Have Insiders Sold PriceSmart Shares Recently?

Anyone interested in PriceSmart, Inc. (NASDAQ:PSMT) should probably be aware that the Independent Director, Jeffrey Fisher, recently divested US$307k worth of shares in the company, at an average price of US$102 each. That sale was 19% of their holding, so it does make us raise an eyebrow.

We've discovered 1 warning sign about PriceSmart. View them for free.

PriceSmart Insider Transactions Over The Last Year

The Director, Sherry Bahrambeygui, made the biggest insider sale in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$89.81 each. That means that an insider was selling shares at slightly below the current price (US$105). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 22% of Sherry Bahrambeygui's holding.

Insiders in PriceSmart didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for PriceSmart

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. PriceSmart insiders own 7.7% of the company, currently worth about US$238m 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 Do The PriceSmart Insider Transactions Indicate?

Insiders sold PriceSmart shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since PriceSmart is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of PriceSmart.

But note: PriceSmart may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.