Perimeter Solutions (PRM) sees 1.24% surge due to insider purchases and strong earnings

Today, Perimeter Solutions (PRM) saw a remarkable surge in its shares, reaching a new all-time high with a 1.24% gain during the trading day. However, a strategy of purchasing PRM shares after they hit recent highs and holding onto them for a week has proven to be unprofitable over the last five years. In fact, this strategy has generated an annualized return of -4.76%, significantly underperforming the market. This suggests that relying solely on recent highs as a trigger to buy and holding for a brief period may not be a successful approach for PRM investors.

A key factor contributing to the recent uptick in Perimeter Solutions’ stock price is the notable insider buying activity. WindAcre Partnership Master Fund LP, a significant 10% owner, revealed in a recent SEC filing that they purchased 254,600 shares of PRM, totaling $3.56 million. Such a substantial insider transaction reflects a sense of confidence in the company’s future prospects, which has likely influenced the increase in the stock price.

Furthermore, Perimeter Solutions delivered a strong financial performance in the first quarter of 2025 that exceeded earnings expectations. This positive financial results likely instilled a sense of confidence in investors, further propelling the stock price upwards.

The company has also garnered attention from analysts who have upgraded their ratings, contributing to the surge in the stock price. Perimeter Solutions received a Zacks Rank #1 (Strong Buy) and a Buy rating from Morgan Stanley analyst Daniel Kutz, who also set a price target of $17. These positive actions from analysts indicate a favorable outlook for the company’s stock, reinforcing the upward momentum in its share price.