Costco Wholesale Corporation (NASDAQ:COST – Get Free Report) shot up 2.7% during trading on Wednesday. The stock traded as high as $1,053.66 and last traded at $1,046.47. 2,565,082 shares were traded during mid-day trading, an increase of 17% from the average session volume of 2,196,776 shares. The stock had previously closed at $1,019.26.
Key Stories Impacting Costco Wholesale
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Costco’s latest reported quarter topped analyst estimates: earnings per share were $6.75 versus a $6.54 consensus, while revenue grew 11.1% year over year. That performance reinforces the growth case behind the stock. Costco Wholesale stock stays near highs as growth meets rich valuation
- Positive Sentiment: A proposed new Costco in Thurston County would add a location and includes plans for roundabouts and a 2.5-acre forest. The project points to continued expansion, though the article does not specify timing or financial impact. Plan for new Costco in Thurston County includes new roundabouts, 2.5-acre forest
- Neutral Sentiment: Commentary presents Costco as a potential long-term blue-chip holding, citing its loyal membership base and defensive reputation. Those qualities may support the business in uncertain markets, but the articles offer no new company results or near-term catalyst. Costco’s Capital Preservation Function Will Be on Display Over the Next Few Weeks
- Negative Sentiment: Several reports warn that COST’s valuation is demanding after a strong multiyear run and with shares above $1,000. A high multiple leaves less room for execution missteps; the next few weeks may test whether earnings growth and Costco’s defensive appeal justify the premium. Costco (COST) Stock Looks Rich Despite Its Healthcare Push
Analysts Set New Price Targets
Several analysts have issued reports on COST shares. HSBC raised shares of Costco Wholesale to a “buy” rating in a research report on Friday, September 25th. Wells Fargo & Company dropped their price objective on shares of Costco Wholesale from $1,000.00 to $950.00 and set an “equal weight” rating on the stock in a research note on Friday, September 25th. Tigress Financial raised their price target on shares of Costco Wholesale from $1,065.00 to $1,250.00 and gave the company a “buy” rating in a research note on Thursday, October 15th. Argus restated a “buy” rating and issued a $1,230.00 price target on shares of Costco Wholesale in a research note on Monday, September 28th. Finally, Mizuho cut their target price on Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating on the stock in a research note on Friday, September 25th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Costco Wholesale has an average rating of “Moderate Buy” and an average target price of $1,086.19.
View Our Latest Analysis on COST
Costco Wholesale Trading Up 2.7%
The firm has a market cap of $463.77 billion, a P/E ratio of 50.41, a PEG ratio of 4.45 and a beta of 0.85. The company has a 50 day moving average of $946.12 and a 200 day moving average of $971.09. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06.
Costco Wholesale (NASDAQ:COST – Get Free Report) last released its quarterly 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 net margin of 3.04% and a return on equity of 27.60%. The company had revenue of $95.72 billion during the quarter, compared to analysts’ expectations of $94.97 billion. During the same period in the prior year, the company earned $5.87 earnings per share. The business’s quarterly revenue was up 11.1% compared to the same quarter last year. Analysts predict that Costco Wholesale Corporation will post 22.70 EPS for the current fiscal year.
Costco Wholesale Dividend Announcement
The firm also recently declared 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. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Friday, October 30th. Costco Wholesale’s dividend payout ratio (DPR) is currently 28.32%.
Insider Transactions at Costco Wholesale
In related news, EVP Claudine Adamo sold 2,200 shares of the business’s stock in a transaction that occurred on Tuesday, September 29th. The shares were 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 in the company, valued at $6,534,244.62. The trade was a 23.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of the company’s stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the transaction, the executive vice president owned 3,094 shares in the company, valued at approximately $2,964,701.74. The trade was a 26.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.10% of the company’s stock.
Institutional Trading of Costco Wholesale
A number of institutional investors have recently modified their holdings of the company. AEGON ASSET MANAGEMENT UK Plc increased its stake in shares of Costco Wholesale by 7.3% during the 3rd quarter. AEGON ASSET MANAGEMENT UK Plc now owns 43,235 shares of the retailer’s stock worth $39,359,000 after purchasing an additional 2,942 shares during the last quarter. Texas Bank & Trust Co lifted its stake in Costco Wholesale by 1.9% in the 3rd quarter. Texas Bank & Trust Co now owns 1,955 shares of the retailer’s stock valued at $1,780,000 after purchasing an additional 37 shares during the last quarter. Fairscale Capital LLC lifted its stake in Costco Wholesale by 3.1% in the 3rd quarter. Fairscale Capital LLC now owns 404 shares of the retailer’s stock valued at $368,000 after purchasing an additional 12 shares during the last quarter. Vestor Capital LLC grew its holdings in Costco Wholesale by 443.3% during the third quarter. Vestor Capital LLC now owns 3,510 shares of the retailer’s stock worth $3,195,000 after purchasing an additional 2,864 shares during the period. Finally, Retirement Systems of Alabama increased its position in Costco Wholesale by 3.0% during the third quarter. Retirement Systems of Alabama now owns 199,130 shares of the retailer’s stock worth $181,276,000 after buying an additional 5,744 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors.
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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