Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed on May 2, Sherry Bahrambeygui, Board Member at Pricesmart (NASDAQ:PSMT), executed a substantial insider sell as per the latest SEC filing.
What Happened: Bahrambeygui's recent move involves selling 1,569 shares of Pricesmart. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $130,270.
In the Friday's morning session, Pricesmart's shares are currently trading at $82.02, experiencing a down of 0.0%.
Discovering Pricesmart: A Closer Look Pricesmart Inc is principally engaged in operating U.S.-style membership shopping warehouse clubs that offer consumer goods at low prices. The company is headquartered in San Diego, California, United States, and operates stores in Latin America and the Caribbean, with Central America contributing over half of its net warehouse club sales. The company's revenue consists of net warehouse club sales from merchandise sales, membership income from annual membership fees, export sales, and other income, with net warehouse club sales accounting for the majority of the company's total revenue.
Pricesmart's Economic Impact: An Analysis Revenue Growth: Pricesmart's revenue growth over a period of 3 months has been noteworthy. As of 29 February, 2024, the company achieved a revenue growth rate of approximately 13.11%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.
Key Profitability Indicators:
- Gross Margin: With a low gross margin of 17.11%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
- Earnings per Share (EPS): With an EPS below industry norms, Pricesmart exhibits below-average bottom-line performance with a current EPS of 1.31.
Financial Valuation Breakdown:
- Price to Earnings (P/E) Ratio: Pricesmart's P/E ratio of 20.67 is below the industry average, suggesting the stock may be undervalued.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.54, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Pricesmart's EV/EBITDA ratio at 9.18 suggests potential undervaluation, falling below industry averages.
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Why Insider Transactions Are Important While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Unlocking the Meaning of Transaction Codes Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Pricesmart's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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