Costco Wholesale (NASDAQ:COST) Stock Price Up 2.1% - Still a Buy?

Key Points

• Costco's stock price increased by 2.1%, closing at $963.80, with a significant drop in trading volume compared to the average.
• Analysts have varying price targets for Costco, with a consensus rating of "Moderate Buy" and a target price around $1,037.48.
• The company announced a quarterly dividend of $1.30 per share, reflecting a 0.5% dividend yield and a payout ratio of 29.50%.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report)'s stock price rose 2.1% during mid-day trading on Wednesday . The company traded as high as $962.36 and last traded at $963.80. Approximately 650,757 shares changed hands during trading, a decline of 71% from the average daily volume of 2,208,859 shares. The stock had previously closed at $943.63.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. Evercore ISI dropped their price target on Costco Wholesale from $1,075.00 to $1,060.00 and set an "outperform" rating for the company in a research note on Tuesday, June 17th. Stifel Nicolaus set a $1,035.00 target price on Costco Wholesale in a research note on Thursday, May 29th. Loop Capital reduced their target price on Costco Wholesale from $1,115.00 to $1,110.00 and set a "buy" rating on the stock in a research note on Thursday, May 29th. Telsey Advisory Group reiterated an "outperform" rating and issued a $1,100.00 target price on shares of Costco Wholesale in a research note on Monday. Finally, Mizuho assumed coverage on Costco Wholesale in a research note on Friday, April 11th. They set a "neutral" rating and a $975.00 price target on the stock. Ten investment analysts have rated the stock with a hold rating and twenty have given a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,037.48.

Costco Wholesale Stock Performance

The firm has a 50-day moving average of $980.80 and a two-hundred day moving average of $984.49. The company has a quick ratio of 0.52, a current ratio of 1.02 and a debt-to-equity ratio of 0.21. The company has a market capitalization of $429.87 billion, a PE ratio of 54.99, a PEG ratio of 5.94 and a beta of 0.96.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted 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. The business had revenue of $63.21 billion during the quarter, compared to analysts' expectations of $62.93 billion. Costco Wholesale had a return on equity of 30.48% and a net margin of 2.92%. The business's revenue was up 8.0% compared to the same quarter last year. During the same period in the previous year, the business earned $3.78 earnings per share. Research analysts anticipate that Costco Wholesale Corporation will post 18.03 EPS for the current year.

Costco Wholesale Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 15th. Investors of record on Friday, August 1st will be given a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Friday, August 1st. Costco Wholesale's payout ratio is presently 29.50%.

Insider Transactions at Costco Wholesale

In related news, EVP Yoram Rubanenko sold 4,000 shares of the business's stock in a transaction that occurred on Monday, July 14th. The stock was sold at an average price of $974.96, for a total transaction of $3,899,840.00. Following the completion of the sale, the executive vice president directly owned 5,774 shares in the company, valued at approximately $5,629,419.04. The trade was a 40.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Susan L. Decker sold 547 shares of the business's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $980.00, for a total value of $536,060.00. Following the transaction, the director directly owned 11,531 shares in the company, valued at $11,300,380. This trade represents a 4.53% decrease in their position. 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 ninety days. Company insiders own 0.18% of the company's stock.

Hedge Funds Weigh In On Costco Wholesale

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Personal CFO Solutions LLC boosted its stake in Costco Wholesale by 12.4% during the first quarter. Personal CFO Solutions LLC now owns 1,519 shares of the retailer's stock worth $1,436,000 after buying an additional 167 shares during the last quarter. F&V Capital Management LLC acquired a new position in shares of Costco Wholesale in the 1st quarter valued at $236,000. Graybill Wealth Management LTD. acquired a new position in shares of Costco Wholesale in the 1st quarter valued at $3,095,000. Curat Global LLC acquired a new position in shares of Costco Wholesale in the 1st quarter valued at $241,000. Finally, Gateway Wealth Partners LLC lifted its stake in shares of Costco Wholesale by 2.0% in the 1st quarter. Gateway Wealth Partners LLC now owns 1,380 shares of the retailer's stock valued at $1,305,000 after purchasing an additional 27 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Company Profile

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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