Costco Wholesale (NASDAQ:COST) Trading 2.5% Higher – Time to Buy?

Costco Wholesale Corporation (NASDAQ:COST)’s stock price shot up 2.5% during mid-day trading on Monday . The stock traded as high as $974.49 and last traded at $971.40. 1,977,770 shares traded hands during mid-day trading, a decline of 10% from the average daily volume of 2,193,844 shares. The stock had previously closed at $947.74.

Analyst Ratings Changes

A number of analysts have recently commented on COST shares. Bank of America boosted their price objective on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a “buy” rating in a research note on Friday, May 29th. Citigroup assumed coverage on Costco Wholesale in a research note on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price target on the stock. TD Cowen reaffirmed a “buy” rating and set a $1,175.00 price objective on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Royal Bank Of Canada assumed coverage on shares of Costco Wholesale in a report on Monday, July 13th. They issued a “sector perform” rating and a $1,000.00 target price for the company. Finally, Mizuho set a $1,100.00 target price on shares of Costco Wholesale in a research report on Monday, June 1st. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $1,059.53.

Costco Wholesale Price Performance

The company’s 50-day simple moving average is $947.14 and its 200 day simple moving average is $981.04. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The stock has a market capitalization of $430.80 billion, a price-to-earnings ratio of 48.86, a P/E/G ratio of 4.51 and a beta of 0.87.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same quarter in the previous year, the firm posted $4.28 earnings per share. Equities research analysts forecast that Costco Wholesale Corporation will post 20.42 EPS for the current year.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were given a $1.47 dividend. The ex-dividend date was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is currently 29.58%.

Insider Activity

In other news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

Institutional investors and hedge funds have recently made changes to their positions in the company. C M Bidwell & Associates Ltd. bought a new position in shares of Costco Wholesale in the second quarter valued at approximately $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of Costco Wholesale in the 4th quarter worth approximately $27,000. Burk Holdings LLC bought a new stake in Costco Wholesale during the 2nd quarter worth approximately $30,000. Manning & Napier Advisors LLC bought a new stake in Costco Wholesale during the 2nd quarter worth approximately $30,000. Finally, Mcguire Capital Advisors Inc. acquired a new stake in Costco Wholesale during the 4th quarter valued at $28,000. Institutional investors and hedge funds own 68.48% of the company’s stock.

About Costco Wholesale

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.