Costco Wholesale (NASDAQ:COST) Trading 1.4% Higher – Still a Buy?

Shares of Costco Wholesale Co. (NASDAQ:COST) were up 1.4% during mid-day trading on Wednesday . The company traded as high as $1,007.56 and last traded at $1,007.39. Approximately 458,535 shares traded hands during trading, a decline of 76% from the average daily volume of 1,916,825 shares. The stock had previously closed at $993.40.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. Melius Research initiated coverage on Costco Wholesale in a research note on Monday, September 23rd. They set a “hold” rating and a $950.00 target price for the company. Truist Financial boosted their price target on shares of Costco Wholesale from $909.00 to $935.00 and gave the stock a “hold” rating in a research report on Friday. Raymond James boosted their price objective on Costco Wholesale from $990.00 to $1,030.00 and gave the stock an “overweight” rating in a research note on Thursday. Sanford C. Bernstein assumed coverage on shares of Costco Wholesale in a report on Tuesday, October 22nd. They issued an “outperform” rating and a $1,016.00 target price on the stock. Finally, Tigress Financial reiterated a “buy” rating and set a $1,065.00 price target on shares of Costco Wholesale in a report on Thursday, October 17th. Ten research analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the company’s stock. According to MarketBeat, Costco Wholesale has a consensus rating of “Moderate Buy” and an average target price of $988.46.

Costco Wholesale Price Performance

The stock’s 50-day moving average is $924.72 and its 200 day moving average is $883.45. The stock has a market capitalization of $438.35 billion, a PE ratio of 59.93, a P/E/G ratio of 6.05 and a beta of 0.82. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.44 and a current ratio of 0.97.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings results on Thursday, September 26th. The retailer reported $5.15 EPS for the quarter, beating the consensus estimate of $5.05 by $0.10. Costco Wholesale had a net margin of 2.90% and a return on equity of 31.05%. The firm had revenue of $79.70 billion during the quarter, compared to the consensus estimate of $79.91 billion. During the same quarter in the prior year, the firm earned $4.86 EPS. Costco Wholesale’s revenue for the quarter was up 1.0% on a year-over-year basis. As a group, equities analysts expect that Costco Wholesale Co. will post 17.77 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 15th. Shareholders of record on Friday, November 1st were given a dividend of $1.16 per share. The ex-dividend date of this dividend was Friday, November 1st. This represents a $4.64 dividend on an annualized basis and a yield of 0.47%. Costco Wholesale’s payout ratio is 28.00%.

Insider Activity

In related news, EVP Russell D. Miller sold 4,400 shares of the company’s stock in a transaction that occurred on Friday, October 11th. The stock was sold at an average price of $891.15, for a total value of $3,921,060.00. Following the sale, the executive vice president now owns 10,202 shares of the company’s stock, valued at approximately $9,091,512.30. This represents a 30.13 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Pierre Riel sold 2,000 shares of Costco Wholesale stock in a transaction dated Tuesday, October 15th. The stock was sold at an average price of $896.71, for a total transaction of $1,793,420.00. Following the sale, the executive vice president now owns 10,210 shares of the company’s stock, valued at approximately $9,155,409.10. This trade represents a 16.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 11,016 shares of company stock valued at $9,826,115. Company insiders own 0.18% of the company’s stock.

Institutional Trading of Costco Wholesale

A number of hedge funds have recently added to or reduced their stakes in COST. Legacy Wealth Management LLC MS grew its stake in shares of Costco Wholesale by 2.7% during the 3rd quarter. Legacy Wealth Management LLC MS now owns 4,033 shares of the retailer’s stock valued at $3,575,000 after buying an additional 106 shares during the period. DGS Capital Management LLC increased its stake in Costco Wholesale by 12.8% during the third quarter. DGS Capital Management LLC now owns 756 shares of the retailer’s stock worth $671,000 after acquiring an additional 86 shares during the last quarter. FFG Partners LLC raised its holdings in shares of Costco Wholesale by 0.5% in the 3rd quarter. FFG Partners LLC now owns 23,814 shares of the retailer’s stock worth $21,112,000 after purchasing an additional 129 shares during the period. Oddo BHF Asset Management Sas acquired a new position in shares of Costco Wholesale in the 3rd quarter valued at about $9,539,000. Finally, Garde Capital Inc. grew its holdings in shares of Costco Wholesale by 4.3% during the 3rd quarter. Garde Capital Inc. now owns 3,954 shares of the retailer’s stock worth $3,506,000 after purchasing an additional 162 shares during the period. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale Company Profile

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.