Shares of Costco Wholesale Corporation (NASDAQ:COST – Get Free Report) fell 1.1% during mid-day trading on Friday. The stock traded as low as $1,043.00 and last traded at $1,053.56. 2,483,467 shares changed hands during trading, an increase of 12% from the average session volume of 2,209,918 shares. The stock had previously closed at $1,065.59.
Trending Headlines about Costco Wholesale
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: October net sales rose 12.6% year over year to $24.50 billion. Comparable sales were also strong, and digital growth accelerated, reinforcing the company’s sales momentum. Article: Costco’s October Net Sales Jump 12.6% as Digital Growth Accelerates
- Positive Sentiment: JPMorgan raised its price target from $1,015 to $1,150 and maintained an Overweight rating. Bank of America also reiterated its Buy rating after U.S. comparable sales improved. Article: Costco retains BofA buy as October US comps rise
- Neutral Sentiment: Analyst views remain divided: the sales performance and momentum are supportive, but the next move may depend on whether earnings growth can justify the stock’s valuation. Article: Costco Stock: Why Analysts Are Split Despite Strong October Sales
- Negative Sentiment: Valuation is the main risk: commentary highlights a roughly 49-times trailing earnings multiple, which could leave shares vulnerable if growth or earnings estimates disappoint. Citi maintained a Hold rating with a $1,020 target, below the recent share price. Article: Costco Stock: Earnings Growth Could Shape the Next Big Move
Wall Street Analysts Forecast Growth
A number of research analysts have recently commented on COST shares. Mizuho dropped their price target on Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating on the stock in a research report on Friday, September 25th. DA Davidson lifted their price objective on Costco Wholesale from $1,000.00 to $1,040.00 and gave the stock a “neutral” rating in a report on Friday, September 25th. Wells Fargo & Company lowered their price objective on 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. Truist Financial dropped their price objective on shares of Costco Wholesale from $1,011.00 to $955.00 and set a “hold” rating on the stock in a report on Friday, September 25th. Finally, Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a research report on Monday, September 28th. 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 assigned a Sell rating to the company. According to MarketBeat.com, Costco Wholesale presently has a consensus rating of “Moderate Buy” and an average price target of $1,090.55.
Costco Wholesale Stock Down 1.1%
The stock has a market capitalization of $466.86 billion, a P/E ratio of 50.75, a price-to-earnings-growth ratio of 4.47 and a beta of 0.85. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. The stock has a fifty day moving average price of $950.04 and a 200 day moving average price of $972.05.
Costco Wholesale (NASDAQ:COST – Get Free Report) last released its quarterly earnings data 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 return on equity of 27.60% and a net margin of 3.04%. The company had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. During the same period in the previous year, the company posted $5.87 EPS. The firm’s revenue for the quarter was up 11.1% compared to the same quarter last year. On average, research analysts forecast 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 given a dividend of $1.47 per share. The ex-dividend date is Friday, October 30th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio 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 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. The trade was a 23.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of the company’s stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction 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. This trade represents a 26.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.10% of the company’s stock.
Institutional Inflows and Outflows
Hedge funds have recently made changes to their positions in the company. Money Concepts Capital Corp boosted its position in shares of Costco Wholesale by 2.3% during the third quarter. Money Concepts Capital Corp now owns 3,405 shares of the retailer’s stock worth $3,100,000 after buying an additional 75 shares during the period. Allworth Financial LP grew its stake in shares of Costco Wholesale by 18.6% in the third quarter. Allworth Financial LP now owns 75,527 shares of the retailer’s stock valued at $70,653,000 after buying an additional 11,824 shares in the last quarter. GKV Capital Management Co. Inc. raised its holdings in shares of Costco Wholesale by 3.2% in the 3rd quarter. GKV Capital Management Co. Inc. now owns 9,084 shares of the retailer’s stock valued at $8,270,000 after buying an additional 284 shares during the period. Fisher Asset Management LLC raised its holdings in shares of Costco Wholesale by 1.2% in the 3rd quarter. Fisher Asset Management LLC now owns 3,291,669 shares of the retailer’s stock valued at $2,996,538,000 after buying an additional 38,629 shares during the period. Finally, Altar Rock LLC purchased a new stake in shares of Costco Wholesale in the 3rd quarter valued at $202,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.
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.
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