BlackRock Inc. Makes New Investment in PriceSmart, Inc. $PSMT

Key Points

• BlackRock initiated a major PriceSmart position by purchasing 4.17 million shares valued at approximately $814.7 million, giving it a 13.51% stake. Institutional investors collectively own 80.46% of the company.
• PriceSmart’s latest quarterly revenue rose 12.5% year over year to $1.48 billion, exceeding expectations, although earnings per share of $1.28 narrowly missed estimates.
• Analyst sentiment remains positive, with PriceSmart holding an average “Buy” rating and a $198 price target, while company insiders have sold 7,737 shares worth about $1.5 million over the past three months.

BlackRock Inc. purchased a new position in shares of PriceSmart, Inc. (NASDAQ:PSMT - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 4,170,790 shares of the company's stock, valued at approximately $814,722,000. BlackRock Inc. owned about 13.51% of PriceSmart at the end of the most recent reporting period.

A number of other hedge funds have also recently modified their holdings of the business. State Street Corp grew its holdings in PriceSmart by 2.4% during the second quarter. State Street Corp now owns 1,045,998 shares of the company's stock valued at $109,872,000 after purchasing an additional 24,512 shares during the period. Geode Capital Management LLC increased its position in PriceSmart by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 763,261 shares of the company's stock worth $93,640,000 after buying an additional 7,095 shares in the last quarter. Invesco Ltd. raised its stake in shares of PriceSmart by 13.3% in the third quarter. Invesco Ltd. now owns 624,985 shares of the company's stock worth $75,742,000 after buying an additional 73,419 shares during the period. Morgan Stanley raised its stake in shares of PriceSmart by 1.7% in the fourth quarter. Morgan Stanley now owns 495,799 shares of the company's stock worth $60,820,000 after buying an additional 8,428 shares during the period. Finally, Pertento Partners LLP lifted its position in shares of PriceSmart by 17.3% during the 4th quarter. Pertento Partners LLP now owns 488,387 shares of the company's stock valued at $59,910,000 after buying an additional 71,879 shares in the last quarter. Institutional investors own 80.46% of the company's stock.

Insider Buying and Selling

In other PriceSmart news, EVP Francisco Velasco sold 338 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $177.87, for a total transaction of $60,120.06. Following the completion of the transaction, the executive vice president owned 75,321 shares in the company, valued at $13,397,346.27. This trade represents a 0.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Sherry S. Bahrambeygui sold 3,499 shares of PriceSmart stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $197.38, for a total value of $690,632.62. Following the completion of the sale, the director directly owned 32,150 shares in the company, valued at approximately $6,345,767. The trade was a 9.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 7,737 shares of company stock worth $1,506,176. Corporate insiders own 17.00% of the company's stock.

PriceSmart Trading Up 2.0%

PSMT stock opened at $172.87 on Friday. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 0.53. PriceSmart, Inc. has a 1-year low of $105.46 and a 1-year high of $199.84. The business has a 50 day simple moving average of $186.27 and a two-hundred day simple moving average of $167.19. The company has a market capitalization of $5.33 billion, a price-to-earnings ratio of 33.18 and a beta of 0.76.

PriceSmart (NASDAQ:PSMT - Get Free Report) last released its earnings results on Wednesday, July 8th. The company reported $1.28 EPS for the quarter, missing the consensus estimate of $1.32 by ($0.04). The company had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.43 billion. PriceSmart had a return on equity of 12.16% and a net margin of 2.82%.PriceSmart's quarterly revenue was up 12.5% compared to the same quarter last year. During the same period last year, the firm posted $1.14 EPS.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on PSMT. Weiss Ratings downgraded PriceSmart from a "buy (b+)" rating to a "buy (b)" rating in a research note on Friday, May 29th. Jefferies Financial Group restated a "buy" rating and set a $198.00 target price on shares of PriceSmart in a research note on Wednesday, August 12th. Two investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, PriceSmart currently has an average rating of "Buy" and an average price target of $198.00.

PriceSmart Company Profile

PriceSmart, Inc NASDAQ: PSMT is a U.S.-based retailer specializing in membership warehouse clubs. Founded in 1993, the company operates under a business model that offers bulk quantities of goods at discounted prices to individuals and businesses that purchase annual memberships. PriceSmart's value proposition centers on low-cost operations, high-volume purchasing, and a no-frills shopping environment designed to pass savings directly to its members.

The company's product assortment covers a broad range of merchandise categories, including groceries and fresh produce, household essentials, electronics, appliances, office supplies, furniture, and health and beauty items.

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