Costco Wholesale (NASDAQ:COST) Stock Price Up 1.8% – Still a Buy?

Costco Wholesale Corporation (NASDAQ:COST) shares rose 1.8% during trading on Thursday. The stock traded as high as $1,081.55 and last traded at $1,065.59. 4,493,747 shares were traded during mid-day trading, an increase of 104% from the average session volume of 2,206,327 shares. The stock had previously closed at $1,046.47.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco reported October net sales of $24.50 billion, up 12.6% year over year. Comparable sales rose 12.6% in the U.S. and 4.9% in Canada; sales for the first nine weeks of the retail year increased 12.8%. The broad-based growth may reinforce confidence in Costco’s demand and operating momentum. Costco October sales results
• Neutral Sentiment: Costco is expanding its store footprint, with a new Boise-area location reported and plans for a store in Thurston County. These developments could support longer-term growth, but are unlikely to materially affect near-term results. New Costco opening in Boise area
• Neutral Sentiment: Jackery said its FridgeGuard backup system, previously exclusive to Costco, will also be sold on Amazon and Jackery.com. The change reduces Costco’s exclusivity for this product, though the sales impact is unclear. Jackery expands FridgeGuard retail availability
• Negative Sentiment: Citi maintained a Hold rating and a $1,020 price target, citing Costco’s strong momentum but full valuation. Other commentary likewise cautioned that the stock’s elevated earnings multiple leaves limited room for disappointment, which could temper enthusiasm despite robust sales. Citi maintains Hold rating and $1,020 price target

Wall Street Analyst Weigh In

A number of analysts recently commented on COST shares. BMO Capital Markets reiterated an “outperform” rating on shares of Costco Wholesale in a report on Friday, September 25th. HSBC upgraded Costco Wholesale to a “buy” rating in a research note on Friday, September 25th. DA Davidson raised their target price on Costco Wholesale from $1,000.00 to $1,040.00 and gave the company a “neutral” rating in a research report on Friday, September 25th. JPMorgan Chase & Co. lowered their target price on Costco Wholesale from $1,100.00 to $1,015.00 and set an “overweight” rating on the stock in a research note on Friday, September 25th. Finally, Sanford C. Bernstein cut their price target on shares of Costco Wholesale from $1,144.00 to $1,143.00 and set an “outperform” rating on the stock in a report on Friday, September 25th. One research analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $1,086.19.

Costco Wholesale Price Performance

The business’s fifty day moving average price is $947.85 and its 200-day moving average price is $971.54. 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 company has a market capitalization of $472.19 billion, a P/E ratio of 51.33, a P/E/G ratio of 4.36 and a beta of 0.85.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating analysts’ consensus estimates of $6.54 by $0.21. The company had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. Costco Wholesale’s revenue for the quarter was up 11.1% compared to the same quarter last year. During the same period last year, the firm posted $5.87 EPS. As a group, sell-side analysts predict that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be given a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Friday, October 30th. Costco Wholesale’s payout ratio is presently 28.32%.

Insider Buying and Selling

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the firm’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 transaction 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 approximately $6,534,244.62. This trade represents a 23.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP William Richard Wilcox sold 1,100 shares of the firm’s stock in a transaction that occurred on 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 transaction, the executive vice president directly owned 3,094 shares of the company’s stock, valued at approximately $2,964,701.74. This trade represents a 26.23% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Costco Wholesale

A number of hedge funds and other institutional investors have recently bought and sold shares of COST. Sarasin & Partners LLP boosted its position in Costco Wholesale by 6.9% in the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock worth $200,372,000 after purchasing an additional 13,795 shares in the last quarter. Silvant Capital Management LLC purchased a new stake in Costco Wholesale during the second quarter worth about $16,013,000. Nissay Asset Management Corp Japan boosted its holdings in Costco Wholesale by 4.1% in the second quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer’s stock valued at $148,193,000 after purchasing an additional 6,200 shares in the last quarter. Hyperion Asset Management Ltd grew its stake in Costco Wholesale by 9.0% during the 2nd quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer’s stock worth $64,325,000 after buying an additional 5,656 shares during the last quarter. Finally, Concurrent Investment Advisors LLC raised its position in Costco Wholesale by 15.0% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 22,766 shares of the retailer’s stock worth $21,297,000 after buying an additional 2,974 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Costco Wholesale Company Profile

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.