PriceSmart (NASDAQ:PSMT) Shares Gap Down - What's Next?

Key Points

• PriceSmart shares gapped down from a prior close of $173.11 to open at $165.60, trading near $165.40.
• Analysts remain positive, with Jefferies reiterating a “buy” rating and a $198 price target; the stock has an average “Buy” rating.
• Quarterly revenue rose 13.9% year over year to $1.52 billion, beating estimates, although EPS of $1.21 missed consensus by $0.06. Insiders sold approximately $945,000 worth of shares during the last quarter.

Shares of PriceSmart, Inc. (NASDAQ:PSMT - Get Free Report) gapped down prior to trading on Wednesday. The stock had previously closed at $173.11, but opened at $165.60. PriceSmart shares last traded at $165.3950, with a volume of 6,384 shares traded.

Analyst Upgrades and Downgrades

PSMT has been the subject of several analyst reports. Jefferies Financial Group reiterated a "buy" rating and issued a $198.00 target price on shares of PriceSmart in a research note on Wednesday, August 12th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of PriceSmart in a research note on Wednesday, August 26th. Two equities research analysts have rated the stock with a Buy rating. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $198.00.

PriceSmart Trading Down 0.8%

The firm has a market cap of $5.10 billion, a price-to-earnings ratio of 30.57 and a beta of 0.73. The firm's fifty day moving average price is $171.25 and its 200-day moving average price is $165.85.

PriceSmart (NASDAQ:PSMT - Get Free Report) last posted its earnings results on Monday, October 26th. The company reported $1.21 EPS for the quarter, missing analysts' consensus estimates of $1.27 by ($0.06). The firm had revenue of $1.52 billion during the quarter, compared to analyst estimates of $1.46 billion. The business's quarterly revenue was up 13.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.02 EPS.

Insider Activity at PriceSmart

In other PriceSmart news, EVP Francisco Velasco sold 338 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $177.87, for a total value of $60,120.06. Following the completion of the transaction, the executive vice president owned 75,321 shares in the company, valued at approximately $13,397,346.27. This represents a 0.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Sherry S. Bahrambeygui sold 3,499 shares of the firm's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $197.38, for a total transaction of $690,632.62. Following the completion of the sale, the director owned 32,150 shares of the company's stock, valued at $6,345,767. This trade represents a 9.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 4,837 shares of company stock worth $945,213 over the last quarter. Company insiders own 17.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in PriceSmart during the second quarter worth approximately $814,722,000. William Blair Investment Management LLC acquired a new stake in PriceSmart during the 2nd quarter valued at approximately $53,157,000. Bank of New York Mellon Corp acquired a new position in shares of PriceSmart in the 2nd quarter worth approximately $40,930,000. Punch & Associates Investment Management Inc. acquired a new position in shares of PriceSmart in the 2nd quarter valued at about $33,471,000. Finally, Bank of America Corp DE acquired a new stake in shares of PriceSmart during the 2nd quarter worth approximately $30,962,000. Institutional investors and hedge funds own 80.46% of the company's stock.

About PriceSmart

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.