PriceSmart (NASDAQ:PSMT) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• PriceSmart has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, indicating a cautious outlook for the stock moving forward.
• Despite the downgrade, PriceSmart's stock price saw a 3.0% increase on the day it was announced, opening at $110.74.
• The company reported earnings per share (EPS) of $1.14 for the last quarter, missing estimates slightly, while revenue increased by 7.1% year-over-year to $1.32 billion.

PriceSmart (NASDAQ:PSMT - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Friday.

PriceSmart Stock Up 3.0%

Shares of PriceSmart stock opened at $110.74 on Friday. PriceSmart has a 1 year low of $81.25 and a 1 year high of $114.01. The business has a 50-day moving average of $107.35 and a two-hundred day moving average of $99.26. The company has a market capitalization of $3.41 billion, a P/E ratio of 23.36 and a beta of 0.77. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.28 and a quick ratio of 0.50.

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

Insider Activity

In related news, EVP Francisco Velasco sold 550 shares of the stock in a transaction dated Monday, July 7th. The stock was sold at an average price of $106.31, for a total transaction of $58,470.50. Following the completion of the transaction, the executive vice president directly 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 17.10% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. BNP PARIBAS ASSET MANAGEMENT Holding S.A. bought a new position in shares of PriceSmart during the second quarter worth about $28,000. Geneos Wealth Management Inc. grew its holdings in shares of PriceSmart by 560.0% during the first quarter. Geneos Wealth Management Inc. now owns 297 shares of the company's stock worth $26,000 after buying an additional 252 shares in the last quarter. Sterling Capital Management LLC grew its holdings in shares of PriceSmart by 536.7% during the fourth quarter. Sterling Capital Management LLC now owns 312 shares of the company's stock worth $29,000 after buying an additional 263 shares in the last quarter. Steward Partners Investment Advisory LLC grew its holdings in shares of PriceSmart by 52.5% during the second quarter. Steward Partners Investment Advisory LLC now owns 363 shares of the company's stock worth $38,000 after buying an additional 125 shares in the last quarter. Finally, Ridgewood Investments LLC bought a new position in shares of PriceSmart during the first quarter worth about $42,000. 80.46% of the stock is currently owned by institutional investors.

PriceSmart Company Profile

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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