American Century Companies Inc. has raised its ownership in PriceSmart, Inc. by 7.7% during the second quarter of 2023, according to a recent filing with the Securities and Exchange Commission (SEC). The investment firm now holds 1,401,706 shares of PriceSmart’s stock, having acquired an additional 100,785 shares during this period. This increase brings American Century’s stake to approximately 4.56% of PriceSmart, valued at around $147.2 million.
Several other institutional investors have also adjusted their positions in PriceSmart (NASDAQ: PSMT). Choreo LLC increased its holdings by 6.7% in the first quarter, now owning 2,825 shares valued at $248,000. Royce & Associates LP raised its stake by 3.1%, owning 21,566 shares worth $1.9 million. Ridgewood Investments LLC entered a new position valued at about $42,000, while Meeder Asset Management Inc. significantly boosted its position by 2,237.8%, now holding 12,110 shares worth $1.06 million. Federated Hermes Inc. also expanded its stake by 12.8%, now owning 33,641 shares valued at $2.96 million. Overall, institutional investors and hedge funds collectively own approximately 80.46% of PriceSmart’s stock.
Stock Performance and Financials
As of Tuesday, PriceSmart’s stock opened at $117.57, reflecting a slight decline of 0.9%. The company has experienced a 12-month low of $81.25 and a high of $125.48. PriceSmart’s financial ratios indicate a debt-to-equity ratio of 0.07, a current ratio of 1.28, and a quick ratio of 0.50. The company boasts a market capitalization of $3.63 billion, a price-to-earnings (P/E) ratio of 24.80, and a beta of 0.84. Its fifty-day moving average price stands at $119.37, while the 200-day moving average is $111.67.
On October 30, 2023, PriceSmart reported its earnings, revealing earnings per share (EPS) of $1.02 for the quarter, which fell short of the consensus estimate of $1.10 by $0.08. The company generated revenue of $1.33 billion, matching analysts’ expectations. Year-over-year, PriceSmart’s revenue increased by 8.6%, compared to $0.94 EPS for the same period last year. Analysts anticipate that PriceSmart will post a total EPS of $5.28 for the current fiscal year.
Insider Transactions and Analyst Ratings
In recent insider activity, Chief Operating Officer John D. Hildebrandt sold 10,000 shares of PriceSmart stock on November 4, 2023, at an average price of $115.10, totaling $1.15 million. Following this transaction, Hildebrandt retains 115,615 shares valued at approximately $13.31 million, representing a 7.96% reduction in his position. The sale was disclosed in a filing with the SEC.
Additionally, Director Gordon H. Hanson sold 851 shares on November 7, 2023, at an average price of $117.44, equating to $99,941.44. Hanson now holds 7,653 shares worth approximately $898,768.32, marking a 10.01% decrease in ownership. In total, insiders have sold 22,460 shares valued at around $2.55 million over the past ninety days, with company insiders owning 17.10% of the stock.
Equities analysts have shared varied insights on PriceSmart. On November 17, 2023, Weiss Ratings reaffirmed a “buy (A-)” rating for the company. Wall Street Zen upgraded PriceSmart from a “hold” to a “buy” rating on October 25, 2023. Currently, one analyst has assigned a “Strong Buy” rating to the stock, with a consensus of “Strong Buy” based on data from MarketBeat.com.
PriceSmart, Inc. operates membership warehouse clubs in the United States, Central America, the Caribbean, and Colombia, providing a wide range of products under its Member’s Selection brand, including groceries, cleaning supplies, and health and beauty aids.
