PriceSmart Inc. (NASDAQ:PSMT) director Sherry S. Bahrambeygui has sold a total of $120,780 worth of company stock, according to the latest SEC filings. The transaction involved 1,500 shares of common stock at a price of $80.52 each.
The sale, executed on April 26, 2024, reduced Bahrambeygui's direct holdings in the company to 98,508 shares. Additionally, the filing disclosed indirect holdings through the Hosey Family Trust, with 43,728 shares, and a joint account with her son, holding 1,000 shares. Bahrambeygui is co-trustee of the Hosey Family Trust and disclaims beneficial ownership of these securities, except to the extent of her pecuniary interest.
The recent transaction comes as part of regular financial disclosures made by company insiders, providing transparency into the trading activities of senior executives and directors. PriceSmart, with its headquarters in San Diego, California, operates membership warehouse clubs in the United States, Central America, and the Caribbean.
Investors often monitor insider buying and selling as it can provide insights into the leadership's confidence in the company's prospects. However, it is important to note that these transactions could be motivated by a variety of personal financial considerations and may not necessarily reflect the executive's outlook on the company's future performance.
PriceSmart has not publicly commented on the sale. The company's stock continues to be traded on the NASDAQ, where investors and analysts alike can keep track of its performance.
InvestingPro Insights
Amidst the news of insider selling at PriceSmart Inc. (NASDAQ:PSMT), the company's stock performance and financial health remain crucial for investors. According to data from InvestingPro, PriceSmart currently holds a market capitalization of $2.49 billion, with a Price/Earnings (P/E) ratio of 20.78. This valuation metric is slightly adjusted downwards to 19.08 when looking at the last twelve months as of Q2 2024, indicating a potential reassessment of the company's earnings capabilities.
In terms of profitability, PriceSmart has shown resilience, as indicated by a 9.98% revenue growth over the last twelve months as of Q2 2024. This growth is further underlined by a stronger quarterly revenue growth of 13.11% in Q2 2024, suggesting a positive trend in the company's earnings trajectory. Despite concerns about weak gross profit margins, which stand at 17.13%, PriceSmart's cash flows are robust enough to cover interest payments, reflecting financial stability.
Two InvestingPro Tips for PriceSmart highlight the company's financial prudence and shareholder value approach. Firstly, management has been actively engaging in share buybacks, a move that can signal confidence in the company's valuation and future. Secondly, PriceSmart not only holds more cash than debt on its balance sheet but has also raised its dividend for 3 consecutive years, showcasing its commitment to returning value to its shareholders. Notably, the company has maintained dividend payments for 18 consecutive years, underscoring a reliable income stream for investors.
For those seeking more in-depth analysis and additional InvestingPro Tips, PriceSmart's page on InvestingPro offers further insights. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 9 InvestingPro Tips for PriceSmart, including predictions on profitability and analyst fair value estimates.
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