PriceSmart (PSMT) Upgraded to “Buy” by Zacks Investment Research
Zacks Investment Research upgraded shares of PriceSmart (NASDAQ:PSMT) from a hold rating to a buy rating in a research note issued to investors on Saturday morning. The brokerage currently has $92.00 target price on the stock.
According to Zacks, “PriceSmart, Inc. is primarily engaged in the operation of membership shopping warehouses in international markets. The company’s business consists of international membership shopping stores similar to, but smaller in size than, warehouse clubs in the United States. The warehouses sell basic consumer goods with an emphasis on quality, low prices and efficient operations. By offering low prices on brand name and private label merchandise, the warehouses seek to generate sufficient sales volumes to operate profitably at relatively low gross margins. “
A number of other research analysts also recently weighed in on the stock. Ifs Securities raised shares of PriceSmart from a market perform rating to an outperform rating in a research report on Friday, December 29th. TheStreet raised shares of PriceSmart from a c+ rating to a b rating in a research report on Monday, October 23rd. BidaskClub downgraded shares of PriceSmart from a hold rating to a sell rating in a report on Thursday, December 21st. Scotiabank downgraded shares of PriceSmart to a hold rating and set a $90.00 price objective for the company. in a report on Friday, January 5th. Finally, Roth Capital reaffirmed a buy rating and issued a $100.00 price objective on shares of PriceSmart in a report on Monday, October 2nd. Four research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. PriceSmart presently has a consensus rating of Hold and a consensus target price of $91.75.
PriceSmart (NASDAQ:PSMT) last released its earnings results on Thursday, January 4th. The company reported $0.74 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.82 by ($0.08). PriceSmart had a net margin of 2.92% and a return on equity of 12.61%. The company had revenue of $767.10 million for the quarter, compared to the consensus estimate of $764.67 million. During the same period in the prior year, the company earned $0.82 earnings per share. The firm’s revenue was up 3.7% on a year-over-year basis. sell-side analysts anticipate that PriceSmart will post 3.2 earnings per share for the current fiscal year.
In related news, CFO John Heffner sold 3,125 shares of the firm’s stock in a transaction that occurred on Tuesday, November 14th. The shares were sold at an average price of $80.00, for a total value of $250,000.00. Following the completion of the transaction, the chief financial officer now directly owns 27,121 shares of the company’s stock, valued at approximately $2,169,680. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP John D. Hildebrandt sold 1,614 shares of the firm’s stock in a transaction that occurred on Tuesday, October 31st. The stock was sold at an average price of $83.47, for a total transaction of $134,720.58. Following the completion of the transaction, the executive vice president now directly owns 17,237 shares of the company’s stock, valued at $1,438,772.39. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 44,997 shares of company stock valued at $3,683,782. 28.00% of the stock is owned by insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP boosted its holdings in PriceSmart by 1.9% in the 3rd quarter. Dimensional Fund Advisors LP now owns 654,058 shares of the company’s stock worth $58,374,000 after buying an additional 12,039 shares during the period. Brown Advisory Inc. boosted its holdings in PriceSmart by 48.8% in the 3rd quarter. Brown Advisory Inc. now owns 302,536 shares of the company’s stock valued at $27,001,000 after purchasing an additional 99,167 shares during the period. Thornburg Investment Management Inc. boosted its holdings in PriceSmart by 3.6% in the 3rd quarter. Thornburg Investment Management Inc. now owns 133,225 shares of the company’s stock valued at $11,890,000 after purchasing an additional 4,652 shares during the period. Schwab Charles Investment Management Inc. boosted its holdings in PriceSmart by 6.0% in the 3rd quarter. Schwab Charles Investment Management Inc. now owns 149,174 shares of the company’s stock valued at $13,314,000 after purchasing an additional 8,381 shares during the period. Finally, Wells Fargo & Company MN boosted its holdings in PriceSmart by 3.5% in the 3rd quarter. Wells Fargo & Company MN now owns 282,737 shares of the company’s stock valued at $25,235,000 after purchasing an additional 9,433 shares during the period. 72.83% of the stock is owned by institutional investors.
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PriceSmart Company Profile
PriceSmart, Inc, through its subsidiaries, is engaged in the international operation of membership shopping in warehouse clubs. In addition, the Company operates distribution centers and offices in the United States. The Company’s segments include the United States, Central America, the Caribbean and Colombia.
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