Hennessy Advisors Inc. Invests $10.33 Million in PriceSmart, Inc. $PSMT

Key Points

• Hennessy Advisors Inc. invested approximately $10.33 million in PriceSmart, Inc., acquiring 98,300 shares and representing a 0.32% ownership stake.
• PriceSmart missed analysts' expectations for earnings per share in its recent quarterly report, posting $1.14 EPS against a $1.16 forecast, although revenue increased 7.1% year-over-year.
• Institutional investors hold a significant majority of PriceSmart's stock at 80.46%, indicating robust institutional interest in the company.

Hennessy Advisors Inc. acquired a new position in PriceSmart, Inc. (NASDAQ:PSMT - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 98,300 shares of the company's stock, valued at approximately $10,325,000. Hennessy Advisors Inc. owned 0.32% of PriceSmart as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Geneos Wealth Management Inc. boosted its stake in shares of PriceSmart by 560.0% in the first quarter. Geneos Wealth Management Inc. now owns 297 shares of the company's stock worth $26,000 after acquiring an additional 252 shares during the period. Ridgewood Investments LLC purchased a new stake in shares of PriceSmart in the first quarter worth about $42,000. Quarry LP purchased a new stake in shares of PriceSmart in the first quarter worth about $49,000. USA Financial Formulas purchased a new stake in shares of PriceSmart in the second quarter worth about $53,000. Finally, Fifth Third Bancorp lifted its position in shares of PriceSmart by 119.7% in the first quarter. Fifth Third Bancorp now owns 635 shares of the company's stock worth $56,000 after buying an additional 346 shares in the last quarter. Institutional investors own 80.46% of the company's stock.

PriceSmart Trading Up 1.3%

Shares of PSMT stock opened at $123.22 on Friday. PriceSmart, Inc. has a 1 year low of $81.25 and a 1 year high of $123.61. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.28 and a quick ratio of 0.50. The stock's 50 day simple moving average is $112.62 and its two-hundred day simple moving average is $104.48. The company has a market cap of $3.79 billion, a PE ratio of 26.00 and a beta of 0.83.

PriceSmart (NASDAQ:PSMT - Get Free Report) last issued its quarterly earnings data on Thursday, July 10th. The company reported $1.14 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.16 by ($0.02). PriceSmart had a net margin of 2.82% and a return on equity of 12.46%. The company had revenue of $1.32 billion for the quarter, compared to analysts' expectations of $1.31 billion. During the same quarter last year, the company earned $1.08 earnings per share. The company's revenue for the quarter was up 7.1% on a year-over-year basis. Research analysts predict that PriceSmart, Inc. will post 5.28 earnings per share for the current year.

Insider Buying and Selling

In other PriceSmart news, EVP Michael Mccleary sold 9,754 shares of the company's stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $110.62, for a total transaction of $1,078,987.48. Following the sale, the executive vice president directly owned 47,082 shares in the company, valued at $5,208,210.84. This represents a 17.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Francisco Velasco sold 550 shares of the company's stock in a transaction that occurred on Monday, July 7th. The shares were sold at an average price of $106.31, for a total value of $58,470.50. Following the sale, the executive vice president owned 77,908 shares in the company, valued at approximately $8,282,399.48. This trade represents a 0.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 17.10% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. Weiss Ratings reiterated a "buy (b)" rating on shares of PriceSmart in a research report on Saturday, September 27th. Wall Street Zen downgraded PriceSmart from a "buy" rating to a "hold" rating in a research report on Friday, September 26th. One research analyst has rated the stock with a Buy rating, Based on data from MarketBeat.com, PriceSmart has an average rating of "Buy".

About PriceSmart

PriceSmart, Inc owns and operates U.S.-style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. The company provides basic and private label consumer products under the Member's Selection brand, including groceries, cleaning supplies, health and beauty aids, meat, produce, deli, seafood, and poultry.

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