Wall Street Zen Downgrades PriceSmart (NASDAQ:PSMT) to Hold

Key Points

• Wall Street Zen has downgraded PriceSmart (NASDAQ: PSMT) from a "buy" rating to a "hold" rating in a recent research note.
• PriceSmart reported $1.14 earnings per share for the last quarter, missing analyst expectations by $0.02, but showed a 7.1% increase in quarterly revenue year-over-year.
• Insider transactions included sales by executive vice presidents, with Francisco Velasco and Michael McCleary reducing their holdings significantly in recent months.

PriceSmart (NASDAQ:PSMT - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Friday.

PriceSmart Stock Performance

Shares of PriceSmart stock traded up $3.94 on Friday, reaching $120.94. The stock had a trading volume of 265,332 shares, compared to its average volume of 220,433. The business's 50-day moving average price is $111.10 and its two-hundred day moving average price is $103.17. The company has a debt-to-equity ratio of 0.07, a quick ratio of 0.50 and a current ratio of 1.28. PriceSmart has a fifty-two week low of $81.25 and a fifty-two week high of $121.50. The stock has a market cap of $3.72 billion, a P/E ratio of 25.51 and a beta of 0.79.

PriceSmart (NASDAQ:PSMT - Get Free Report) last issued its quarterly earnings data on Thursday, July 10th. The company reported $1.14 earnings per share for the quarter, missing analysts' consensus estimates of $1.16 by ($0.02). PriceSmart had a return on equity of 12.46% and a net margin of 2.82%.The firm had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.31 billion. During the same quarter in the previous year, the firm posted $1.08 earnings per share. PriceSmart's quarterly revenue was up 7.1% compared to the same quarter last year. On average, sell-side analysts forecast that PriceSmart will post 5.28 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Francisco Velasco sold 550 shares of the business's stock in a transaction on Monday, July 7th. The shares were sold at an average price of $106.31, for a total transaction of $58,470.50. Following the transaction, the executive vice president owned 77,908 shares of the company's stock, valued at approximately $8,282,399.48. The trade was a 0.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Michael Mccleary sold 9,754 shares of the business's stock in a transaction on Tuesday, September 9th. The stock was sold at an average price of $110.62, for a total transaction of $1,078,987.48. Following the transaction, the executive vice president directly owned 47,082 shares in the company, valued at $5,208,210.84. This trade represents a 17.16% decrease in their position. The disclosure for this sale can be found here. Insiders own 17.10% of the company's stock.

Hedge Funds Weigh In On PriceSmart

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. BNP PARIBAS ASSET MANAGEMENT Holding S.A. bought a new stake in PriceSmart in the second quarter valued at about $28,000. Geneos Wealth Management Inc. grew its stake in shares of PriceSmart by 560.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 297 shares of the company's stock valued at $26,000 after purchasing an additional 252 shares during the period. Steward Partners Investment Advisory LLC grew its stake in shares of PriceSmart by 52.5% in the 2nd quarter. Steward Partners Investment Advisory LLC now owns 363 shares of the company's stock valued at $38,000 after purchasing an additional 125 shares during the period. Ridgewood Investments LLC acquired a new position in shares of PriceSmart in the 1st quarter worth approximately $42,000. Finally, Osaic Holdings Inc. raised its holdings in shares of PriceSmart by 57.2% in the 2nd quarter. Osaic Holdings Inc. now owns 492 shares of the company's stock worth $52,000 after buying an additional 179 shares in the last quarter. 80.46% of the stock is 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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