Costco Wholesale (NASDAQ:COST) Trading Up 1.5% - Here's What Happened

Key Points

• Costco shares rose 1.5% on Wednesday, trading as high as $985.26 amid lighter-than-normal volume before closing at $983.37.
• Recent business updates were broadly positive: Jim Cramer said he would buy Costco at current levels, digital sales reportedly jumped 21%, gas volumes hit a record, and May net sales increased 14.5% year over year.
• Wall Street remains constructive on the stock, with multiple firms raising price targets and the consensus rating sitting at Moderate Buy with a target price of $1,060.41.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report)'s share price was up 1.5% on Wednesday . The company traded as high as $985.26 and last traded at $983.37. Approximately 1,688,092 shares traded hands during trading, a decline of 22% from the average daily volume of 2,174,093 shares. The stock had previously closed at $968.59.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Jim Cramer said he would buy Costco stock at current levels, adding a high-profile bullish catalyst that may encourage dip-buying. Jim Cramer on Costco: “I Think That You Buy Some Here”
• Positive Sentiment: Costco’s digital sales reportedly jumped 21% and gas volumes hit a record, reinforcing the company’s strong traffic and omnichannel demand. Costco's Digital Sales Jumped 21% and Gas Volumes Hit a Record. So Why Did COST Stock Drop 5%?
• Positive Sentiment: Costco’s May net sales rose 14.5% year over year, supporting the view that the business is still growing at a healthy pace. Is Costco (COST) One of Billionaire Ken Fisher’s Top 11 Dividend Stock Picks?

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on COST shares. UBS Group raised their price target on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a report on Wednesday, May 20th. TD Cowen reiterated a "buy" rating and issued a $1,175.00 target price on shares of Costco Wholesale in a report on Wednesday, June 3rd. Wells Fargo & Company lifted their target price on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Thursday, April 9th. Oppenheimer lifted their target price on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a report on Tuesday, May 19th. Finally, Telsey Advisory Group lifted their price objective on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an "outperform" rating in a research note on Thursday, April 9th. Twenty-two analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Costco Wholesale presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,060.41.

Costco Wholesale Stock Up 1.5%

The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The business has a 50 day moving average price of $1,006.30 and a 200 day moving average price of $965.46. The firm has a market capitalization of $436.10 billion, a P/E ratio of 49.47, a price-to-earnings-growth ratio of 4.72 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The business had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. During the same quarter in the previous year, the firm posted $4.28 earnings per share. On average, analysts predict that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were issued a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Friday, May 1st. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's payout ratio is presently 29.58%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Palisade Asset Management LLC increased its holdings in shares of Costco Wholesale by 1.4% during the 4th quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock worth $605,000 after purchasing an additional 10 shares during the period. Graybill Wealth Management LTD. increased its stake in Costco Wholesale by 0.3% in the fourth quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock valued at $2,754,000 after acquiring an additional 10 shares during the period. Wealth Effects LLC increased its stake in Costco Wholesale by 1.2% in the first quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock valued at $871,000 after acquiring an additional 10 shares during the period. Folger Nolan Fleming Douglas Capital Management Inc. increased its stake in Costco Wholesale by 1.8% in the first quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock valued at $549,000 after acquiring an additional 10 shares during the period. Finally, First National Bank of Hutchinson increased its stake in Costco Wholesale by 0.9% in the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock valued at $1,094,000 after acquiring an additional 10 shares during the period. Institutional investors own 68.48% of the company's stock.

Costco Wholesale Company Profile

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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