PriceSmart (PSMT) | News Based Sentiment Analysis

• On September 8, 2025, PriceSmart received an upgrade to a "buy" rating from Wall Street Zen, a positive shift from their previous "hold" rating, signaling renewed analyst confidence. This followed a downgrade to "hold" on September 6, 2025, after the recent earnings announcement, demonstrating fluctuating perspectives from Wall Street.
• PriceSmart reported Q3 Fiscal 2025 earnings on July 10, 2025 (results reported September 10, 2025), with EPS of $1.14 slightly missing the $1.16 estimate, but revenue reaching $1.32 billion, exceeding the $1.31 billion expectation and representing a 7.1% year-over-year increase. This revenue beat suggests continued demand despite the slight earnings miss.
• Institutional investors continued to show confidence, with Comerica Bank increasing its holdings by 59.0% to 18,370 shares (valued at approximately $1.6 million) during the first quarter (reported in September), and Dark Forest Capital Management LP boosting its stake by 665% to 38,711 shares (valued at around $3.4 million). Overall, institutional investors now own over 80% of PriceSmart's stock.
• Leadership changes continued with David Price assuming the role of CEO on September 1, 2025, following Robert Price’s transition to Executive Chairman on August 31, 2025, and Gualberto Hernandez becoming the new CFO on the same date. David Price’s base salary was increased to $2,000,000 per year, retroactive to September 1, 2025, following this transition.
• On September 4, 2025, CEO David R. Price was granted 73,551 restricted shares of common stock, bringing his total holdings to 122,067 shares, vesting annually from October 26, 2026, through October 26, 2030. This grant demonstrates confidence in the new CEO's long-term leadership.
• Insider selling occurred with EVP Michael Mccleary selling 9,754 shares on September 9, 2025, at a price between $109.960 and $111.020, leaving him with 47,082 shares. This sale was part of a trend of 22 insider sells and no insider buys over the past year.
• Short interest in PriceSmart increased significantly during August 2025, reaching 1,760,000 shares on August 15th, a 31.3% increase from 1,340,000 shares on July 31st, representing 6.9% of the stock sold short. This increase in short interest could indicate growing bearish sentiment.

The Investment Story: September was a month of transition for PriceSmart, marked by leadership changes, fluctuating analyst ratings, and continued institutional investment alongside increased short interest. The company is actively expanding its international footprint while navigating a dynamic market environment.

What It Means for Investors: The increased institutional interest and expansion plans are encouraging, but investors should carefully consider the diverging analyst opinions, the increase in short interest, and monitor the impact of the new leadership team.

Looking Ahead: Investors should focus on the Q4 fiscal year 2025 earnings release on October 30, 2025, and the subsequent conference call on October 31, 2025, as well as the continued progress of the expansion into Guatemala and the planned opening in the Dominican Republic in Spring 2026.

The Bottom Line: PriceSmart presents a potentially attractive investment opportunity driven by its expansion strategy and strong institutional support, but the mixed analyst sentiment, increased short interest, and recent leadership changes warrant cautious optimism and close monitoring of upcoming financial results.