Costco Wholesale (NASDAQ:COST) Hits New 1-Year High - Here's Why

Key Points

• Costco shares hit a new 52-week high after trading as high as $1,096.50, extending a strong run in the stock.
• The company boosted its quarterly dividend by 13% to $1.47 per share, marking 22 straight years of dividend increases and reinforcing confidence in cash generation.
• Analysts grew more bullish ahead of earnings after strong April sales, with several raising price targets and Costco’s April comparable sales rising 11.6% alongside 18.8% digital sales growth.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) shares hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $1,096.50 and last traded at $1,094.32, with a volume of 2851390 shares traded. The stock had previously closed at $1,076.47.

More Costco Wholesale News

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Costco raised its quarterly dividend by 13% to $1.47 per share, marking 22 straight years of dividend increases and signaling confidence in cash generation. This helped push shares to new highs. Where Will Costco Stock Be In 2028?
• Positive Sentiment: Analysts turned more constructive ahead of the company’s May 28 earnings report, with Oppenheimer lifting its price target to $1,160 after strong April sales and the dividend hike. Costco (COST) Stock Gains as Analysts Raise Price Targets Before Quarterly Report
• Positive Sentiment: Costco’s April sales reinforced its defensive appeal, with 11.6% comparable sales growth and 18.8% digital sales growth as value-focused shoppers kept buying in bulk. Costco's April Sales Reinforce Its Case as the Ultimate Defensive Stock
• Positive Sentiment: New food-court items, including chicken strips, are generating customer buzz and social media attention that may support traffic and membership loyalty. Forget chicken fingers, Costco quietly adds new food court item
• Neutral Sentiment: Several articles discuss whether Costco should split its stock now that shares are above $1,000, but management has not announced any split. Costco's Stock Keeps Breaking the $1,000 Threshold -- Don't Expect a Stock Split

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the company. TD Cowen reiterated a "buy" rating on shares of Costco Wholesale in a report on Friday, March 6th. Wells Fargo & Company increased their target price on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Thursday, April 9th. UBS Group set a $1,175.00 target price on Costco Wholesale in a report on Friday, March 6th. BMO Capital Markets increased their target price on Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an "outperform" rating in a report on Friday, March 6th. Finally, Daiwa Securities Group increased their price target on Costco Wholesale from $917.00 to $975.00 and gave the company a "neutral" rating in a research report on Tuesday, March 10th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Costco Wholesale has an average rating of "Moderate Buy" and a consensus price target of $1,049.27.

Costco Wholesale Price Performance

The firm has a market capitalization of $485.50 billion, a PE ratio of 56.91, a price-to-earnings-growth ratio of 5.30 and a beta of 0.92. The business has a 50-day moving average of $1,004.71 and a 200 day moving average of $957.59. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. The business had revenue of $69.60 billion during the quarter, compared to analyst estimates of $68.96 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.Costco Wholesale's quarterly revenue was up 9.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.02 EPS. As a group, research analysts anticipate that Costco Wholesale Corporation will post 20.31 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were given a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 annualized dividend and a dividend yield of 0.5%. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's payout ratio is 30.58%.

Insider Activity

In other news, EVP Claudine Adamo sold 730 shares of the firm's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the sale, the executive vice president directly owned 6,121 shares of the company's stock, valued at $6,139,485.42. This trade represents a 10.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Costco Wholesale

Large investors have recently made changes to their positions in the business. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in shares of Costco Wholesale during the 4th quarter valued at $27,000. Lifetime Wealth Management P.C. purchased a new stake in shares of Costco Wholesale during the 4th quarter valued at $28,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Costco Wholesale during the 4th quarter valued at $28,000. Hurley Capital LLC increased its position in shares of Costco Wholesale by 120.0% during the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock valued at $31,000 after purchasing an additional 18 shares during the last quarter. Finally, Entrust Financial LLC bought a new position in shares of Costco Wholesale during the 4th quarter worth $31,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

About Costco Wholesale

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company's product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco's business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

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