Primo Brands Stock Has Plunged 42% in a Year, so What's Behind This Investor's Recent $45 Million Buy?

On February 17, 2026, Clearline Capital LP disclosed a significant buy of 2,410,410 shares of Primo Brands (NYSE:PRMB), an estimated $44.55 million trade based on quarterly average pricing.

What happened

According to a February 17, 2026, SEC filing, Clearline Capital LP bought 2,410,410 additional shares of Primo Brands during the fourth quarter. The estimated value of the trade was $44.55 million based on the average closing price over the quarter. As a result, the fund’s position value increased by $38.93 million at quarter-end, reflecting both the purchase and changes in share price.

What else to know

• The buy lifted Primo Brands to 2% of Clearline Capital LP’s 13F reportable AUM as of December 31, 2025, below the fund's top five holdings.
• Top holdings after the filing:
  • NASDAQ: SATS: $96.04 million (7.2% of AUM)
  • NASDAQ: CORZ: $68.28 million (5.1% of AUM)
  • NASDAQ: TLN: $50.16 million (3.8% of AUM)
  • NASDAQ: MU: $48.21 million (3.6% of AUM)
  • NYSE: ROG: $43.30 million (3.3% of AUM)
• As of Monday, PRMB shares were priced at $18.68, down 42% over the past year and well underperforming the S&P 500, which is instead up about 16% in the same period.

Company overview

Company snapshot

• Primo Brands offers bottled water, purified and premium spring water, sparkling and flavored water, mineral water, water dispensers, filtration equipment, and coffee under multiple brand names.
• The firm generates revenue primarily through direct-to-consumer water delivery, self-service refill stations, and water filtration services across North America and Europe.
• It serves residential customers, small and medium-sized businesses, as well as regional and national corporations and retailers.

Primo Brands delivers bottled water and filtration services across North America and Europe, serving both consumers and businesses. It operates at scale in the non-alcoholic beverage sector, focusing on water and related services with a diverse brand portfolio. The company leverages direct distribution and recurring service models to drive stable revenue streams. Its broad customer base and established market presence provide a competitive edge in the consumer defensive sector.

What this transaction means for investors

Primo stock has been cut nearly in half over the past year, but underneath that headline decline, the business is starting to show signs of stabilization and even momentum in the areas that matter most. Fourth-quarter results point to a company that is still working through integration noise but is beginning to translate scale into operating leverage. Net sales climbed 11% to about $1.6 billion, while adjusted EBITDA jumped more than 30% to roughly $334 million, with margins expanding meaningfully.

Against that backdrop, this position sits solidly below the fund’s top holdings, which lean more heavily into higher-growth or more idiosyncratic bets, suggesting this is not the highest-conviction bet, but a calculated entry into a defensive name with improving fundamentals at a discounted valuation.

Ultimately, the turnaround is not complete, and with Primo still losing about $25 million last quarter, execution risk remains, but the combination of recurring revenue streams, improving cash flow, and early signs of margin expansion makes this the type of quiet reset story that can re-rate if management delivers.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Primo Brands. The Motley Fool has a disclosure policy.