PriceSmart (NASDAQ:PSMT) Sets New 12-Month High - Still a Buy?

Key Points

• PriceSmart hit a new 52-week high of $158.88 on Wednesday, last trading around $157.10 on roughly 37,600 shares traded.
• Analyst sentiment is mixed but the consensus from MarketBeat data is a Strong Buy; notable moves include Wall Street Zen downgrading to "hold" while Weiss Ratings upgraded to "buy (a-)."
• The company beat quarterly EPS estimates ($1.29 vs. $1.28) with revenue up 9.9% year-over-year and announced a $0.70/share dividend (record Aug 17, payable Aug 31); insiders have recently sold stock while institutional ownership is high (~80%).

PriceSmart, Inc. (NASDAQ:PSMT - Get Free Report)'s stock price reached a new 52-week high on Wednesday . The company traded as high as $158.88 and last traded at $157.1040, with a volume of 37612 shares changing hands. The stock had previously closed at $150.76.

Analysts Set New Price Targets

PSMT has been the topic of a number of analyst reports. Wall Street Zen lowered shares of PriceSmart from a "buy" rating to a "hold" rating in a research report on Sunday, January 11th. Weiss Ratings upgraded shares of PriceSmart from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Tuesday, March 10th. One research analyst has rated the stock with a Strong Buy rating, Based on data from MarketBeat.com, the company has a consensus rating of "Strong Buy".

PriceSmart Stock Up 5.0%

The company has a market capitalization of $4.88 billion, a PE ratio of 32.31 and a beta of 0.74. The firm's 50-day simple moving average is $150.08 and its 200 day simple moving average is $133.66. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.55 and a current ratio of 1.33.

PriceSmart (NASDAQ:PSMT - Get Free Report) last issued its earnings results on Wednesday, January 7th. The company reported $1.29 EPS for the quarter, topping the consensus estimate of $1.28 by $0.01. The company had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.36 billion. PriceSmart had a net margin of 2.79% and a return on equity of 12.20%. The business's revenue was up 9.9% on a year-over-year basis. During the same period in the previous year, the firm earned $1.21 EPS. As a group, equities research analysts forecast that PriceSmart, Inc. will post 5.28 earnings per share for the current year.

PriceSmart Announces Dividend

The business also recently announced 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 dividend yield of 89.0%. The ex-dividend date is Monday, August 17th. PriceSmart's payout ratio is presently 28.57%.

Insider Buying and Selling at PriceSmart

In related news, COO John D. Hildebrandt sold 7,421 shares of the business's stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $136.88, for a total value of $1,015,786.48. Following the sale, the chief operating officer directly owned 108,194 shares in the company, valued at $14,809,594.72. The trade was a 6.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Beatriz V. Infante sold 1,995 shares of the business's stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $136.87, for a total transaction of $273,055.65. Following the completion of the sale, the director owned 10,879 shares in the company, valued at $1,489,008.73. This represents a 15.50% decrease in their ownership of the stock. 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 90 days. 17.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PriceSmart

Several institutional investors and hedge funds have recently made changes to their positions in the business. Corient Private Wealth LLC purchased a new stake in shares of PriceSmart in the 4th quarter worth about $251,000. Caitong International Asset Management Co. Ltd boosted its position in shares of PriceSmart by 45,600.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 457 shares of the company's stock worth $56,000 after buying an additional 456 shares in the last quarter. T. Rowe Price Investment Management Inc. boosted its position in shares of PriceSmart by 2.0% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 170,686 shares of the company's stock worth $20,939,000 after buying an additional 3,330 shares in the last quarter. Mercer Global Advisors Inc. ADV boosted its position in shares of PriceSmart by 37.5% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 2,447 shares of the company's stock worth $300,000 after buying an additional 668 shares in the last quarter. Finally, Susquehanna Portfolio Strategies LLC boosted its position in shares of PriceSmart by 258.9% in the 4th quarter. Susquehanna Portfolio Strategies LLC now owns 19,195 shares of the company's stock worth $2,355,000 after buying an additional 13,846 shares in the last quarter. 80.46% of the stock is currently owned by hedge funds and other institutional investors.

About PriceSmart

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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