PriceSmart (NASDAQ:PSMT) Announces Earnings Results

Key Points

• Earnings beat: PriceSmart reported EPS of $1.62 vs. $1.57 expected and revenue of $1.50 billion vs. $1.48 billion, with a net margin of 2.79% and ROE of 12.20%.
• Shares rallied and dividend announced: the stock jumped to $156.70 on above-average volume, and the company declared a $0.70 per-share dividend payable Aug. 31 with an ex-dividend date of Aug. 17 (article reports an 89.0% yield).
• Insider selling amid heavy institutional ownership: the EVP and COO sold 4,255 and 7,421 shares respectively, insiders sold 16,671 shares (~$2.28M) in the last 90 days and own 17% of the stock, while institutional investors own about 80.46%.

PriceSmart (NASDAQ:PSMT - Get Free Report) issued its earnings results on Wednesday. The company reported $1.62 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.57 by $0.05, FiscalAI reports. PriceSmart had a net margin of 2.79% and a return on equity of 12.20%. The business had revenue of $1.50 billion for the quarter, compared to analysts' expectations of $1.48 billion.

PriceSmart Price Performance

NASDAQ PSMT traded up $5.94 on Wednesday, reaching $156.70. 386,110 shares of the company's stock traded hands, compared to its average volume of 228,132. PriceSmart has a 12 month low of $81.90 and a 12 month high of $160.43. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.33 and a quick ratio of 0.55. The stock has a 50-day simple moving average of $150.08 and a 200 day simple moving average of $133.66. The stock has a market cap of $4.83 billion, a PE ratio of 31.98 and a beta of 0.74.

PriceSmart Dividend Announcement

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

Insider Buying and Selling at PriceSmart

In other news, EVP Paul Kovaleski sold 4,255 shares of the firm's stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $136.86, for a total value of $582,339.30. Following the transaction, the executive vice president owned 38,854 shares in the company, valued at approximately $5,317,558.44. This trade represents a 9.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO John D. Hildebrandt sold 7,421 shares of the firm's stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $136.88, for a total transaction of $1,015,786.48. Following the completion of the transaction, the chief operating officer owned 108,194 shares in the company, valued at $14,809,594.72. This represents a 6.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 16,671 shares of company stock valued at $2,283,051 over the last ninety days. Insiders own 17.00% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Advisors Asset Management Inc. grew its stake in shares of PriceSmart by 124.2% in the first quarter. Advisors Asset Management Inc. now owns 668 shares of the company's stock worth $59,000 after purchasing an additional 370 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of PriceSmart by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,917 shares of the company's stock worth $1,310,000 after purchasing an additional 648 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of PriceSmart by 41.7% in the first quarter. Goldman Sachs Group Inc. now owns 182,919 shares of the company's stock worth $16,069,000 after purchasing an additional 53,874 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of PriceSmart by 12.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 70,642 shares of the company's stock worth $6,206,000 after purchasing an additional 7,717 shares during the last quarter. Finally, Intech Investment Management LLC grew its stake in shares of PriceSmart by 34.7% in the first quarter. Intech Investment Management LLC now owns 18,673 shares of the company's stock worth $1,640,000 after purchasing an additional 4,806 shares during the last quarter. Institutional investors own 80.46% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on PSMT shares. Wall Street Zen cut PriceSmart from a "buy" rating to a "hold" rating in a research report on Sunday, January 11th. Weiss Ratings raised shares of PriceSmart from a "buy (b+)" rating to a "buy (a-)" rating in a report on Tuesday, March 10th. One research analyst has rated the stock with a Strong Buy rating, According to MarketBeat, PriceSmart has a consensus rating of "Strong Buy".

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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