PriceSmart (NASDAQ:PSMT) Stock Crosses Above 200-Day Moving Average – Should You Sell?

PriceSmart, Inc. (NASDAQ:PSMT)’s share price passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $131.40 and traded as high as $147.81. PriceSmart shares last traded at $146.43, with a volume of 194,552 shares changing hands.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on PSMT. Wall Street Zen lowered PriceSmart from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Weiss Ratings upgraded PriceSmart from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Tuesday, March 10th. One equities research analyst has rated the stock with a Strong Buy rating, According to MarketBeat.com, the stock currently has a consensus rating of “Strong Buy”.

PriceSmart Price Performance

The stock has a market cap of $4.51 billion, a PE ratio of 29.88 and a beta of 0.73. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.33 and a quick ratio of 0.55. The firm’s 50 day moving average price is $148.63 and its two-hundred day moving average price is $131.40.

PriceSmart (NASDAQ:PSMT) last announced its quarterly earnings results on Wednesday, January 7th. The company reported $1.29 EPS for the quarter, beating analysts’ consensus estimates of $1.28 by $0.01. The company had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.36 billion. PriceSmart had a net margin of 2.79% and a return on equity of 12.20%. PriceSmart’s revenue was up 9.9% compared to the same quarter last year. During the same period in the prior year, the company posted $1.21 EPS. On average, research analysts expect that PriceSmart, Inc. will post 5.28 earnings per share for the current year.

PriceSmart Dividend Announcement

The business also recently announced a dividend, which will be paid on Monday, August 31st. Shareholders of record on Monday, August 17th will be given a dividend of $0.70 per share. The ex-dividend date is Monday, August 17th. This represents a dividend yield of 89.0%. PriceSmart’s dividend payout ratio is currently 28.57%.

Insider Buying and Selling

In related news, Director Beatriz V. Infante sold 1,995 shares of the stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $136.87, for a total transaction of $273,055.65. Following the sale, the director owned 10,879 shares of the company’s stock, valued at approximately $1,489,008.73. This represents a 15.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, 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 value of $1,015,786.48. Following the sale, the chief operating officer directly owned 108,194 shares in the company, valued at $14,809,594.72. This trade represents a 6.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 16,671 shares of company stock valued at $2,283,051 over the last three months. Insiders own 17.00% of the company’s stock.

Institutional Investors Weigh In On PriceSmart

Hedge funds and other institutional investors have recently modified their holdings of the stock. Geneos Wealth Management Inc. boosted its position in shares of PriceSmart by 560.0% in the first quarter. Geneos Wealth Management Inc. now owns 297 shares of the company’s stock valued at $26,000 after acquiring an additional 252 shares during the period. UMB Bank n.a. increased its holdings in PriceSmart by 76.0% during 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 period. First Horizon Corp purchased a new stake in PriceSmart in the 3rd quarter worth approximately $30,000. CENTRAL TRUST Co bought a new position in PriceSmart in the 4th quarter valued at $32,000. Finally, Steward Partners Investment Advisory LLC boosted its holdings in PriceSmart by 52.5% in the 2nd quarter. Steward Partners Investment Advisory LLC now owns 363 shares of the company’s stock valued at $38,000 after purchasing an additional 125 shares during the period. 80.46% of the stock is currently owned by institutional investors.

PriceSmart Company Profile

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.