Primo Water Corporation: Rangebound

Summary

  • Shares of large-format drinking water solutions concern Primo Water Corporation have been essentially range bound since 2015.
  • Management expects to change its fortune with its now-pure-play dispenser/refill (razor/razorblade) model, which should generate slightly higher margins.
  • With the company on pace to sell over 1 million dispensers in FY22 and upwardly revising its FY22 forecast, the recent insider buying merited further investigation.
  • A full investment analysis follows in the paragraphs below.
  • Looking for a portfolio of ideas like this one? Members of The Insiders Forum get exclusive access to our model portfolio. Learn More »

Maintenance female engineer working in hydroelectric power station. Renewable energy systems.

Daniel Balakov

When you begin a journey of revenge, start by digging two graves: one for your enemy, and one for yourself.”― Jodi Picoult

Today, we take a look at a defensive name that has had some recent insider buying

Author's note: I present an update my best small and mid-cap stock ideas that insiders are buying only to subscribers of my exclusive marketplace, The Insiders Forum. Our model portfolio has more than doubled the return of its benchmark, the Russell 2000, since its launch.  To join our community and gain access to our market beating returns, just click on our logo below.

This article was written by

8.93K Followers

We are a team of analysts led by Bret Jensen, Chief Investment Strategist at Simplified Asset Management.

We run the investing group The Insiders Forum where we specialize in small and mid-cap stocks that insiders are buying. The Insiders Forum portfolio managed by Bret Jensen consists of 12-25 top stocks in different sectors of the market that are attractively valued and have had some significant and recent insider purchases. Our goal is to outperform the Russell 2000 (the benchmark) over time.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PRMW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Bret Jensen is the Founder of and authors articles for the Biotech Forum, Busted IPO Forum and Insiders Forum.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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