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

PriceSmart, Inc. (NASDAQ:PSMT) reached a new 52-week high during trading on Wednesday . The company traded as high as $139.00 and last traded at $138.0340, with a volume of 4080 shares trading hands. The stock had previously closed at $136.86.

Analyst Ratings Changes

PSMT has been the subject of several analyst reports. Weiss Ratings lowered shares of PriceSmart from a “buy (a-)” rating to a “buy (b+)” rating in a research report on Monday. Wall Street Zen downgraded PriceSmart from a “buy” rating to a “hold” rating in a research report on Sunday. One research analyst has rated the stock with a Buy rating, According to MarketBeat, PriceSmart currently has an average rating of “Buy”.

PriceSmart Stock Performance

The company has a debt-to-equity ratio of 0.11, a current ratio of 1.33 and a quick ratio of 0.55. The company has a market capitalization of $4.28 billion, a price-to-earnings ratio of 28.14 and a beta of 0.74. The stock has a 50 day simple moving average of $123.83 and a two-hundred day simple moving average of $117.05.

PriceSmart (NASDAQ:PSMT) last posted its quarterly earnings results on Wednesday, January 7th. The company reported $1.29 earnings per share for the quarter, beating analysts’ consensus estimates of $1.28 by $0.01. The firm had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.36 billion. PriceSmart had a return on equity of 12.20% and a net margin of 2.79%.The company’s revenue for the quarter was up 9.9% compared to the same quarter last year. During the same period in the previous year, the business earned $1.21 earnings per share. As a group, analysts anticipate that PriceSmart, Inc. will post 5.28 earnings per share for the current year.

Insiders Place Their Bets

In other PriceSmart news, COO John D. Hildebrandt sold 10,000 shares of the stock in a transaction on Tuesday, November 4th. The stock was sold at an average price of $115.10, for a total transaction of $1,151,000.00. Following the completion of the transaction, the chief operating officer directly owned 115,615 shares of the company’s stock, valued at approximately $13,307,286.50. This trade represents a 7.96% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Paul Kovaleski sold 1,305 shares of the company’s stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $114.55, for a total transaction of $149,487.75. Following the completion of the sale, the executive vice president owned 43,109 shares of the company’s stock, valued at approximately $4,938,135.95. This trade represents a 2.94% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 12,156 shares of company stock worth $1,400,429. Insiders own 17.00% of the company’s stock.

Institutional Trading of PriceSmart

A number of hedge funds and other institutional investors have recently made changes to their positions in PSMT. Geneos Wealth Management Inc. grew its position in shares of PriceSmart by 560.0% during 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. BNP PARIBAS ASSET MANAGEMENT Holding S.A. acquired a new position in shares of PriceSmart in the 2nd quarter valued at approximately $28,000. First Horizon Corp bought a new stake in shares of PriceSmart during the third quarter worth $30,000. Steward Partners Investment Advisory LLC boosted its position in shares of PriceSmart by 52.5% during the second 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. Finally, Mather Group LLC. bought a new position in shares of PriceSmart during the 3rd quarter worth approximately $39,000. 80.46% of the stock is currently owned by institutional investors and hedge funds.

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.