Haitham Khouri, the Chief Executive Officer of Perimeter Solutions, SA (NYSE:PRM), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Khouri sold a total of 260,156 ordinary shares in three separate transactions over the course of three days, from November 13 to November 15, 2024. The shares were sold at prices ranging from approximately $12.05 to $12.17, resulting in total proceeds of approximately $3.16 million.
Following these transactions, Khouri's direct ownership of Perimeter Solutions' shares decreased to 249,833. Additionally, Khouri holds an indirect interest in 1,225,385 shares through the Khouri Spousal Dynasty Trust, where he maintains sole voting and dispositive power.
In other recent news, Perimeter Solutions has demonstrated strong growth in Q3 2024, particularly in their Fire Safety segment. The company reported a significant 113% increase in Fire Safety revenue to $251.8 million for Q3, and a 97% increase year-to-date to $375.5 million. Adjusted EBITDA for the segment also experienced a sharp rise, with figures indicating a year-to-date increase of 208% to $212.9 million. These recent developments reflect the company's strategic focus on profitable new business, productivity improvements, and value-based pricing. The management also outlined their plans for capital allocation, emphasizing reinvestment, mergers and acquisitions, share repurchases, and the potential for special dividends. Furthermore, Perimeter Solutions is reportedly transitioning from a highly leveraged position to being under-leveraged. The company anticipates strong free cash flow in 2025 and is actively seeking M&A opportunities to enhance EBITDA and free cash flow.
InvestingPro Insights
The recent insider selling by CEO Haitham Khouri comes at a time when Perimeter Solutions (NYSE:PRM) has experienced significant stock price volatility and growth. According to InvestingPro data, the company's stock has seen a remarkable 186.12% price total return over the past year, with a 51.06% increase in the last six months alone. This strong performance aligns with an InvestingPro Tip indicating that the stock has shown a high return over the last year.
However, it's worth noting that the stock has taken a hit recently, with a 12.96% decline in the past week. This short-term dip is reflected in another InvestingPro Tip, which points out that the stock has taken a big hit over the last week. This recent downturn might provide context for the CEO's decision to sell a portion of his holdings.
Despite the recent sell-off, Perimeter Solutions has shown impressive revenue growth. The company's revenue for the last twelve months as of Q3 2024 stood at $534.19 million, with a robust revenue growth rate of 75.76% over the same period. This strong financial performance is underscored by an InvestingPro Tip suggesting that analysts anticipate sales growth in the current year.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 12 more tips available for Perimeter Solutions. These tips can provide a deeper understanding of the company's financial health and market position, helping investors make more informed decisions.
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