Costco Wholesale (NASDAQ:COST) Stock Jumps 1.2% – What’s Next?

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

Trending Headlines about Costco Wholesale

These are some of the COST headlines that stood out recently:

• Positive Sentiment: The board also reauthorized a $4 billion share-repurchase program, adding another potential source of shareholder returns over the coming years. Dividend and buyback details
• Positive Sentiment: Bernstein raised its price target to $1,155 from $1,143 and maintained an Outperform rating, supporting the bullish view around Costco’s capital returns and business quality. Analyst coverage
• Negative Sentiment: Valuation is a key risk: Costco trades at a substantial premium, and Freedom Broker downgraded the stock from Buy to Hold, citing valuation. The premium could limit further upside if growth or operating trends disappoint. Freedom Broker downgrade

Analyst Ratings Changes

Several analysts have recently weighed in on COST shares. Robert W. Baird set a $1,175.00 price target on shares of Costco Wholesale in a research note on Friday, September 25th. BTIG Research reiterated a “buy” rating and issued a $1,125.00 price objective on shares of Costco Wholesale in a report on Wednesday, September 23rd. Roth Capital reiterated a “sell” rating and issued a $781.00 price objective on shares of Costco Wholesale in a research report on Friday, September 25th. Oppenheimer reissued an “outperform” rating and set a $1,160.00 target price on shares of Costco Wholesale in a research note on Wednesday, September 16th. Finally, UBS Group restated a “buy” rating on shares of Costco Wholesale in a research report on Thursday, September 17th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $1,092.23.

Costco Wholesale Price Performance

The stock has a market cap of $481.95 billion, a price-to-earnings ratio of 52.39, a P/E/G ratio of 4.71 and a beta of 0.85. 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’s fifty day moving average is $957.28 and its two-hundred day moving average is $973.36.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping the consensus estimate 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 analyst estimates of $94.97 billion. During the same period last year, the business posted $5.87 earnings per share. The company’s quarterly revenue was up 11.1% on a year-over-year basis. As a group, research analysts predict that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Costco Wholesale Announces Dividend

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

Insider Activity

In other news, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction dated 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 sale, the executive vice president owned 3,094 shares of the company’s stock, valued at approximately $2,964,701.74. This represents a 26.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 directly 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 position. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Costco Wholesale

A number of large investors have recently made changes to their positions in COST. Bank of America Corp DE purchased a new position in Costco Wholesale in the second quarter valued at $6,781,946,000. State Street Corp lifted its holdings in Costco Wholesale by 31.7% during the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock worth $22,359,224,000 after buying an additional 5,749,362 shares during the last quarter. Legal & General Group Plc purchased a new stake in Costco Wholesale during the 2nd quarter worth about $2,362,188,000. Ascentis Wealth Management LLC boosted its position in shares of Costco Wholesale by 103,637.0% during the 2nd quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer’s stock worth $2,549,616,000 after acquiring an additional 2,497,652 shares in the last quarter. Finally, Corient Private Wealth LP acquired a new position in shares of Costco Wholesale during the 2nd quarter worth about $726,689,000. 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.