Costco Wholesale (NASDAQ:COST) Trading Up 2.5% - What's Next?

Key Points

• Costco shares rose 2.5% to approximately $971.40, near the stock’s 50-day moving average, while the company carries a market capitalization of about $430.8 billion.
• Analyst sentiment remains favorable, with 22 Buy, 11 Hold, and one Sell rating, producing a “Moderate Buy” consensus and an average price target of $1,059.53.
• Costco slightly missed quarterly EPS estimates at $4.93 but exceeded revenue expectations with $70.53 billion in sales. The company also paid a quarterly dividend of $1.47 per share, equivalent to a 0.6% annual yield.

Shares of Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) shot up 2.5% on Monday . The stock traded as high as $974.49 and last traded at $971.40. 1,977,770 shares were traded during mid-day trading, a decline of 10% from the average daily volume of 2,193,844 shares. The stock had previously closed at $947.74.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on COST. HC Wainwright restated a "buy" rating on shares of Costco Wholesale in a report on Monday, June 1st. Royal Bank Of Canada began coverage on shares of Costco Wholesale in a report on Monday, July 13th. They set a "sector perform" rating and a $1,000.00 price target for the company. Roth Capital increased their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a research report on Friday, May 29th. Sanford C. Bernstein raised their price target on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a report on Friday, May 29th. Finally, TD Cowen restated a "buy" rating and issued a $1,175.00 price objective on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $1,059.53.

Costco Wholesale Trading Up 2.5%

The firm has a market cap of $430.80 billion, a PE ratio of 48.86, a PEG ratio of 4.51 and a beta of 0.87. The firm has a fifty day simple moving average of $947.14 and a two-hundred day simple moving average of $981.04. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). The business had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same quarter in the prior year, the company earned $4.28 EPS. Equities analysts forecast that Costco Wholesale Corporation will post 20.42 EPS for the current year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale's payout ratio is presently 29.58%.

Insider Buying and Selling

In other news, Director Kenneth D. Denman sold 885 shares of the firm's stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 0.10% of the company's stock.

Institutional Trading of Costco Wholesale

Several institutional investors and hedge funds have recently bought and sold shares of COST. World Investment Advisors lifted its position in Costco Wholesale by 8.4% in the fourth quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock valued at $15,835,000 after buying an additional 1,560 shares during the last quarter. Sarasin & Partners LLP boosted its position in shares of Costco Wholesale by 6.9% during the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer's stock worth $200,372,000 after purchasing an additional 13,795 shares during the period. Perryman Financial Advisory Inc. AD purchased a new position in shares of Costco Wholesale during the 4th quarter worth approximately $9,300,000. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust acquired a new stake in Costco Wholesale in the 4th quarter valued at approximately $5,813,000. Finally, Hyperion Asset Management Ltd raised its position in Costco Wholesale by 9.0% in the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer's stock valued at $64,325,000 after purchasing an additional 5,656 shares during the period. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

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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