SAN DIEGO, CA – Pricesmart Inc.'s (NASDAQ:PSMT) Executive Vice President, General Counsel, and Secretary, Francisco Velasco, has recently sold a significant amount of company stock, according to the latest SEC filings. Investors tracking insider transactions will note that Velasco sold 1,298 shares at a price of $87.00 per share, resulting in a total transaction value of $112,926.
The transaction took place on July 16, 2024, and post-sale, Velasco retains 81,751 shares of Pricesmart common stock. This sale is part of the routine disclosures that company executives make regarding their stock transactions.
In addition to the sale, the SEC filing also revealed that restricted stock units were withheld to satisfy tax obligations upon vesting. Specifically, 45 shares valued at $76.44 each and 28 shares at $71.42 each were withheld, totaling $5,439 combined for these transactions. These shares were indirectly owned by Velasco's spouse.
Further details from the filing indicate an award of restricted stock to Velasco's spouse. On February 24, 2024, 149 shares of restricted stock subject to vesting were awarded, although this transaction did not have an associated monetary value at the time of the award.
Pricesmart Inc., headquartered in San Diego, California, operates membership warehouse clubs in the United States, Central America, and the Caribbean. The company's stock transactions by executives are closely watched by investors seeking insights into insider confidence and company performance.
For those following Pricesmart's financial movements, these recent filings provide a window into the actions of one of its top executives. As always, investors are advised to consider the broader context of the market and the company's performance when evaluating the significance of insider transactions.
In other recent news, PriceSmart Inc. reported an 11.6% year-over-year increase in net merchandise sales for the third quarter of fiscal year 2024, totalling $1.2 billion. The company's net income stood at $32.5 million, equivalent to $1.08 per diluted share. Membership growth and high renewal rates, coupled with substantial growth in digital channel sales, contributed to this performance. Furthermore, PriceSmart confirmed plans for expansion, including the opening of a new warehouse club in Costa Rica in spring 2025.
The company's recent developments also include a strategic shift towards non-food inventory and an increase in membership accounts to nearly 1.9 million. In addition, the company's adjusted EBITDA for the first nine months reached $232.9 million, up from $218.4 million year-over-year.
PriceSmart's future plans include the opening of two pharmacies in Guatemala, additional audiology centers in Panama, Jamaica, and Trinidad, and the implementation of the RELEX inventory management system by the end of fiscal year 2025. The company also plans to open four additional recycling centers in the Dominican Republic in fiscal year 2025.
InvestingPro Insights
Amidst the recent insider activity at Pricesmart Inc. (NASDAQ:PSMT), investors looking for a deeper understanding of the company's financial health might find the latest metrics from InvestingPro particularly enlightening. With a market capitalization of approximately $2.75 billion USD and a P/E ratio standing at 21.49, Pricesmart shows a valuation that investors should consider in the context of its earnings. The company's revenue growth has been notable, with an increase of 11.38% over the last twelve months as of Q3 2024, suggesting a solid upward trajectory in sales.
InvestingPro Tips highlight that Pricesmart has been consistently rewarding its shareholders, raising its dividend for three consecutive years and maintaining dividend payments for 18 consecutive years. This commitment to returning value to shareholders is a positive sign for those looking for stable income streams from their investments. Furthermore, the company's recent price performance has been strong, with significant returns over the last week, month, and three months, reflecting a robust short-term uptrend.
For those considering adding Pricesmart to their portfolio, or for current investors seeking to reassess their holdings, there are additional InvestingPro Tips available that can provide further insights. With a total of 15 tips, including observations on share buybacks, gross profit margins, and debt levels, investors can gain a comprehensive view of the company's financial landscape. To explore these tips in detail, visit https://www.investing.com/pro/PSMT and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
As Pricesmart continues to navigate the competitive retail landscape, these financial metrics and expert tips serve as valuable tools for investors aiming to make informed decisions.
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