PriceSmart (NASDAQ:PSMT) Shares Down 6.4% After Earnings Miss

PriceSmart, Inc. (NASDAQ:PSMT)’s stock price was down 6.4% on Friday following a weaker than expected earnings announcement. The company traded as low as $114.58 and last traded at $115.0550. Approximately 76,112 shares traded hands during trading, a decline of 67% from the average daily volume of 229,983 shares. The stock had previously closed at $122.91.

The company reported $1.02 earnings per share for the quarter, missing the consensus estimate of $1.10 by ($0.08). PriceSmart had a return on equity of 12.46% and a net margin of 2.82%.The company had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same period in the prior year, the business earned $0.94 earnings per share. PriceSmart’s quarterly revenue was up 8.6% on a year-over-year basis.

Analysts Set New Price Targets

PSMT has been the subject of several recent analyst reports. Weiss Ratings reissued a “buy (b)” rating on shares of PriceSmart in a research note on Wednesday, October 8th. Wall Street Zen raised PriceSmart from a “hold” rating to a “buy” rating in a research note on Saturday, October 25th. One research analyst has rated the stock with a Buy rating, According to MarketBeat, the company currently has an average rating of “Buy”.

Insider Buying and Selling at PriceSmart

In other news, EVP Michael Mccleary sold 9,754 shares of the stock in a transaction on Tuesday, September 9th. The stock was sold at an average price of $110.62, for a total value of $1,078,987.48. Following the completion of the transaction, the executive vice president owned 47,082 shares of the company’s stock, valued at approximately $5,208,210.84. This represents a 17.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP Francisco Velasco sold 550 shares of the firm’s stock in a transaction dated Monday, October 6th. The shares were sold at an average price of $122.82, for a total value of $67,551.00. Following the transaction, the executive vice president directly owned 80,548 shares of the company’s stock, valued at $9,892,905.36. This represents a 0.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 17.10% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Wealth Enhancement Advisory Services LLC boosted its stake in PriceSmart by 1.9% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 5,004 shares of the company’s stock valued at $607,000 after buying an additional 93 shares in the last quarter. Smartleaf Asset Management LLC boosted its stake in PriceSmart by 10.9% during the second quarter. Smartleaf Asset Management LLC now owns 946 shares of the company’s stock valued at $101,000 after buying an additional 93 shares in the last quarter. KLP Kapitalforvaltning AS boosted its stake in PriceSmart by 1.8% during the second quarter. KLP Kapitalforvaltning AS now owns 5,600 shares of the company’s stock valued at $588,000 after buying an additional 100 shares in the last quarter. GAMMA Investing LLC boosted its stake in PriceSmart by 13.0% during the second quarter. GAMMA Investing LLC now owns 888 shares of the company’s stock valued at $93,000 after buying an additional 102 shares in the last quarter. Finally, Nisa Investment Advisors LLC boosted its stake in PriceSmart by 20.4% during the third quarter. Nisa Investment Advisors LLC now owns 601 shares of the company’s stock valued at $73,000 after buying an additional 102 shares in the last quarter. Institutional investors own 80.46% of the company’s stock.

PriceSmart Price Performance

The company has a quick ratio of 0.50, a current ratio of 1.28 and a debt-to-equity ratio of 0.07. The firm has a market cap of $3.53 billion, a P/E ratio of 24.25 and a beta of 0.83. The company has a 50 day moving average of $117.35 and a two-hundred day moving average of $109.49.

PriceSmart Company Profile

PriceSmart, Inc owns and operates U.S.-style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. The company provides basic and private label consumer products under the Member's Selection brand, including groceries, cleaning supplies, health and beauty aids, meat, produce, deli, seafood, and poultry.