East Coast Asset Management Dumps $5 Million of Perimeter Solutions Amid Stock's 800% Rise in the Last Two Years

What happened

According to an SEC filing dated Feb. 17, 2026, East Coast Asset Management, LLC. reduced its position in Perimeter Solutions (NYSE:PRM) by 207,593 shares during the fourth quarter. The estimated transaction value was $5.24 million, calculated using the average quarterly closing price. At quarter-end, the fund held 1,366,380 shares valued at $37.62 million. The position’s value declined by $2.38 million, reflecting both trading activity and stock price movements.

What else to know

After the sale, PRM now represents 11.06% of East Coast Asset Management, LLC.'s 13F assets.

• Top holdings after the filing:
  • Alphabet: $63.23 million (18.6% of AUM)
  • Perimeter Solutions: $37.62 million (11.1% of AUM)
  • Tesla: $36.69 million (10.8% of AUM)
  • TransDigm Group: $31.04 million (9.1% of AUM)
  • Berkshire Hathaway: $15.38 million (4.5% of AUM)

As of March 11, 2026, shares of Perimeter Solutions were priced at $23.29, up 155.3% over one year, with an alpha versus the S&P 500 of 134 percentage points.

Company overview

Company snapshot

Perimeter Solutions:

• Manufactures and supplies firefighting products, firefighting foams, and lubricant additives, with brands including PHOS-CHEK, FIRE-TROL, AUXQUIMIA, SOLBERG, and BIOGEMA
• Operates through two segments: Fire Safety (fire retardants and specialized firefighting equipment) and Oil Additives (chemical additives for lubricants)
• Serves federal, state, provincial, municipal, and commercial customers in the United States, Germany, and internationally

Perimeter Solutions is a specialty chemicals company with a global footprint, focused on high-value fire safety products and lubricant additives. Its dual-segment structure enables it to address both public sector emergency response needs and industrial lubricant markets. With a diversified customer base and established brands, Perimeter Solutions leverages technical expertise and regulatory relationships to maintain a competitive advantage in mission-critical applications.

What this transaction means for investors

Despite selling its Perimeter Solutions stock over the last three quarters, East Coast Asset Management has seen its allocation in the company grow from 7.4% to 11.1%. PRM stock briefly dipped below $3 in 2023, but has since soared over 800% from that mark, leaving East Coast in the enviable position of having to sell shares fairly consistently to keep the position at a reasonable size.

While Perimeter is mostly known for its firefighting products -- this is a notoriously cyclical business, and management is quickly trying to diversify the company’s operations through M&A. With its CEO bringing a history in private equity, the company is likely to shift toward becoming a decentralized portfolio of businesses over time, if everything works out. PRM recently acquired MMT (Medical Manufacturing Technologies), marking its first major move outside of its existing areas of business.

Time will only tell whether this works out for investors, but it is an interesting way for the company to deploy the cash it earns in wildfire-heavy years, since it doesn’t have much growth potential in that exact niche. This will be a fascinating shift in the company’s business strategy, but it also requires a leap of faith from investors, given the added risk of entering previously unknown markets. That may also be why East Coast is selling some of its PRM shares. I’ll be curious to see what this stock looks like a few years from now, but I’d rather wait to buy shares once they show some success with a few acquisition integrations over time.

Josh Kohn-Lindquist has positions in Alphabet and Tesla. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, Tesla, and TransDigm Group. The Motley Fool has a disclosure policy.