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

PriceSmart, Inc. (NASDAQ:PSMT)’s share price hit a new 52-week high during trading on Wednesday . The company traded as high as $144.67 and last traded at $145.0750, with a volume of 24959 shares. The stock had previously closed at $140.82.

Analysts Set New Price Targets

A number of equities analysts have issued reports on PSMT shares. Wall Street Zen cut PriceSmart from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Weiss Ratings downgraded shares of PriceSmart from a “buy (a-)” rating to a “buy (b+)” rating in a research report on Monday, January 12th. One investment analyst has rated the stock with a Buy rating, According to MarketBeat.com, the stock has a consensus rating of “Buy”.

PriceSmart Price Performance

The company has a 50-day moving average of $126.24 and a 200-day moving average of $118.28. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.55 and a current ratio of 1.33. The firm has a market capitalization of $4.48 billion, a price-to-earnings ratio of 29.67 and a beta of 0.74.

PriceSmart (NASDAQ:PSMT) last announced 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 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 quarter in the previous year, the firm posted $1.21 earnings per share. As a group, research analysts anticipate that PriceSmart, Inc. will post 5.28 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, COO John D. Hildebrandt sold 7,421 shares of the stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $136.88, for a total transaction of $1,015,786.48. Following the completion of the transaction, the chief operating officer directly owned 108,194 shares in the company, valued at approximately $14,809,594.72. This trade represents a 6.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Gordon H. Hanson sold 851 shares of PriceSmart stock in a transaction that occurred on Friday, November 7th. The shares were sold at an average price of $117.44, for a total value of $99,941.44. Following the completion of the sale, the director directly owned 7,653 shares in the company, valued at approximately $898,768.32. This represents a 10.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 28,827 shares of company stock worth $3,683,481 in the last ninety days. 17.00% of the stock is owned by insiders.

Hedge Funds Weigh In On PriceSmart

Several hedge funds have recently made changes to their positions in the business. First Horizon Corp bought a new stake in shares of PriceSmart in the third quarter worth $30,000. BNP PARIBAS ASSET MANAGEMENT Holding S.A. acquired a new stake in PriceSmart in the 2nd quarter valued at $28,000. Geneos Wealth Management Inc. increased its stake in 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 buying an additional 252 shares during the last quarter. Mather Group LLC. bought a new stake in PriceSmart during the 3rd quarter worth about $39,000. Finally, Steward Partners Investment Advisory LLC boosted its stake in shares of PriceSmart by 52.5% during 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 last quarter. 80.46% of the stock is owned by 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.