Costco Wholesale (NASDAQ:COST) Trading Up 3.1% - Should You Buy?

Key Points

• Costco Wholesale shares rose 3.1%, trading at $942.89, with a significant increase in trading volume at approximately 3.7 million shares for the day.
• Analysts have mixed opinions on the stock, with price targets ranging from $947 to $1,100 and an overall average rating of "Moderate Buy".
• Costco reported a quarterly earnings per share of $5.87, exceeding estimates, alongside an 8.1% year-over-year revenue increase to $86.16 billion.

Shares of Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) were up 3.1% on Thursday . The stock traded as high as $943.77 and last traded at $942.89. Approximately 3,736,006 shares changed hands during mid-day trading, an increase of 66% from the average daily volume of 2,252,961 shares. The stock had previously closed at $914.80.

Analyst Ratings Changes

Several research analysts have recently weighed in on COST shares. Truist Financial decreased their price target on Costco Wholesale from $1,042.00 to $1,033.00 and set a "hold" rating for the company in a research note on Friday, September 26th. Daiwa Capital Markets decreased their price target on Costco Wholesale from $1,005.00 to $947.00 and set a "neutral" rating for the company in a research note on Tuesday, September 30th. Evercore ISI decreased their price target on Costco Wholesale from $1,060.00 to $1,025.00 and set an "outperform" rating for the company in a research note on Friday, September 26th. Telsey Advisory Group restated an "outperform" rating and issued a $1,100.00 price target on shares of Costco Wholesale in a research note on Wednesday, September 24th. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of Costco Wholesale in a report on Thursday. Nineteen analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $1,066.23.

Costco Wholesale Stock Up 3.1%

The company has a fifty day simple moving average of $952.50 and a 200-day simple moving average of $971.48. The company has a quick ratio of 0.55, a current ratio of 1.03 and a debt-to-equity ratio of 0.20. The firm has a market cap of $418.15 billion, a P/E ratio of 51.78, a price-to-earnings-growth ratio of 5.55 and a beta of 0.98.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results on Thursday, September 25th. The retailer reported $5.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.81 by $0.06. The business had revenue of $86.16 billion during the quarter, compared to analyst estimates of $86.01 billion. Costco Wholesale had a return on equity of 30.09% and a net margin of 2.94%.Costco Wholesale's revenue for the quarter was up 8.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $5.15 earnings per share. On average, equities analysts anticipate that Costco Wholesale Corporation will post 18.03 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Friday, August 1st were paid a $1.30 dividend. The ex-dividend date of this dividend was Friday, August 1st. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio is 28.56%.

Insider Transactions at Costco Wholesale

In other news, EVP Russell D. Miller sold 3,381 shares of the company's stock in a transaction dated Monday, September 29th. The stock was sold at an average price of $915.00, for a total value of $3,093,615.00. Following the completion of the transaction, the executive vice president owned 9,740 shares of the company's stock, valued at $8,912,100. This represents a 25.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Teresa A. Jones sold 600 shares of the company's stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $992.05, for a total value of $595,230.00. Following the completion of the transaction, the executive vice president directly owned 2,362 shares of the company's stock, valued at approximately $2,343,222.10. This trade represents a 20.26% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 7,981 shares of company stock valued at $7,588,685 over the last 90 days. Company insiders own 0.18% of the company's stock.

Institutional Investors Weigh In On Costco Wholesale

A number of hedge funds have recently made changes to their positions in the company. CGN Advisors LLC lifted its position in shares of Costco Wholesale by 12.4% in the third quarter. CGN Advisors LLC now owns 3,348 shares of the retailer's stock worth $3,099,000 after buying an additional 369 shares in the last quarter. Independence Bank of Kentucky raised its holdings in shares of Costco Wholesale by 25.7% in the third quarter. Independence Bank of Kentucky now owns 3,305 shares of the retailer's stock worth $3,059,000 after buying an additional 676 shares during the period. Baker Tilly Wealth Management LLC raised its holdings in shares of Costco Wholesale by 10.4% in the third quarter. Baker Tilly Wealth Management LLC now owns 446 shares of the retailer's stock worth $413,000 after buying an additional 42 shares during the period. AdvisorNet Financial Inc raised its holdings in shares of Costco Wholesale by 13.5% in the third quarter. AdvisorNet Financial Inc now owns 6,179 shares of the retailer's stock worth $5,719,000 after buying an additional 735 shares during the period. Finally, Financial Enhancement Group LLC raised its holdings in shares of Costco Wholesale by 15.1% in the third quarter. Financial Enhancement Group LLC now owns 297 shares of the retailer's stock worth $272,000 after buying an additional 39 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, 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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