American Century Companies Inc. has enhanced its investment in PriceSmart, Inc. (NASDAQ: PSMT) by 7.7% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the firm acquired an additional 100,785 shares, bringing its total holdings to 1,401,706 shares. This stake is now valued at approximately $147.2 million, representing about 4.56% of PriceSmart.
This move aligns with a broader trend, as several institutional investors have also adjusted their positions in PriceSmart. Notably, Choreo LLC increased its holdings by 6.7% in the first quarter, now owning 2,825 shares valued at $248,000. Meanwhile, Royce & Associates LP raised its stake by 3.1%, resulting in ownership of 21,566 shares worth $1.9 million. Ridgewood Investments LLC entered the scene with a new investment valued at approximately $42,000, while Meeder Asset Management Inc. saw a dramatic increase of 2,237.8%, owning 12,110 shares valued at $1.06 million after acquiring an additional 11,592 shares.
As of now, institutional investors and hedge funds hold approximately 80.46% of PriceSmart’s stock, reflecting significant institutional interest in the company.
Market Performance and Earnings Report
On Tuesday, October 30, 2023, PriceSmart’s stock opened at $117.57. The company has experienced fluctuations over the past year, with a low of $81.25 and a high of $125.48. PriceSmart reports a market capitalization of $3.63 billion, a price-to-earnings (P/E) ratio of 24.80, and a beta of 0.84. Its current ratio stands at 1.28, while its quick ratio is 0.50.
In its recent earnings announcement, PriceSmart reported earnings per share (EPS) of $1.02 for the quarter, falling short of analysts’ expectations of $1.10 by $0.08. Revenue for the quarter was reported at $1.33 billion, meeting consensus estimates. Year-over-year, the company’s revenue increased by 8.6%. Last year, during the same quarter, PriceSmart recorded an EPS of $0.94. Analysts project the company will achieve an EPS of $5.28 for the current fiscal year.
Insider Activity and Analyst Ratings
In other developments, PriceSmart’s Chief Operating Officer, John D. Hildebrandt, sold 10,000 shares on November 4, 2023, at an average price of $115.10, totaling $1.15 million. Following the sale, Hildebrandt retained 115,615 shares, valued at approximately $13.31 million, marking a 7.96% decrease in his position. The transaction 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, amounting to $99,941.44. Following this sale, Hanson holds 7,653 shares valued at $898,768.32, representing a 10.01% reduction in his ownership.
Over the past three months, insiders have sold a total of 22,460 shares valued at approximately $2.55 million. Currently, insiders own about 17.10% of PriceSmart’s stock.
Analysts have expressed varied opinions on PriceSmart’s stock. Weiss Ratings recently reaffirmed a “buy (A-)” rating, while Wall Street Zen upgraded the stock from “hold” to “buy”. Currently, one analyst has rated PriceSmart with a “Strong Buy” consensus, reflecting confidence in the company’s future performance.
PriceSmart, Inc. operates membership-based warehouse clubs in the United States, Central America, the Caribbean, and Colombia, offering a variety of consumer products under its Member’s Selection brand. As the company continues to navigate the market, it remains a significant player in the retail sector.
