Have PriceSmart, Inc. (NASDAQ:PSMT) Insiders Been Selling Their Stock?

We note that the PriceSmart, Inc. (NASDAQ:PSMT) Executive Vice President of Local/Regional Merchandising, Jesus Von Chong, recently sold US$51k worth of stock for US$62.41 per share. However we note that the sale only shrunk their holding by 4.6%.

View our latest analysis for PriceSmart

The Last 12 Months Of Insider Transactions At PriceSmart

Over the last year, we can see that the biggest insider sale was by the CEO & Director, Sherry Bahrambeygui, for US$2.8m worth of shares, at about US$57.16 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$62.37. 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. We note that the biggest single sale was only 20.3% of Sherry Bahrambeygui’s holding.

In the last twelve months insiders netted US$5.9m for 97187 shares sold. PriceSmart insiders didn’t buy any shares over the last year. You can see the insider transactions (by 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!

NasdaqGS:PSMT Recent Insider Trading, July 25th 2019
NasdaqGS:PSMT Recent Insider Trading, July 25th 2019

Insider Ownership of PriceSmart

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. We usually like to see fairly high levels of insider ownership. PriceSmart insiders own 12% of the company, currently worth about US$223m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The PriceSmart Insider Transactions Indicate?

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. 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. Of course, the future is what matters most. So if you are interested in PriceSmart, you should check out this free report on analyst forecasts for the company.

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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.