Disclosed on May 20, Vivek Raj, Board Member at Perimeter Solutions PRM, executed a substantial insider sell as per the latest SEC filing.
What Happened: Raj’s decision to sell 268,810 shares of Perimeter Solutions was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $3,166,710.
The latest market snapshot at Wednesday morning reveals Perimeter Solutions shares down by 1.78%, trading at $11.62.
Unveiling the Story Behind Perimeter Solutions
Perimeter Solutions Inc is a solutions provider for the Fire Safety and Specialty Products industries. The Company’s products and operations are managed and reported in two operating segments. Its Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services typically offered in conjunction with the Company’s retardant and foam products. The Specialty Products segment includes operations that develop, produce and market products for non-fire safety markets. Specialty Products segment is Phosphorus Pentasulfide (P2S5) based lubricant additives. P2S5 is also used in pesticide and mining chemicals applications, and emerging electric battery technologies.
Breaking Down Perimeter Solutions’s Financial Performance
Positive Revenue Trend: Examining Perimeter Solutions’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 21.99% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.
Key Insights into Profitability Metrics:
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Gross Margin: The company sets a benchmark with a high gross margin of 39.09%, reflecting superior cost management and profitability compared to its peers.
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Earnings per Share (EPS): Perimeter Solutions’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.38.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.57.
Exploring Valuation Metrics Landscape:
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Price to Earnings (P/E) Ratio: The P/E ratio of 13.29 is lower than the industry average, implying a discounted valuation for Perimeter Solutions’s stock.
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Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.06 suggests overvaluation in the eyes of investors, considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Perimeter Solutions’s EV/EBITDA ratio at 10.43 suggests potential undervaluation, falling below industry averages.
Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.
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Understanding the Significance of Insider Transactions
Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Transaction Codes To Focus On
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Perimeter Solutions’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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