PriceSmart (NASDAQ:PSMT) Shares Gap Up on Earnings Beat

PriceSmart, Inc. (NASDAQ:PSMT) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $156.70, but opened at $161.85. PriceSmart shares last traded at $156.71, with a volume of 133,939 shares trading hands.

The company reported $1.62 earnings per share for the quarter, topping analysts’ consensus estimates of $1.57 by $0.05. PriceSmart had a net margin of 2.79% and a return on equity of 12.20%. The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.48 billion. During the same quarter in the prior year, the business posted $1.45 EPS. The firm’s revenue was up 9.7% compared to the same quarter last year.

PriceSmart Dividend Announcement

The company also recently disclosed a dividend, which will be paid on Monday, August 31st. Shareholders of record on Monday, August 17th will be given a $0.70 dividend. This represents a yield of 89.0%. The ex-dividend date of this dividend is Monday, August 17th. PriceSmart’s dividend payout ratio is presently 28.57%.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on PSMT shares. Wall Street Zen downgraded shares of PriceSmart from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. Weiss Ratings raised shares of PriceSmart from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Tuesday, March 10th. One investment analyst has rated the stock with a Strong Buy rating, Based on data from MarketBeat, PriceSmart presently has a consensus rating of “Strong Buy”.

Insider Activity at PriceSmart

In related news, Director Beatriz V. Infante sold 1,995 shares of the firm’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $136.87, for a total value of $273,055.65. Following the completion of the transaction, the director directly owned 10,879 shares of the company’s stock, valued at approximately $1,489,008.73. This trade represents a 15.50% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Leon C. Janks sold 3,000 shares of the firm’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $137.29, for a total transaction of $411,870.00. Following the completion of the transaction, the director directly owned 30,734 shares of the company’s stock, valued at approximately $4,219,470.86. This trade represents a 8.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 16,671 shares of company stock worth $2,283,051. 17.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of PSMT. Geneos Wealth Management Inc. boosted its holdings in PriceSmart by 560.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 297 shares of the company’s stock worth $26,000 after buying an additional 252 shares during the period. UMB Bank n.a. boosted its holdings in PriceSmart by 76.0% in the 4th quarter. UMB Bank n.a. now owns 227 shares of the company’s stock worth $28,000 after buying an additional 98 shares during the period. First Horizon Corp bought a new position in PriceSmart in the 3rd quarter worth approximately $30,000. CENTRAL TRUST Co bought a new position in PriceSmart in the 4th quarter worth approximately $32,000. Finally, Steward Partners Investment Advisory LLC boosted its holdings in PriceSmart by 52.5% in the 2nd quarter. Steward Partners Investment Advisory LLC now owns 363 shares of the company’s stock worth $38,000 after buying an additional 125 shares during the period. 80.46% of the stock is owned by institutional investors.

PriceSmart Stock Performance

The company’s fifty day moving average is $150.37 and its 200 day moving average is $133.82. The company has a market capitalization of $4.82 billion, a P/E ratio of 31.99 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 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.