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

PriceSmart, Inc. (NASDAQ:PSMT)’s share price gapped up before the market opened on Thursday following a stronger than expected earnings report. 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 the consensus estimate 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 analysts’ expectations of $1.48 billion. During the same quarter in the previous year, the firm posted $1.45 earnings per share. PriceSmart’s revenue for the quarter was up 9.7% on a year-over-year basis.

PriceSmart Dividend Announcement

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

Analyst Upgrades and Downgrades

PSMT has been the topic of several recent analyst reports. Wall Street Zen lowered shares of PriceSmart from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Weiss Ratings upgraded shares of PriceSmart from a “buy (b+)” rating to a “buy (a-)” rating in a report on Tuesday, March 10th. One equities research analyst has rated the stock with a Strong Buy rating, Based on data from MarketBeat.com, PriceSmart presently has a consensus rating of “Strong Buy”.

Insider Activity at PriceSmart

In other news, Director Beatriz V. Infante sold 1,995 shares of the company’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $136.87, for a total transaction of $273,055.65. Following the transaction, the director owned 10,879 shares in the company, valued at approximately $1,489,008.73. This represents a 15.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Leon C. Janks sold 3,000 shares of the company’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $137.29, for a total transaction of $411,870.00. Following the transaction, the director owned 30,734 shares in the company, valued at $4,219,470.86. This represents a 8.89% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 16,671 shares of company stock worth $2,283,051 over the last three months. 17.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On PriceSmart

A number of institutional investors and hedge funds have recently made changes to their positions in PSMT. Geneos Wealth Management Inc. raised its holdings in shares of 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 acquiring an additional 252 shares during the last quarter. UMB Bank n.a. raised its holdings in shares of 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 acquiring an additional 98 shares during the last quarter. First Horizon Corp acquired a new stake in shares of PriceSmart in the 3rd quarter worth about $30,000. CENTRAL TRUST Co acquired a new stake in shares of PriceSmart in the 4th quarter worth about $32,000. Finally, Steward Partners Investment Advisory LLC raised its holdings in shares of 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 acquiring an additional 125 shares during the last quarter. Institutional investors and hedge funds own 80.46% of the company’s stock.

PriceSmart Stock Down 0.2%

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 company has a market cap of $4.82 billion, a price-to-earnings ratio of 31.99 and a beta of 0.74. The stock’s fifty day moving average is $150.37 and its two-hundred day moving average is $133.82.

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.