Costco Wholesale (NASDAQ:COST) Shares Up 1.2% – Here’s Why

Shares of Costco Wholesale Corporation (NASDAQ:COST) shot up 1.2% on Monday. The company traded as high as $1,067.49 and last traded at $1,066.18. 2,194,085 shares traded hands during trading, a decline of 1% from the average session volume of 2,214,184 shares. The stock had previously closed at $1,053.56.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Raymond James Financial cut their price target on Costco Wholesale from $1,100.00 to $1,050.00 and set an “outperform” rating on the stock in a research note on Friday, September 25th. JPMorgan Chase & Co. lifted their price objective on Costco Wholesale from $1,015.00 to $1,150.00 and gave the stock an “overweight” rating in a research report on Thursday. Sanford C. Bernstein dropped their price objective on Costco Wholesale from $1,144.00 to $1,143.00 and set an “outperform” rating for the company in a report on Friday, September 25th. Bank of America cut their target price on shares of Costco Wholesale from $1,200.00 to $1,095.00 and set a “buy” rating on the stock in a research report on Wednesday, September 16th. Finally, Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a research report on Monday, September 28th. One research analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $1,090.55.

Costco Wholesale Price Performance

The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. The company has a 50-day moving average price of $952.42 and a 200-day moving average price of $972.49. The firm has a market capitalization of $472.46 billion, a P/E ratio of 51.36, a price-to-earnings-growth ratio of 4.66 and a beta of 0.85.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 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 business had revenue of $95.72 billion during the quarter, compared to the consensus estimate of $94.97 billion. During the same quarter in the prior year, the company posted $5.87 earnings per share. The firm’s revenue was up 11.1% on a year-over-year basis. On average, sell-side analysts predict that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be paid a $1.47 dividend. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio is 28.32%.

Insider Transactions at Costco Wholesale

In other news, EVP Claudine Adamo sold 2,200 shares of the company’s 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 sale, the executive vice president directly owned 7,134 shares of the company’s stock, valued at $6,534,244.62. This represents a 23.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction that occurred on 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 completion of the sale, the executive vice president owned 3,094 shares in the company, valued at $2,964,701.74. This represents a 26.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

Hedge funds have recently bought and sold shares of the company. First National Bank of Hutchinson boosted its holdings in shares of Costco Wholesale by 0.9% in the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer’s stock valued at $1,094,000 after buying an additional 10 shares during the period. Frisch Financial Group Inc. increased its position in shares of Costco Wholesale by 1.0% during the first quarter. Frisch Financial Group Inc. now owns 1,049 shares of the retailer’s stock worth $1,045,000 after acquiring an additional 10 shares in the last quarter. Main Street Group LTD increased its position in shares of Costco Wholesale by 0.8% during the first quarter. Main Street Group LTD now owns 1,226 shares of the retailer’s stock worth $1,221,000 after acquiring an additional 10 shares in the last quarter. HORAN Wealth LLC raised its holdings in shares of Costco Wholesale by 1.3% during the first quarter. HORAN Wealth LLC now owns 803 shares of the retailer’s stock worth $769,000 after acquiring an additional 10 shares during the period. Finally, SHUTTLEWORTH & Co raised its holdings in shares of Costco Wholesale by 0.4% during the first quarter. SHUTTLEWORTH & Co now owns 2,442 shares of the retailer’s stock worth $2,433,000 after acquiring an additional 10 shares during the period. 68.48% of the stock is currently owned by institutional investors and hedge funds.

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.