First Trust Advisors LP Cuts Stock Holdings in PriceSmart, Inc. $PSMT

Key Points

• First Trust Advisors LP trimmed its stake in PriceSmart by 2.2% in Q3, leaving it with 787,535 shares (about a 2.55% ownership) worth $95.44 million, while institutional investors collectively own roughly 80.46% of the company.
• Insider selling accelerated recently: COO John D. Hildebrandt sold 7,421 shares and a director sold 1,995, with insiders offloading 16,671 shares (~$2.28 million) over the past three months, though insiders still hold 17% of the stock.
• Operational update: PriceSmart slightly beat Q results (EPS $1.29 vs. $1.28 expected; revenue $1.38B, +9.9% y/y) and declared a $0.70 dividend payable Aug. 31 (ex-dividend Aug. 17), with the article reporting a stated yield of 89.0%.

First Trust Advisors LP lowered its position in shares of PriceSmart, Inc. (NASDAQ:PSMT - Free Report) by 2.2% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 787,535 shares of the company's stock after selling 17,364 shares during the quarter. First Trust Advisors LP owned approximately 2.55% of PriceSmart worth $95,441,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. First Horizon Corp purchased a new stake in shares of PriceSmart during the third quarter worth approximately $30,000. Geneos Wealth Management Inc. raised its stake in PriceSmart by 560.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 297 shares of the company's stock valued at $26,000 after purchasing an additional 252 shares during the last quarter. Mather Group LLC. purchased a new position in PriceSmart in the 3rd quarter valued at $39,000. Steward Partners Investment Advisory LLC boosted its stake in PriceSmart by 52.5% during the 2nd quarter. Steward Partners Investment Advisory LLC now owns 363 shares of the company's stock worth $38,000 after purchasing an additional 125 shares during the last quarter. Finally, AlphaQuest LLC boosted its stake in PriceSmart by 127.5% during the 3rd quarter. AlphaQuest LLC now owns 414 shares of the company's stock worth $50,000 after purchasing an additional 232 shares during the last quarter. Hedge funds and other institutional investors own 80.46% of the company's stock.

Insider Activity

In other PriceSmart news, COO John D. Hildebrandt sold 7,421 shares of the business's stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $136.88, for a total value of $1,015,786.48. Following the transaction, the chief operating officer directly owned 108,194 shares in the company, valued at $14,809,594.72. The trade was a 6.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Beatriz V. Infante sold 1,995 shares of the stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $136.87, for a total transaction of $273,055.65. Following the completion of the sale, the director directly owned 10,879 shares of the company's stock, valued at approximately $1,489,008.73. This trade represents a 15.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 16,671 shares of company stock worth $2,283,051. Company insiders own 17.00% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings lowered shares of PriceSmart from a "buy (a-)" rating to a "buy (b+)" rating in a report on Monday, January 12th. Wall Street Zen lowered shares of PriceSmart from a "buy" rating to a "hold" rating in a research report on Sunday, January 11th. One analyst has rated the stock with a Buy rating, According to MarketBeat.com, the stock presently has a consensus rating of "Buy".

PriceSmart Price Performance

NASDAQ:PSMT opened at $148.84 on Tuesday. PriceSmart, Inc. has a one year low of $81.25 and a one year high of $158.01. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.55 and a current ratio of 1.33. The stock has a market cap of $4.59 billion, a PE ratio of 30.38 and a beta of 0.73. The stock has a 50 day moving average price of $144.50 and a 200 day moving average price of $128.27.

PriceSmart (NASDAQ:PSMT - Get Free Report) last released its quarterly earnings data on Wednesday, January 7th. The company reported $1.29 earnings per share for the quarter, topping analysts' consensus estimates of $1.28 by $0.01. The company had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.36 billion. PriceSmart had a return on equity of 12.20% and a net margin of 2.79%.The firm's revenue for the quarter was up 9.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.21 earnings per share. Equities research analysts expect that PriceSmart, Inc. will post 5.28 EPS for the current fiscal year.

PriceSmart Announces Dividend

The company also recently declared a dividend, which will be paid on Monday, August 31st. Stockholders of record on Monday, August 17th will be given a dividend of $0.70 per share. The ex-dividend date of this dividend is Monday, August 17th. This represents a dividend yield of 89.0%. PriceSmart's payout ratio is presently 28.57%.

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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