PriceSmart (NASDAQ:PSMT) Reaches New 12-Month High - Should You Buy?

Key Points

• PriceSmart (NASDAQ:PSMT) shares hit a new 52-week high of $121.50, closing last at $120.94, driven by significant trading volume.
• Wall Street analysts upgraded PriceSmart from a "hold" to a "buy" rating, reflecting positive growth expectations.
• The company's recent quarterly earnings reported a 7.1% revenue increase year-over-year, although EPS fell slightly short of estimates.

PriceSmart, Inc. (NASDAQ:PSMT - Get Free Report) shares reached a new 52-week high during mid-day trading on Friday . The stock traded as high as $121.50 and last traded at $120.94, with a volume of 264995 shares traded. The stock had previously closed at $117.00.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen raised PriceSmart from a "hold" rating to a "buy" rating in a research report on Friday, September 5th.

PriceSmart Trading Up 3.4%

The stock has a 50-day simple moving average of $110.88 and a two-hundred day simple moving average of $102.93. The company has a debt-to-equity ratio of 0.07, a quick ratio of 0.50 and a current ratio of 1.28. The firm has a market cap of $3.72 billion, a PE ratio of 25.51 and a beta of 0.79.

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

Insider Activity

In other news, EVP Francisco Velasco sold 550 shares of the company's stock in a transaction dated Monday, July 7th. The shares were sold at an average price of $106.31, for a total transaction of $58,470.50. Following the completion of the sale, the executive vice president owned 77,908 shares of the company's stock, valued at $8,282,399.48. This represents a 0.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Michael Mccleary sold 9,754 shares of the company's stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $110.62, for a total transaction of $1,078,987.48. Following the sale, the executive vice president directly owned 47,082 shares of the company's stock, valued at $5,208,210.84. The trade was a 17.16% decrease in their position. The disclosure for this sale can be found here. 17.10% of the stock is owned by corporate insiders.

Institutional Trading of PriceSmart

A number of institutional investors have recently bought and sold shares of PSMT. Geneos Wealth Management Inc. increased its stake in PriceSmart by 560.0% in the first quarter. Geneos Wealth Management Inc. now owns 297 shares of the company's stock worth $26,000 after purchasing an additional 252 shares during the period. BNP PARIBAS ASSET MANAGEMENT Holding S.A. purchased a new stake in PriceSmart in the second quarter worth $28,000. Steward Partners Investment Advisory LLC increased its stake in PriceSmart by 52.5% in the second quarter. Steward Partners Investment Advisory LLC now owns 363 shares of the company's stock worth $38,000 after purchasing an additional 125 shares during the period. Ridgewood Investments LLC purchased a new stake in PriceSmart in the first quarter worth $42,000. Finally, Quarry LP purchased a new stake in PriceSmart in the first quarter worth $49,000. 80.46% of the stock is currently owned by institutional investors.

About PriceSmart

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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