Costco Wholesale Corporation (NASDAQ:COST – Get Free Report)’s share price was down 1.3% during trading on Tuesday. The company traded as low as $989.04 and last traded at $992.13. 2,226,488 shares traded hands during trading, an increase of 1% from the average session volume of 2,195,043 shares. The stock had previously closed at $1,005.16.
Trending Headlines about Costco Wholesale
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Costco reportedly delivered its fifth consecutive earnings beat, while its defensive membership model and recent share-price strength support the case for further long-term gains. Costco Remains a Defensive Compounder Awaiting Its Next Leg Up
- Positive Sentiment: AI-driven search traffic is growing rapidly and producing strong online conversion rates, potentially giving Costco a new source of e-commerce growth. Costco’s AI Search Traffic Soars
- Positive Sentiment: Costco is expanding health-related offerings, including pharmacy services and a nationwide integration with NationsBenefits that allows eligible members to use benefit cards at more than 600 warehouses. These initiatives could improve member engagement and renewals. NationsBenefits Expands Member Access to Health Benefits Across Costco Stores Nationwide
- Neutral Sentiment: Technical analyst Katie Stockton sees improving momentum heading into November, which may support the shares if buying interest continues. Costco Momentum Is Improving Heading Into November
- Neutral Sentiment: Costco is offering new Gold Star members a $45 digital shop card with a $65 membership, a promotion that could encourage sign-ups but may modestly reduce initial membership economics. New Costco Gold Star Members Get a $45 Digital Costco Shop Card With Sign-Up
- Negative Sentiment: Valuation remains the primary concern: analysts and commentators note that COST trades at a premium earnings multiple, requiring sustained flawless execution to justify its price. Is Costco Wholesale Fully Valued?
- Negative Sentiment: Exchange-traded funds were net sellers of Costco shares on October 23, adding near-term technical pressure. ETFs Are Net Sellers of Costco
- Negative Sentiment: Costco withdrew an application for a proposed warehouse near Highway 55 in Eagle, removing one potential source of future unit expansion in that market. Costco Pulls Application for Warehouse Near Highway 55 in Eagle
Analyst Ratings Changes
Several equities analysts have weighed in on the company. Deutsche Bank Aktiengesellschaft cut their target price on Costco Wholesale from $1,091.00 to $1,079.00 and set a “buy” rating on the stock in a research note on Monday, September 28th. JPMorgan Chase & Co. decreased their target price on Costco Wholesale from $1,100.00 to $1,015.00 and set an “overweight” rating for the company in a research report on Friday, September 25th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $1,000.00 price target on shares of Costco Wholesale in a research note on Friday, October 9th. TD Cowen reiterated a “buy” rating on shares of Costco Wholesale in a research report on Friday, September 25th. Finally, Roth Capital reissued a “sell” rating and set a $781.00 price objective on shares of Costco Wholesale in a research note on Friday, September 25th. Twenty-five research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $1,086.19.
View Our Latest Research Report on COST
Costco Wholesale Trading Down 1.3%
The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. The business’s fifty day moving average is $938.87 and its 200 day moving average is $968.09. The firm has a market capitalization of $439.64 billion, a price-to-earnings ratio of 47.79, a price-to-earnings-growth ratio of 4.29 and a beta of 0.88.
Costco Wholesale (NASDAQ:COST – Get Free Report) last announced its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. The firm had revenue of $95.72 billion during the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The company’s revenue for the quarter was up 11.1% compared to the same quarter last year. During the same period in the prior year, the business earned $5.87 EPS. Equities analysts predict that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.
Costco Wholesale Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be issued a dividend of $1.47 per share. The ex-dividend date is Friday, October 30th. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale’s dividend payout ratio is presently 28.32%.
Insider Activity
In related news, EVP William Richard Wilcox sold 1,100 shares of Costco Wholesale stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total value of $1,054,031.00. Following 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Claudine Adamo sold 2,200 shares of the company’s stock in a transaction that occurred on 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 sale, the executive vice president owned 7,134 shares in the company, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is owned by company insiders.
Hedge Funds Weigh In On Costco Wholesale
Institutional investors and hedge funds have recently modified their holdings of the stock. State Street Corp lifted its stake in shares of Costco Wholesale by 31.7% during the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock worth $22,359,224,000 after buying an additional 5,749,362 shares during the last quarter. Bank of America Corp DE lifted its position in Costco Wholesale by 11.5% during the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock worth $7,488,203,000 after acquiring an additional 773,651 shares during the last quarter. Diamant Asset Management Inc. boosted its holdings in shares of Costco Wholesale by 99,278.0% during the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after acquiring an additional 6,720,130 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Costco Wholesale by 5.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,068,312 shares of the retailer’s stock worth $2,870,314,000 after acquiring an additional 160,893 shares during the period. Finally, Amundi grew its position in shares of Costco Wholesale by 11.1% in the first quarter. Amundi now owns 2,839,016 shares of the retailer’s stock valued at $2,828,881,000 after purchasing an additional 283,360 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors and hedge funds.
About Costco Wholesale
Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.
Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.
The company traces its roots to Price Club, which opened in San Diego in 1976.
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