We wouldn't blame PriceSmart, Inc. (NASDAQ:PSMT) shareholders if they were a little worried about the fact that Robert Price, the Founder & Independent Chairman recently netted about US$585k selling shares at an average price of US$58.49. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.6%.
Before we look at these insider transactions though, you might like to know that our analysis indicates that PSMT is potentially overvalued!
PriceSmart Insider Transactions Over The Last Year
Notably, that recent sale by Founder & Independent Chairman Robert Price was not the only time they sold PriceSmart shares this year. Earlier in the year, they fetched US$80.27 per share in a -US$795k sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$58.66). So it may not shed much light on insider confidence at current levels.
PriceSmart insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like PriceSmart better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of PriceSmart
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. PriceSmart insiders own 7.4% of the company, currently worth about US$132m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About PriceSmart Insiders?
Insiders sold PriceSmart shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since PriceSmart is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PriceSmart. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of PriceSmart.
Of course PriceSmart may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
PriceSmart, Inc. owns and operates U.S. style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia.
The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.
|Analysis Area||Score (0-6)|
Read more about these checks in the individual report sections or in our analysis model.
Flawless balance sheet with acceptable track record.