader investment strategy. The full suite of InvestingPro Tips, which includes several more insights into Perimeter Solutions, can be accessed by interested parties seeking to complement their research and make more informed investment choices.
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