Costco Wholesale (NASDAQ:COST) Stock Jumps 1.3% – What’s Next?

Costco Wholesale Corporation (NASDAQ:COST)’s share price rose 1.3% on Friday. The stock traded as high as $1,109.50 and last traded at $1,106.21. 1,866,967 shares changed hands during trading, a decline of 16% from the average daily volume of 2,209,808 shares. The stock had previously closed at $1,092.21.

More Costco Wholesale News

Here’s some of the latest news about COST:

• Positive Sentiment: Costco declared a $30-per-share special dividend, totaling about $13.3 billion and payable December 4 to shareholders of record November 24, alongside a new $4 billion share-repurchase authorization through 2030. The large cash return has helped lift investor sentiment and reflects strong cash generation. Article: Did Record Special Dividend Just Shift Costco Wholesale’s Investment Narrative?
• Negative Sentiment: Commentary cautions that Costco’s valuation is demanding, potentially limiting upside if growth or earnings disappoint. EVP Teresa Jones also sold 900 shares for about $976,000, though one insider sale alone does not establish a broader trend. Article: Does Costco’s Special Dividend Offer Enough Reason to Buy the Stock? Article: Costco Wholesale Stock: Insider Teresa Jones Sells 900 Shares
• Negative Sentiment: A voluntary recall of Kirkland Signature whipped cream over possible cleaning-chemical contamination could create limited reputational or operational concerns; Costco also faces a federal suit alleging misleading discounts. Article: Thanksgiving staple recalled at Costco over possible contamination with cleaning chemical Article: Costco faces federal suit over misleading discounts

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. UBS Group reissued a “buy” rating on shares of Costco Wholesale in a report on Thursday, September 17th. Argus reiterated a “buy” rating and set a $1,230.00 price objective on shares of Costco Wholesale in a research report on Monday, September 28th. Raymond James Financial dropped 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. Sanford C. Bernstein boosted their target price on shares of Costco Wholesale from $1,143.00 to $1,155.00 and gave the company an “outperform” rating in a research note on Wednesday. Finally, Oppenheimer restated an “outperform” rating and issued a $1,160.00 target price on shares of Costco Wholesale in a report on Wednesday, September 16th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Costco Wholesale has a consensus rating of “Moderate Buy” and an average price target of $1,092.23.

Costco Wholesale Price Performance

The company’s 50 day simple moving average is $963.50 and its 200 day simple moving average is $974.45. 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 stock has a market capitalization of $490.19 billion, a PE ratio of 53.29, a PEG ratio of 4.81 and a beta of 0.85.

Costco Wholesale (NASDAQ:COST) last issued 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 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 quarter in the prior year, the company posted $5.87 EPS. The business’s revenue for the quarter was up 11.1% compared to the same quarter last year. On average, equities analysts anticipate that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Costco Wholesale Announces Dividend

The firm also recently disclosed a special dividend, which will be paid on Friday, December 4th. Stockholders of record on Tuesday, November 24th will be given a $30.00 dividend. The ex-dividend date of this dividend is Tuesday, November 24th. Costco Wholesale’s payout ratio is currently 28.32%.

Insiders Place Their Bets

In related news, EVP Sarah Catherine George sold 756 shares of the stock in a transaction dated Thursday, November 12th. The stock was sold at an average price of $1,096.01, for a total transaction of $828,583.56. Following the transaction, the executive vice president directly owned 3,112 shares in the company, valued at approximately $3,410,783.12. This represents a 19.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, EVP Teresa A. Jones sold 900 shares of the firm’s stock in a transaction dated Wednesday, November 11th. The stock was sold at an average price of $1,083.95, for a total value of $975,555.00. Following the completion of the sale, the executive vice president directly owned 5,698 shares in the company, valued at approximately $6,176,347.10. The trade was a 13.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 4,956 shares of company stock valued at $4,873,216. 0.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Frisch Financial Group Inc. grew its position in Costco Wholesale by 1.0% in the 1st quarter. Frisch Financial Group Inc. now owns 1,049 shares of the retailer’s stock worth $1,045,000 after purchasing an additional 10 shares during the last quarter. Main Street Group LTD increased its stake in Costco Wholesale by 0.8% during the first quarter. Main Street Group LTD now owns 1,226 shares of the retailer’s stock valued at $1,221,000 after acquiring an additional 10 shares during the period. HORAN Wealth LLC increased its stake in Costco Wholesale by 1.3% during the first quarter. HORAN Wealth LLC now owns 803 shares of the retailer’s stock valued at $769,000 after acquiring an additional 10 shares during the period. SHUTTLEWORTH & Co raised its holdings in Costco Wholesale by 0.4% in the 1st quarter. SHUTTLEWORTH & Co now owns 2,442 shares of the retailer’s stock valued at $2,433,000 after acquiring an additional 10 shares in the last quarter. Finally, Trace Wealth Advisors LLC raised its holdings in Costco Wholesale by 0.4% in the 3rd quarter. Trace Wealth Advisors LLC now owns 2,758 shares of the retailer’s stock valued at $2,511,000 after acquiring an additional 10 shares in the last quarter. Institutional investors and hedge funds own 68.48% of the company’s stock.

Costco Wholesale Company Profile

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.