PriceSmart (NASDAQ:PSMT) Shares Break Above 50-Day Moving Average After Earnings Miss

Key Points

• PriceSmart shares rose above their 50-day moving average, reaching $174.33 and last trading at $173.11 after the company reported quarterly revenue of $1.52 billion, up 13.9% year over year.
• Despite the revenue beat, earnings per share came in at $1.21, below the $1.27 analyst consensus; prior-year EPS was $1.02.
• Analysts maintain a consensus “Buy” rating with an average price target of $198, while institutional investors own 80.46% of the company and insiders have sold shares recently.

PriceSmart, Inc. (NASDAQ:PSMT - Get Free Report)'s stock price passed above its 50-day moving average during trading on Monday following a stronger than expected earnings report. The stock has a 50-day moving average of $171.52 and traded as high as $174.33. PriceSmart shares last traded at $173.11, with a volume of 339,183 shares.

The company reported $1.21 earnings per share for the quarter, missing analysts' consensus estimates of $1.27 by ($0.06). PriceSmart had a return on equity of 12.16% and a net margin of 2.82%. The business had revenue of $1.52 billion during the quarter, compared to analysts' expectations of $1.46 billion. During the same quarter in the previous year, the business earned $1.02 EPS. The business's revenue for the quarter was up 13.9% on a year-over-year basis.

Analyst Upgrades and Downgrades

PSMT has been the topic of several recent analyst reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of PriceSmart in a research note on Wednesday, August 26th. Jefferies Financial Group restated a "buy" rating and issued 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. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $198.00.

Insider Activity

In related news, Director Sherry Bahrambeygui sold 3,499 shares of the company's stock in a transaction dated Monday, August 3rd. The shares were 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 of the company's stock, valued at $6,345,767. This represents a 9.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Francisco Velasco sold 338 shares of the stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $177.87, for a total transaction of $60,120.06. Following the transaction, the executive vice president owned 75,321 shares in the company, valued at approximately $13,397,346.27. The trade was a 0.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 6,937 shares of company stock valued at $1,349,392 over the last 90 days. 17.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PriceSmart

Several large investors have recently modified their holdings of the business. Hedeker Wealth LLC increased its holdings in PriceSmart by 1.5% during the third quarter. Hedeker Wealth LLC now owns 19,149 shares of the company's stock valued at $3,238,000 after buying an additional 280 shares during the period. Signaturefd LLC raised its stake in PriceSmart by 48.7% in the third quarter. Signaturefd LLC now owns 766 shares of the company's stock worth $130,000 after buying an additional 251 shares in the last quarter. Tectonic Advisors LLC lifted its holdings in PriceSmart by 17.3% during the third quarter. Tectonic Advisors LLC now owns 9,453 shares of the company's stock worth $1,599,000 after buying an additional 1,394 shares during the period. Fifth Third Wealth Advisors LLC lifted its holdings in PriceSmart by 35.8% during the third quarter. Fifth Third Wealth Advisors LLC now owns 1,502 shares of the company's stock worth $254,000 after buying an additional 396 shares during the period. Finally, Sterling Capital Management LLC boosted its position in PriceSmart by 835.5% during the 3rd quarter. Sterling Capital Management LLC now owns 870 shares of the company's stock valued at $147,000 after acquiring an additional 777 shares in the last quarter. Institutional investors own 80.46% of the company's stock.

PriceSmart Price Performance

The company has a current ratio of 1.28, a quick ratio of 0.53 and a debt-to-equity ratio of 0.08. The firm has a market cap of $5.34 billion, a P/E ratio of 33.23 and a beta of 0.73. The firm has a 50-day simple moving average of $171.52 and a 200-day simple moving average of $165.66.

PriceSmart Company Profile

PriceSmart, Inc operates membership warehouse clubs serving consumers and businesses in Latin America and the Caribbean. The company offers a broad selection of products at value-oriented prices, including groceries, fresh foods, beverages, household supplies, apparel, appliances, electronics, furniture and other general merchandise.

Through its warehouse clubs and digital commerce platforms, PriceSmart provides shopping and delivery options designed for both individual members and small businesses.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.