Black Creek trims PriceSmart after a strong run — conviction intactBlack Creek trims PriceSmart after a strong run — conviction intact
Key Points
Reduced PriceSmart stake by 473,785 shares; estimated trade size $69.20 million based on quarterly average price
Quarter-end position value fell by $25.70 million, reflecting both share sales and stock price movement
Transaction represented 3.71% of the fund’s $1.86 billion reportable AUM
Post-sale, Black Creek holds 1,164,834 shares valued at $175.31 million
PriceSmart now accounts for 9.41% of fund AUM, placing it outside the fund's top five holdings
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Black Creek Investment Management Inc. disclosed a sale of 473,785 shares of PriceSmart (NASDAQ:PSMT) in a filing dated May 13, 2026, an estimated $69.20 million transaction based on average quarterly pricing.
What happened
According to an SEC filing dated May 13, 2026, Black Creek Investment Management Inc. sold 473,785 shares of PriceSmart. The estimated transaction value was $69.20 million, calculated using the average unadjusted closing price for the first quarter of 2026. At quarter close, the fund’s remaining PriceSmart stake was 1,164,834 shares, valued at $175.31 million, with the overall position value changing by $25.70 million during the period.
What else to know
- Black Creek’s reduction brings PriceSmart to 9.41% of reportable AUM as of March 31, 2026
- Top holdings after the filing:
- NYSE:ELAN: $251.12 million (13.5% of AUM)
- NYSE:BAH: $207.43 million (11.1% of AUM)
- NYSE:FCN: $194.28 million (10.4% of AUM)
- NYSE:EXP: $147.31 million (7.9% of AUM)
- NASDAQ:PYPL: $143.55 million (7.7% of AUM)
- As of May 18, 2026, PriceSmart shares were priced at $162.90, up 55.8% over the past year, outperforming the S&P 500 by 31.3 percentage points
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-05-18) | $162.90 |
| Market Capitalization | $5.03 billion |
| Revenue (TTM) | $5.53 billion |
| Net Income (TTM) | $152.92 million |
Company Snapshot
- Offers brand name and private label consumer products, fresh produce, prepared foods, and ancillary services such as optical and tire centers through warehouse clubs and e-commerce platforms.
- Operates a membership-based warehouse club model, generating revenue from product sales and annual membership fees, supplemented by online ordering and delivery services.
- Targets individual consumers and small businesses in Central America, the Caribbean (including the U.S. Virgin Islands), and Colombia seeking value-oriented bulk purchasing and essential goods.
56 warehouse clubs across 12 countries and one U.S. territory as of February 28, 2026, with five more under development that would bring the total to 61, leveraging scale and operational efficiency to deliver value to its members. The company’s strategy centers on a hybrid retail and membership model, supported by both physical locations and a growing e-commerce presence. PriceSmart’s competitive edge lies in its ability to offer a broad assortment of essential goods and services at attractive price points in underserved international markets.
What this transaction means for investors
Black Creek trimmed its PriceSmart position during Q1 2026, but this is a reduction after a strong run, not a change of direction. The fund still holds a significant stake, and nothing about the filing suggests the underlying thesis has shifted. PriceSmart operates membership warehouse clubs across Central America, the Caribbean, and Colombia — markets where it faces nothing like the competitive pressure a Costco or Sam's Club would encounter in the U.S. Members pay annual fees for access to bulk goods and services, which creates recurring revenue and keeps customers sticky. That model, planted in underserved international markets with limited direct competition, is the core of the investment case. The business has been executing: comparable sales are growing, membership is expanding, and the company is actively opening new clubs while scoping Chile as its next frontier. A trim after a strong run is consistent with routine portfolio management, not a reassessment of those fundamentals. For anyone evaluating PriceSmart, the more useful question is whether the growth story can justify where the stock is trading after its run. Black Creek's remaining conviction suggests they think there's still room — just less of it than before.
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Seena Hassouna has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booz Allen Hamilton, FTI Consulting, and PayPal. The Motley Fool recommends Eagle Materials and recommends the following options: short June 2026 $50 calls on PayPal. The Motley Fool has a disclosure policy.
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