PriceSmart (NASDAQ:PSMT) Stock Breaks Above 200 Day Moving Average - Here's Why

Key Points

• PriceSmart shares crossed above their 200-day moving average, reaching $171.70 before closing at $169.11. The stock’s 200-day average is $171.21, while its 50-day average is $176.49.
• Analysts remain bullish, with two Buy ratings and a consensus price target of $198, implying potential upside from the reported trading level.
• PriceSmart’s latest quarter showed 12.5% year-over-year revenue growth to $1.48 billion, although earnings per share of $1.28 fell short of the $1.32 consensus estimate. Insiders sold $1.5 million of stock over the past 90 days, while institutional ownership stands at 80.46%.

PriceSmart, Inc. (NASDAQ:PSMT - Get Free Report)'s share price crossed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $171.21 and traded as high as $171.70. PriceSmart shares last traded at $169.11, with a volume of 267,842 shares changing hands.

Wall Street Analyst Weigh In

Several brokerages have issued reports on PSMT. Weiss Ratings reaffirmed a "buy (b)" rating on shares of PriceSmart in a research note on Wednesday, August 26th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $198.00 price objective on shares of PriceSmart in a research note on Wednesday, August 12th. Two analysts have rated the stock with a Buy rating, According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $198.00.

PriceSmart Price Performance

The firm has a fifty day moving average of $176.49 and a two-hundred day moving average of $171.21. 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 company has a market capitalization of $5.22 billion, a PE ratio of 32.46 and a beta of 0.76.

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

Insiders Place Their Bets

In other PriceSmart news, EVP Francisco Velasco sold 338 shares of the stock in a transaction that occurred 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 sale, the executive vice president owned 75,321 shares in the company, valued at approximately $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 can be accessed through the SEC website. Also, Director Sherry 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 owned 32,150 shares in the company, valued at approximately $6,345,767. This represents a 9.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 7,737 shares of company stock worth $1,506,176. 17.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of PriceSmart during the second quarter valued at about $814,722,000. William Blair Investment Management LLC purchased a new stake in PriceSmart in the second quarter worth about $53,157,000. Bank of New York Mellon Corp purchased a new stake in PriceSmart in the second quarter worth about $40,930,000. Punch & Associates Investment Management Inc. purchased a new stake in PriceSmart in the second quarter worth about $33,471,000. Finally, Bank of America Corp DE bought a new stake in PriceSmart during the 2nd quarter valued at approximately $30,962,000. 80.46% of the stock is owned by hedge funds and other institutional investors.

About PriceSmart

PriceSmart, Inc operates membership-based warehouse clubs serving consumers and businesses in markets across Central America, the Caribbean and Colombia. The company is headquartered in San Diego, California, and its shares trade on the Nasdaq under the symbol PSMT.

Its warehouse clubs offer a broad selection of products, including groceries, fresh foods, household supplies, health and beauty items, appliances, electronics, furniture, apparel and other general merchandise. PriceSmart also provides members with access to services such as optical offerings, pharmacies and selected ancillary services, depending on the market.

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