American Century Companies Inc. has increased its holdings in PriceSmart, Inc. (NASDAQ: PSMT) by 7.7% during the second quarter of 2023. This decision was disclosed in a recent filing with the Securities and Exchange Commission (SEC). American Century now owns 1,401,706 shares of PriceSmart, reflecting an additional purchase of 100,785 shares during the reporting period. With this investment, American Century holds approximately 4.56% of the company, valued at about $147.2 million.
Several other institutional investors have also adjusted their stakes in PriceSmart. Choreo LLC increased its holdings by 6.7% in the first quarter, now possessing 2,825 shares valued at $248,000 after acquiring an extra 178 shares. Similarly, Royce & Associates LP raised its stake by 3.1%, owning 21,566 shares worth $1.895 million following a purchase of 644 shares.
Ridgewood Investments LLC entered the scene by purchasing a new stake valued at approximately $42,000, while Meeder Asset Management Inc. dramatically boosted its position by 2,237.8% in the first quarter, now owning 12,110 shares worth $1.064 million. Federated Hermes Inc. also increased its stake by 12.8%, owning 33,641 shares valued at $2.955 million after acquiring an additional 3,812 shares. Overall, institutional investors and hedge funds now control 80.46% of PriceSmart’s stock.
PriceSmart’s Stock Performance and Financial Results
As of Tuesday, PriceSmart’s shares opened at $117.57, having experienced a slight decline of 0.9%. The company recorded a 12-month low of $81.25 and a high of $125.48. PriceSmart’s financial metrics indicate a debt-to-equity ratio of 0.07, a current ratio of 1.28, and a quick ratio of 0.50. The company’s market capitalization stands at $3.63 billion, with a price-to-earnings ratio of 24.80 and a beta of 0.84. Additionally, its fifty-day moving average price is $119.37, while the two-hundred-day moving average price is $111.67.
On October 30, 2023, PriceSmart reported its most recent earnings, revealing an earnings per share (EPS) of $1.02 for the quarter, which fell short of the consensus estimate of $1.10 by $0.08. Revenue for the quarter reached $1.33 billion, aligning with analyst expectations. Year-over-year, PriceSmart’s revenue increased by 8.6%, up from an EPS of $0.94 in the same quarter last year. Analysts project that PriceSmart will report $5.28 EPS for the current fiscal year.
Insider Trading Activities
In related news, 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 $1.151 million. Following this transaction, Hildebrandt owns 115,615 shares, valued at approximately $13.3 million, representing a decrease of 7.96% in his position. This transaction was reported in a legal filing with the SEC.
Additionally, Director Gordon H. Hanson sold 851 shares on November 7, 2023, at an average price of $117.44, amounting to $99,941.44. After this sale, Hanson retains 7,653 shares, valued at around $898,768.32, marking a 10.01% decrease in his ownership.
During the past ninety days, insiders have sold a total of 22,460 shares of PriceSmart stock, valued at approximately $2.547 million. Currently, company insiders own 17.10% of PriceSmart’s stock.
Recent insights from equities analysts suggest a positive outlook for PriceSmart. Weiss Ratings reaffirmed a “buy (A-)” rating for the stock, while Wall Street Zen upgraded it from a “hold” to a “buy” rating. Currently, one analyst has assigned a “Strong Buy” rating to PriceSmart, reflecting a consensus rating of “Strong Buy” based on data from MarketBeat.com.
PriceSmart, Inc. operates membership-based warehouse clubs in the United States, Central America, the Caribbean, and Colombia, offering a range of consumer products under its Member’s Selection brand, including groceries, cleaning supplies, and health and beauty items.
