Why a Fund Trimmed an $18 Million Stake in Primo Brands Amid a 47% Stock Drop

Core Insights - Nitorum Capital sold 420,586 shares of Primo Brands Corporation, reducing its stake from 5.39% to 3.14%, with a reported position value decrease of approximately $18.53 million [2][3][6] Company Overview - Primo Brands Corporation specializes in bottled and purified water, sparkling and flavored water, water dispensers, filtration equipment, and coffee, operating under multiple brands across North America and Europe [8][9] - The company generates revenue through direct-to-consumer water delivery, water filtration services, and sales to businesses and retailers, serving a diverse customer base including residential, small and medium-sized businesses, and large corporate clients [9] Financial Performance - For the third quarter, Primo Brands reported net sales of $1.77 billion, reflecting a year-over-year increase of over 35%, largely attributed to the BlueTriton merger [10] - Adjusted EBITDA rose to $404.5 million, with margins expanding to 22.9%, up from 20.2% a year earlier [10] - The company maintains a quarterly dividend of $0.10 and has reaffirmed its cost synergy targets and free cash flow guidance [10] Market Position - As of the latest report, Primo Brands shares are priced at $16.36, down 47% over the past year, significantly underperforming the S&P 500, which is up 15% during the same period [4] - The current stake in Primo Brands represents 3.13% of Nitorum Capital's 13F assets under management, placing it outside the fund's top five holdings [3][4]