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Costco Wholesale (NASDAQ:COST) Stock Price Up 3.1% After Strong Earnings

Costco Wholesale logo with Retail/Wholesale background

Costco Wholesale Co. (NASDAQ:COST - Get Free Report) rose 3.1% on Friday after the company announced better than expected quarterly earnings. The company traded as high as $1,047.00 and last traded at $1,040.00. Approximately 1,541,309 shares changed hands during trading, a decline of 25% from the average daily volume of 2,047,047 shares. The stock had previously closed at $1,008.74.

The retailer reported $4.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.04. Costco Wholesale had a net margin of 2.93% and a return on equity of 32.31%. The firm had revenue of $63.21 billion for the quarter, compared to the consensus estimate of $62.93 billion. During the same quarter in the previous year, the firm posted $3.78 EPS. The firm's quarterly revenue was up 8.0% on a year-over-year basis.

Costco Wholesale Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 16th. Stockholders of record on Friday, May 2nd were issued a $1.30 dividend. The ex-dividend date was Friday, May 2nd. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.16. This represents a $5.20 annualized dividend and a dividend yield of 0.50%. Costco Wholesale's payout ratio is 30.36%.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Telsey Advisory Group reissued an "outperform" rating and set a $1,100.00 target price on shares of Costco Wholesale in a research note on Thursday. Cfra Research raised shares of Costco Wholesale from a "hold" rating to a "moderate buy" rating in a research note on Friday, April 4th. Cowen reissued a "buy" rating on shares of Costco Wholesale in a research note on Friday, March 7th. Robert W. Baird boosted their target price on shares of Costco Wholesale from $1,075.00 to $1,125.00 and gave the company an "outperform" rating in a research note on Friday, March 7th. Finally, DA Davidson boosted their target price on shares of Costco Wholesale from $900.00 to $1,000.00 and gave the company a "neutral" rating in a research note on Thursday, February 6th. Ten investment analysts have rated the stock with a hold rating and twenty have given a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $1,035.32.

View Our Latest Stock Analysis on COST

Insider Buying and Selling

In other Costco Wholesale news, CEO Roland Michael Vachris sold 3,600 shares of the firm's stock in a transaction dated Tuesday, March 11th. The shares were sold at an average price of $931.00, for a total value of $3,351,600.00. Following the completion of the sale, the chief executive officer now owns 41,077 shares in the company, valued at approximately $38,242,687. This trade represents a 8.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP James C. Klauer sold 4,000 shares of the firm's stock in a transaction dated Thursday, April 17th. The shares were sold at an average price of $981.07, for a total transaction of $3,924,280.00. Following the completion of the sale, the executive vice president now owns 43,994 shares of the company's stock, valued at $43,161,193.58. The trade was a 8.33% decrease in their position. The disclosure for this sale can be found here. Insiders sold 9,600 shares of company stock worth $9,140,195 in the last quarter. 0.18% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of COST. Capital & Planning LLC raised its holdings in Costco Wholesale by 28.7% during the 4th quarter. Capital & Planning LLC now owns 3,756 shares of the retailer's stock worth $3,441,000 after buying an additional 837 shares during the period. Redmond Asset Management LLC acquired a new stake in Costco Wholesale during the 4th quarter worth approximately $1,214,000. May Barnhard Investments LLC acquired a new stake in Costco Wholesale during the 4th quarter worth approximately $485,000. Ironwood Wealth Management LLC. raised its holdings in Costco Wholesale by 0.6% during the 4th quarter. Ironwood Wealth Management LLC. now owns 3,852 shares of the retailer's stock worth $3,529,000 after buying an additional 22 shares during the period. Finally, Brighton Jones LLC raised its holdings in Costco Wholesale by 12.3% during the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock worth $18,165,000 after buying an additional 2,172 shares during the period. Institutional investors own 68.48% of the company's stock.

Costco Wholesale Stock Up 4.0%

The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.43 and a current ratio of 0.98. The stock has a market capitalization of $465.33 billion, a price-to-earnings ratio of 61.58, a P/E/G ratio of 6.15 and a beta of 1.00. The firm's fifty day simple moving average is $983.85 and its 200 day simple moving average is $975.34.

Costco Wholesale Company Profile

(Get Free Report)

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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