Costco Wholesale (NASDAQ:COST) Stock Price Up 1.8% – What’s Next?

Costco Wholesale Corporation (NASDAQ:COST)’s stock price traded up 1.8% on Thursday. The company traded as high as $1,081.55 and last traded at $1,065.59. 4,493,747 shares changed hands during mid-day trading, an increase of 104% from the average daily 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 Analysts Forecast Growth

COST has been the topic of a number of analyst reports. CICC Research began coverage on shares of Costco Wholesale in a research note on Wednesday, October 21st. They set an “outperform” rating and a $1,050.00 price objective on the stock. Freedom Broker dropped their target price on Costco Wholesale from $1,030.00 to $1,010.00 and set a “buy” rating on the stock in a research report on Friday, September 25th. Raymond James Financial reduced their price objective on Costco Wholesale from $1,100.00 to $1,050.00 and set an “outperform” rating for the company in a research report on Friday, September 25th. Mizuho decreased their target price on Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating for the company in a research note on Friday, September 25th. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on shares of Costco Wholesale from $1,091.00 to $1,079.00 and set a “buy” rating for the company in a research note on Monday, September 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-four have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $1,086.19.

Costco Wholesale Stock Up 1.8%

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 firm has a market capitalization of $472.19 billion, a price-to-earnings ratio of 51.33, a P/E/G ratio of 4.36 and a beta of 0.85. The business’s 50-day moving average is $947.85 and its two-hundred day moving average is $971.54.

Costco Wholesale (NASDAQ:COST) last posted its quarterly 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. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The business had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion. During the same period in the prior year, the company posted $5.87 EPS. The business’s revenue for the quarter was up 11.1% on a year-over-year basis. On average, equities analysts anticipate that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Costco Wholesale Dividend Announcement

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

Insiders Place Their Bets

In related news, EVP William Richard Wilcox sold 1,100 shares of the business’s stock in a transaction dated 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 sale, the executive vice president directly owned 3,094 shares in the company, valued at $2,964,701.74. The trade was a 26.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction dated 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 sale, the executive vice president directly owned 7,134 shares in the company, valued at approximately $6,534,244.62. The trade was a 23.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.10% of the company’s stock.

Hedge Funds Weigh In On Costco Wholesale

Hedge funds have recently bought and sold shares of the stock. Contravisory Investment Management Inc. grew its stake in Costco Wholesale by 107.7% during the third quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer’s stock worth $25,000 after buying an additional 14 shares during the period. C M Bidwell & Associates Ltd. acquired a new stake in shares of Costco Wholesale in the second quarter worth $28,000. Burk Holdings LLC purchased a new position in shares of Costco Wholesale in the 2nd quarter valued at $30,000. Manning & Napier Advisors LLC purchased a new position in shares of Costco Wholesale in the 2nd quarter valued at $30,000. Finally, John Boyer Inc. purchased a new position in shares of Costco Wholesale in the 3rd quarter valued at $32,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.

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.