Costco Wholesale (NASDAQ:COST) Stock Jumps 2.9% Following Dividend Announcement

Costco Wholesale Corporation (NASDAQ:COST)’s stock price was up 2.9% during trading on Wednesday following a dividend announcement from the company. The company traded as high as $982.64 and last traded at $982.00. 3,040,031 shares changed hands during mid-day trading, an increase of 39% from the average session volume of 2,189,120 shares. The stock had previously closed at $954.63.

The newly announced dividend which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be paid a dividend of $1.47 per share. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is currently 28.32%.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. HSBC upgraded Costco Wholesale to a “buy” rating in a report on Friday, September 25th. Roth Capital reaffirmed a “sell” rating and set a $781.00 target price on shares of Costco Wholesale in a report on Friday, September 25th. Truist Financial decreased their price target on Costco Wholesale from $1,011.00 to $955.00 and set a “hold” rating for the company in a research report on Friday, September 25th. Citigroup began coverage on Costco Wholesale in a report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 price objective on the stock. Finally, BMO Capital Markets reaffirmed an “outperform” rating on shares of Costco Wholesale in a research note on Friday, September 25th. Twenty-four research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Costco Wholesale presently has a consensus rating of “Moderate Buy” and an average price target of $1,087.40.

Costco Wholesale Stock Up 1.4%

The company has a market cap of $439.43 billion, a price-to-earnings ratio of 47.77, a P/E/G ratio of 4.20 and a beta of 0.88. 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 business has a fifty day moving average price of $932.33 and a two-hundred day moving average price of $963.09.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. The business had revenue of $95.72 billion during the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The firm’s revenue was up 11.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.87 earnings per share. On average, equities analysts predict that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Key Stories Impacting Costco Wholesale

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Sales momentum strengthened: Costco reported September net sales of approximately $30.02 billion, up 13% year over year. Digitally enabled sales increased 19%, while comparable sales accelerated to 7.6%, supporting expectations for continued earnings growth. September Sales Growth at Costco
• Positive Sentiment: Analyst target raised: Tigress Financial analyst Ivan Feinseth raised his Costco price target from $1,065 to $1,250 and maintained a Buy rating, citing membership loyalty, digital expansion and resilient consumer demand. Analyst Raises Costco Price Target to $1,250
• Positive Sentiment: Technical backdrop improved: The stock has reclaimed its 50-day and 200-day moving averages, adding momentum after the recent sales update. Costco Fundamental and Technical Signals
• Neutral Sentiment: Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. The payout is supportive but represents a relatively low yield of about 0.6%. Costco Quarterly Dividend Announcement
• Negative Sentiment: Valuation remains a risk: Costco trades at a premium earnings multiple, leaving limited room for execution disappointments. Margin pressure and possible additional Federal Reserve rate hikes could also weigh on the valuation.
• Negative Sentiment: An executive sold 1,100 shares worth approximately $1.05 million. The transaction is relatively small and may reflect personal financial planning, but it is a minor negative sentiment signal. Costco Executive Stock Sale

Insiders Place Their Bets

In other news, EVP William Richard Wilcox sold 1,100 shares of the business’s stock in a transaction 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 transaction, 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 legal filing with the SEC, which is available at this link. Also, EVP Claudine Adamo sold 2,200 shares of the company’s stock in a transaction on Tuesday, September 29th. The stock was 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 in the company, valued at $6,534,244.62. This trade represents 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.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of COST. Banque Pictet & Cie SA increased its position in Costco Wholesale by 6.5% during the third quarter. Banque Pictet & Cie SA now owns 7,378 shares of the retailer’s stock worth $6,716,000 after buying an additional 448 shares during the last quarter. Rise Advisors LLC grew its position in shares of Costco Wholesale by 12.4% in the third quarter. Rise Advisors LLC now owns 800 shares of the retailer’s stock valued at $729,000 after purchasing an additional 88 shares during the last quarter. Selective Wealth Management Inc. increased its stake in shares of Costco Wholesale by 9.4% in the third quarter. Selective Wealth Management Inc. now owns 654 shares of the retailer’s stock worth $640,000 after purchasing an additional 56 shares during the period. Hanson & Doremus Investment Management increased its stake in shares of Costco Wholesale by 1.4% in the third quarter. Hanson & Doremus Investment Management now owns 10,263 shares of the retailer’s stock worth $9,343,000 after purchasing an additional 137 shares during the period. Finally, Perryman Financial Advisory Inc. AD increased its stake in shares of Costco Wholesale by 1.2% in the third quarter. Perryman Financial Advisory Inc. AD now owns 11,038 shares of the retailer’s stock worth $10,048,000 after purchasing an additional 132 shares during the period. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.