Primo Water (PRMW) Declares $0.08 Dividend

Primo Water said on May 4, 2023 that its board of directors declared a regular quarterly dividend of $0.08 per share ($0.32 annualized). Previously, the company paid $0.08 per share.

Shares must be purchased before the ex-div date of June 1, 2023 to qualify for the dividend. Shareholders of record as of June 2, 2023 will receive the payment on June 14, 2023.

At the current share price of $14.32 / share, the stock's dividend yield is 2.23%.

Additionally, the company's dividend payout ratio is 1.16. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

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What is the Fund Sentiment?

There are 476 funds or institutions reporting positions in Primo Water. This is an increase of 32 owner(s) or 7.21% in the last quarter. Average portfolio weight of all funds dedicated to PRMW is 0.34%, an increase of 14.21%. Total shares owned by institutions increased in the last three months by 1.20% to 178,408K shares. The put/call ratio of PRMW is 0.83, indicating a bullish outlook.

Analyst Price Forecast Suggests 21.11% Upside

As of March 27, 2023, the average one-year price target for Primo Water is 17.35. The forecasts range from a low of 17.18 to a high of $17.86. The average price target represents an increase of 21.11% from its latest reported closing price of 14.32.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Primo Water is 2,386MM. The projected annual non-GAAP EPS is 0.91.

What are Other Shareholders Doing?

Jpmorgan Chase holds 8,994K shares representing 5.63% ownership of the company. In it's prior filing, the firm reported owning 8,624K shares, representing an increase of 4.10%. The firm increased its portfolio allocation in PRMW by 18.54% over the last quarter.

Fuller & Thaler Asset Management holds 7,697K shares representing 4.82% ownership of the company. In it's prior filing, the firm reported owning 7,136K shares, representing an increase of 7.29%. The firm increased its portfolio allocation in PRMW by 17.79% over the last quarter.

UBVLX - Undiscovered Managers Behavioral Value Fund Class L holds 6,256K shares representing 3.92% ownership of the company. In it's prior filing, the firm reported owning 5,806K shares, representing an increase of 7.19%. The firm increased its portfolio allocation in PRMW by 19.30% over the last quarter.

Praesidium Investment Management Company holds 5,776K shares representing 3.62% ownership of the company. In it's prior filing, the firm reported owning 6,419K shares, representing a decrease of 11.13%. The firm increased its portfolio allocation in PRMW by 16.04% over the last quarter.

Ameriprise Financial holds 5,290K shares representing 3.31% ownership of the company. In it's prior filing, the firm reported owning 5,606K shares, representing a decrease of 5.97%. The firm increased its portfolio allocation in PRMW by 490.99% over the last quarter.

Primo Water Background Information
(This description is provided by the company.)

Primo Water Corporation is a leading pure-play water solutions provider in North America, Europeand Israeland generates approximately $2.1 billionin annual revenue. Primo operates largely under a recurring razor/razorblade revenue model. The razor in Primo's revenue model is its industry leading line-up of sleek and innovative water dispensers, which are sold through major retailers and online at various price points or leased to customers. The dispensers help increase household penetration which drives recurring purchases of Primo's razorblade offering. Primo's razorblade offering is comprised of Water Direct, Water Exchange, and Water Refill. Through its Water Direct business, Primo delivers sustainable hydration solutions across its 21-country footprint direct to the customer's door, whether at home or to commercial businesses. Through its Water Exchange and Water Refill businesses, Primo offers pre-filled and reusable containers at over 13,000 locations and water refill units at approximately 22,000 locations, respectively. Primo also offers water filtration units across its 21-country footprint representing a top five position. Primo's water solutions expand consumer access to purified, spring and mineral water to promote a healthier, more sustainable lifestyle while simultaneously reducing plastic waste and pollution. Primo is committed to its water stewardship standards and is proud to partner with the International Bottled Water Association (IBWA) in North Americaas well as with Watercoolers Europe (WE), which ensure strict adherence to safety, quality, sanitation and regulatory standards for the benefit of consumer protection. Primo is headquartered in Tampa, Florida(USA).

This story originally appeared on Fintel.