PriceSmart (NASDAQ:PSMT) Shares Gap Down – Here’s Why

PriceSmart, Inc. (NASDAQ:PSMT) gapped down before the market opened on Wednesday. The stock had previously closed at $173.11, but opened at $165.60. PriceSmart shares last traded at $165.3950, with a volume of 6,384 shares trading hands.

Analysts Set New Price Targets

PSMT has been the topic of several recent analyst reports. Weiss Ratings reiterated a “buy (b)” rating on shares of PriceSmart in a report on Wednesday, August 26th. Jefferies Financial Group restated a “buy” rating and issued a $198.00 target price on shares of PriceSmart in a report on Wednesday, August 12th. Two analysts have rated the stock with a Buy rating. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $198.00.

PriceSmart Stock Up 2.3%

The firm has a market capitalization of $5.11 billion, a PE ratio of 30.58 and a beta of 0.73. The company has a current ratio of 1.24, a quick ratio of 0.53 and a debt-to-equity ratio of 0.07. The firm has a 50-day moving average of $170.73 and a two-hundred day moving average of $166.15.

PriceSmart (NASDAQ:PSMT) last posted its quarterly earnings results on Monday, October 26th. The company reported $1.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.27 by ($0.06). The firm had revenue of $1.52 billion for the quarter, compared to analysts’ expectations of $1.46 billion. PriceSmart had a net margin of 2.83% and a return on equity of 12.15%. PriceSmart’s revenue was up 13.9% on a year-over-year basis. During the same period last year, the firm posted $1.02 EPS.

Insider Activity

In related news, EVP Francisco Velasco sold 338 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $177.87, for a total value of $60,120.06. Following the transaction, the executive vice president owned 75,321 shares in the company, valued at approximately $13,397,346.27. This trade represents a 0.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Sherry S. Bahrambeygui sold 3,499 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $197.38, for a total transaction of $690,632.62. Following the completion of the transaction, the director owned 32,150 shares in the company, valued at $6,345,767. The trade was a 9.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 17.00% of the company’s stock.

Institutional Investors Weigh In On PriceSmart

Large investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in shares of PriceSmart in the second quarter valued at $814,722,000. William Blair Investment Management LLC purchased a new stake in PriceSmart during the 2nd quarter worth $53,157,000. Progeny 3 Inc. increased its stake in PriceSmart by 18.5% during the 1st quarter. Progeny 3 Inc. now owns 272,100 shares of the company’s stock worth $40,951,000 after buying an additional 42,500 shares during the period. Bank of New York Mellon Corp purchased a new stake in PriceSmart during the 2nd quarter worth $40,930,000. Finally, Punch & Associates Investment Management Inc. acquired a new position in PriceSmart in the 2nd quarter worth $33,471,000. Institutional investors and hedge funds own 80.46% of the company’s stock.

PriceSmart Company Profile

PriceSmart, Inc operates membership warehouse clubs serving consumers and businesses in Latin America and the Caribbean. The company offers a broad selection of products at value-oriented prices, including groceries, fresh foods, beverages, household supplies, apparel, appliances, electronics, furniture and other general merchandise.

Through its warehouse clubs and digital commerce platforms, PriceSmart provides shopping and delivery options designed for both individual members and small businesses.