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

PriceSmart (NASDAQ:PSMT) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Sunday.

Separately, Weiss Ratings restated a “buy (a-)” rating on shares of PriceSmart in a research note on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, According to MarketBeat, the company has a consensus rating of “Strong Buy”.

PriceSmart Trading Up 0.9%

PSMT opened at $135.64 on Friday. The stock has a market capitalization of $4.18 billion, a P/E ratio of 27.68 and a beta of 0.74. The company has a current ratio of 1.33, a quick ratio of 0.55 and a debt-to-equity ratio of 0.11. PriceSmart has a 12 month low of $81.25 and a 12 month high of $138.50. The firm’s fifty day simple moving average is $123.43 and its 200 day simple moving average is $116.83.

PriceSmart (NASDAQ:PSMT) last released its earnings results on Wednesday, January 7th. The company reported $1.29 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.28 by $0.01. PriceSmart had a return on equity of 12.20% and a net margin of 2.79%.The firm had revenue of $1.38 billion during the quarter, compared to analysts’ expectations of $1.36 billion. During the same quarter in the prior year, the company earned $1.21 EPS. The company’s revenue was up 9.9% on a year-over-year basis. As a group, research analysts anticipate that PriceSmart will post 5.28 EPS for the current fiscal year.

Insider Activity at PriceSmart

In other PriceSmart news, Director Gordon H. Hanson sold 851 shares of the firm’s stock in a transaction that occurred on Friday, November 7th. The stock was sold at an average price of $117.44, for a total value of $99,941.44. Following the completion of the transaction, the director directly owned 7,653 shares in the company, valued at $898,768.32. This trade represents a 10.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO John D. Hildebrandt sold 10,000 shares of the stock in a transaction that occurred on Tuesday, November 4th. The shares were sold at an average price of $115.10, for a total value of $1,151,000.00. Following the completion of the sale, the chief operating officer directly owned 115,615 shares of the company’s stock, valued at approximately $13,307,286.50. The trade was a 7.96% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 12,156 shares of company stock valued at $1,400,429. Insiders own 17.00% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. American Century Companies Inc. boosted its position in PriceSmart by 7.7% during the second quarter. American Century Companies Inc. now owns 1,401,706 shares of the company’s stock valued at $147,236,000 after buying an additional 100,785 shares during the period. Dimensional Fund Advisors LP lifted its stake in shares of PriceSmart by 0.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,258,234 shares of the company’s stock valued at $152,489,000 after acquiring an additional 10,537 shares during the last quarter. State Street Corp boosted its holdings in PriceSmart by 2.4% during the 2nd quarter. State Street Corp now owns 1,045,998 shares of the company’s stock valued at $109,872,000 after acquiring an additional 24,512 shares during the period. Geode Capital Management LLC boosted its holdings in PriceSmart by 1.8% during the 2nd quarter. Geode Capital Management LLC now owns 740,720 shares of the company’s stock valued at $77,812,000 after acquiring an additional 13,119 shares during the period. Finally, Victory Capital Management Inc. grew its position in PriceSmart by 37.0% during the 3rd quarter. Victory Capital Management Inc. now owns 651,499 shares of the company’s stock worth $78,955,000 after acquiring an additional 175,806 shares during the last quarter. 80.46% of the stock is currently owned by institutional investors and hedge funds.

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.