Costco Wholesale (NASDAQ:COST) Shares Up 1.4% - Time to Buy?

Key Points

• Costco shares increased by 1.4% to $951.52, although trading volume was down 61% compared to its average.
• Analysts have assigned a Moderate Buy consensus rating on Costco, with target prices ranging from $975.00 to $1,225.00.
• Costco recently announced a quarterly dividend of $1.30 per share, with an annualized yield of 0.5%.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) shares rose 1.4% during trading on Friday . The company traded as high as $950.72 and last traded at $951.52. Approximately 867,919 shares traded hands during mid-day trading, a decline of 61% from the average daily volume of 2,202,730 shares. The stock had previously closed at $938.34.

Analyst Upgrades and Downgrades

Several analysts recently commented on COST shares. Stifel Nicolaus set a $1,035.00 target price on shares of Costco Wholesale in a report on Thursday, May 29th. Loop Capital reduced their target price on shares of Costco Wholesale from $1,115.00 to $1,110.00 and set a "buy" rating for the company in a report on Thursday, May 29th. Telsey Advisory Group reaffirmed an "outperform" rating and set a $1,100.00 target price on shares of Costco Wholesale in a report on Thursday, July 10th. Mizuho initiated coverage on shares of Costco Wholesale in a report on Friday, April 11th. They issued a "neutral" rating and a $975.00 price objective for the company. Finally, Morgan Stanley boosted their price objective on shares of Costco Wholesale from $1,150.00 to $1,225.00 and gave the company an "overweight" rating in a report on Friday, May 30th. Nine research analysts have rated the stock with a hold rating and twenty have issued a buy rating to the stock. According to data from MarketBeat, Costco Wholesale currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,037.48.

Costco Wholesale Price Performance

The firm's 50 day moving average price is $984.46 and its two-hundred day moving average price is $983.58. The stock has a market cap of $421.75 billion, a PE ratio of 54.02, a P/E/G ratio of 5.77 and a beta of 0.97. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.02 and a quick ratio of 0.52.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings data on Thursday, May 29th. The retailer reported $4.28 EPS for the quarter, beating analysts' consensus estimates of $4.24 by $0.04. Costco Wholesale had a net margin of 2.92% and a return on equity of 30.48%. The company had revenue of $63.21 billion during the quarter, compared to analyst estimates of $62.93 billion. During the same period last year, the business earned $3.78 earnings per share. Costco Wholesale's revenue was up 8.0% compared to the same quarter last year. On average, research analysts expect that Costco Wholesale Corporation will post 18.03 earnings per share for the current year.

Costco Wholesale Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Friday, August 1st will be given a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Friday, August 1st. Costco Wholesale's dividend payout ratio (DPR) is currently 29.50%.

Insider Activity at Costco Wholesale

In related news, EVP Yoram Rubanenko sold 4,000 shares of Costco Wholesale stock in a transaction dated Monday, July 14th. The shares were sold at an average price of $974.96, for a total transaction of $3,899,840.00. Following the completion of the transaction, the executive vice president directly owned 5,774 shares of the company's stock, valued at $5,629,419.04. This trade represents a 40.92% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Patrick J. Callans sold 3,000 shares of Costco Wholesale stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $1,002.77, for a total transaction of $3,008,310.00. Following the transaction, the executive vice president directly owned 58,543 shares of the company's stock, valued at approximately $58,705,164.11. This trade represents a 4.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 9,547 shares of company stock valued at $9,472,510 over the last quarter. Company insiders own 0.18% of the company's stock.

Institutional Trading of Costco Wholesale

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Peninsula Wealth LLC boosted its stake in shares of Costco Wholesale by 1.2% during the 4th quarter. Peninsula Wealth LLC now owns 818 shares of the retailer's stock valued at $749,000 after buying an additional 10 shares during the last quarter. Bosun Asset Management LLC increased its holdings in shares of Costco Wholesale by 1.6% during the fourth quarter. Bosun Asset Management LLC now owns 636 shares of the retailer's stock valued at $583,000 after purchasing an additional 10 shares during the period. Corps Capital Advisors LLC increased its holdings in shares of Costco Wholesale by 0.7% during the first quarter. Corps Capital Advisors LLC now owns 1,547 shares of the retailer's stock valued at $1,463,000 after purchasing an additional 10 shares during the period. Covestor Ltd raised its position in Costco Wholesale by 8.6% in the first quarter. Covestor Ltd now owns 126 shares of the retailer's stock worth $119,000 after acquiring an additional 10 shares in the last quarter. Finally, NFP Retirement Inc. increased its stake in Costco Wholesale by 1.1% in the 4th quarter. NFP Retirement Inc. now owns 980 shares of the retailer's stock worth $898,000 after purchasing an additional 11 shares in the last quarter. 68.48% of the stock is currently owned by institutional investors.

About Costco Wholesale

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.

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