Costco Wholesale (NASDAQ:COST) Stock Price Up 1.2% - Time to Buy?

Key Points

• Costco shares rose 1.2% to $1,066.18 in Monday trading, with volume roughly in line with its average.
• In its latest quarter, Costco reported EPS of $6.75 and revenue of $95.72 billion, topping analyst estimates; revenue increased 11.1% year over year.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $1,090.55. Costco also declared a quarterly dividend of $1.47 per share, a 0.6% annualized yield.

Shares of Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) rose 1.2% during trading on Monday. The company traded as high as $1,067.49 and last traded at $1,066.18. Approximately 2,194,085 shares were traded during trading, a decline of 1% from the average daily volume of 2,214,184 shares. The stock had previously closed at $1,053.56.

Analyst Upgrades and Downgrades

COST has been the subject of a number of research reports. Mizuho decreased their price target on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating for the company in a research report on Friday, September 25th. Jefferies Financial Group reduced their price objective on Costco Wholesale from $1,130.00 to $1,100.00 in a research note on Friday, September 25th. Freedom Broker decreased their target price on Costco Wholesale from $1,030.00 to $1,010.00 and set a "buy" rating for the company in a research report on Friday, September 25th. HSBC upgraded Costco Wholesale to a "buy" rating in a research note on Friday, September 25th. Finally, Roth Capital reiterated a "sell" rating and set a $781.00 target price on shares of Costco Wholesale in a report on Friday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $1,090.55.

Costco Wholesale Trading Up 1.2%

The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. The business has a 50 day simple moving average of $952.42 and a two-hundred day simple moving average of $972.49. The stock has a market cap of $472.46 billion, a price-to-earnings ratio of 51.36, a price-to-earnings-growth ratio of 4.66 and a beta of 0.85.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.54 by $0.21. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The company had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. During the same period in the prior year, the company posted $5.87 EPS. Costco Wholesale's quarterly revenue was up 11.1% on a year-over-year basis. As a group, equities analysts anticipate that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be paid 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 is Friday, October 30th. Costco Wholesale's dividend payout ratio is 28.32%.

Insider Buying and Selling at Costco Wholesale

In other news, EVP William Richard Wilcox sold 1,100 shares of the business's stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total value of $1,054,031.00. Following the completion of the sale, the executive vice president owned 3,094 shares of the company's stock, valued at approximately $2,964,701.74. The trade was a 26.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the transaction, the executive vice president owned 7,134 shares of the company's stock, valued at $6,534,244.62. This trade represents a 23.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Kranot Hishtalmut Le Morim Ve Gananot Havera Menahelet LTD grew its stake in shares of Costco Wholesale by 44.4% during the third quarter. Kranot Hishtalmut Le Morim Ve Gananot Havera Menahelet LTD now owns 36,535 shares of the retailer's stock valued at $33,259,000 after purchasing an additional 11,225 shares during the last quarter. Nicholson Wealth Management Group LLC raised its position in Costco Wholesale by 2.2% in the 3rd quarter. Nicholson Wealth Management Group LLC now owns 2,174 shares of the retailer's stock worth $1,979,000 after purchasing an additional 47 shares during the last quarter. SGL Investment Advisors Inc. raised its position in Costco Wholesale by 25.9% in the 3rd quarter. SGL Investment Advisors Inc. now owns 966 shares of the retailer's stock worth $879,000 after purchasing an additional 199 shares during the last quarter. Hantz Financial Services Inc. raised its position in Costco Wholesale by 5.8% in the 3rd quarter. Hantz Financial Services Inc. now owns 7,891 shares of the retailer's stock worth $7,184,000 after purchasing an additional 433 shares during the last quarter. Finally, IFG Advisory LLC lifted its holdings in Costco Wholesale by 12.3% during the 3rd quarter. IFG Advisory LLC now owns 2,589 shares of the retailer's stock worth $2,357,000 after buying an additional 284 shares in the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

About Costco Wholesale

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally low prices. Its products include groceries, fresh foods, appliances, electronics, apparel, furniture, and household goods, as well as its Kirkland Signature private-label line.

The company also provides services such as gasoline stations, pharmacies, optical and hearing-aid centers, food courts, and travel offerings. Costco serves members through warehouses and online channels.

Founded in 1983 in Seattle, Costco has expanded across North America, Europe, Asia, and Australia.

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