Costco Wholesale (NASDAQ:COST) Trading 1.1% Higher – Still a Buy?

Costco Wholesale Corporation (NASDAQ:COST) traded up 1.1% during trading on Monday . The company traded as high as $930.98 and last traded at $926.43. 2,368,798 shares traded hands during trading, an increase of 5% from the average daily volume of 2,248,392 shares. The stock had previously closed at $916.25.

Costco Wholesale News Summary

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: RBC reiterated Costco as a top retail name, saying its “unique” model should keep driving market share gains and supporting the stock. Costco Wholesale to Sustain Market Share Gains on ‘Unique’ Model, RBC Capital Markets Says
• Positive Sentiment: June sales and digital growth were strong enough to reinforce the view that Costco still has healthy consumer demand behind it. Are Costco’s June Sales Enough to Defend Its Rich Valuation?
• Neutral Sentiment: Wall Street research chatter and media coverage continue to spotlight Costco’s broad cultural appeal and pricing model, but these stories are not direct fundamental catalysts. Costco (COST) Stock Climbs as RBC Names Retailer a Top Industry Player Despite Hold Rating
• Negative Sentiment: RBC’s Hold/Sector Perform stance and comments about valuation suggest much of Costco’s strength may already be priced in, which could cap further gains. RBC says Costco is one of retail’s best stories, but flags rich valuation
• Negative Sentiment: Analysts also pointed to slowing comparable sales and softer membership growth as risks to Costco’s premium valuation. Are Costco’s June Sales Enough to Defend Its Rich Valuation?

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on COST. Roth Capital boosted their price objective 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. Citigroup assumed coverage on Costco Wholesale in a report on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price objective for the company. Oppenheimer boosted their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 19th. Wells Fargo & Company raised their target price on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the company an “equal weight” rating in a research note on Thursday, April 9th. Finally, Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $1,059.07.

Costco Wholesale Price Performance

The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The company has a market cap of $410.89 billion, a PE ratio of 46.61, a P/E/G ratio of 4.44 and a beta of 0.88. The stock has a 50-day simple moving average of $983.66 and a 200 day simple moving average of $976.13.

Costco Wholesale (NASDAQ:COST) last released its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). The company had revenue of $70.53 billion during the quarter, compared to analysts’ expectations 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 last year, the business posted $4.28 earnings per share. Equities analysts expect that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Friday, July 24th will be issued a dividend of $1.47 per share. The ex-dividend date of this dividend is Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is presently 29.58%.

Insiders Place Their Bets

In related news, Director Kenneth D. Denman sold 885 shares of the firm’s stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director owned 4,779 shares of the company’s stock, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Costco Wholesale

Several hedge funds and other institutional investors have recently made changes to their positions in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in Costco Wholesale during the fourth quarter worth $27,000. Mcguire Capital Advisors Inc. purchased a new position in shares of Costco Wholesale in the 4th quarter valued at about $28,000. Lifetime Wealth Management P.C. acquired a new stake in shares of Costco Wholesale during the 4th quarter valued at approximately $28,000. Manning & Napier Advisors LLC boosted its stake in shares of Costco Wholesale by 750.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer’s stock worth $34,000 after acquiring an additional 30 shares in the last quarter. Finally, Entrust Financial LLC purchased a new position in Costco Wholesale in the 4th quarter valued at approximately $31,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.

About Costco Wholesale

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.