Costco Wholesale (NASDAQ:COST) Stock Price Up 0.8% - Here's Why

Costco Wholesale Co. (NASDAQ:COST) saw its share price rise by 0.8% during midday trading on Thursday. The stock reached a high of $940.76 before last trading at $937.44. During this trading session, approximately 384,957 shares were exchanged, which represents a notable decline of 79% from the average daily volume of 1,818,456 shares. Prior to this, the stock had closed at $929.75.

Recent Analyst Ratings

Several analysts have recently evaluated COST shares. For example, Oppenheimer reaffirmed an "outperform" rating for Costco with a price target increase from $980.00 to $1,075.00 as of December 10. Similarly, Morgan Stanley elevated its price target from $950.00 to $1,150.00, giving Costco an "overweight" rating on December 13. Raymond James also raised its target from $990.00 to $1,030.00, maintaining an "overweight" rating. Citigroup increased its target from $800.00 to $1,060.00, rating the stock as "neutral" as of December 18. Furthermore, Evercore ISI adjusted its target price to $1,070.00 with an "outperform" rating on March 11. Currently, nine analysts have given the stock a hold rating, while twenty-one recommend it as a buy. MarketBeat data indicates a consensus rating of "Moderate Buy" and an average target price of $1,029.00.

Costco's Financial Metrics and Performance

As of now, Costco holds a current ratio of 0.98, a quick ratio of 0.43, and a debt-to-equity ratio of 0.23. The company boasts a market capitalization of $417.75 billion, with a price-to-earnings ratio of 55.26 and a PEG ratio of 6.15, reflecting its growth potential relative to earnings. The firm also shows a beta of 0.82, indicating stability in its stock price relative to the market. Additionally, Costco has a 50-day moving average price of $987.96 and a 200-day moving average of $946.00.

Quarterly Earnings Report

Costco Wholesale announced its quarterly earnings data on March 6. The retailer reported earnings per share (EPS) of $4.02, which was slightly below the consensus estimate of $4.09, missing by $0.07. Nevertheless, the revenue for the quarter was recorded at $63.72 billion, surpassing analyst expectations of $63.02 billion. The company achieved a return on equity of 32.31% and a net margin of 2.93%. Analysts predict that Costco will post an EPS of 18.03 for the current fiscal year.

Dividend Announcement

Recently, Costco also declared a quarterly dividend that was paid on February 21. Shareholders who were on record as of February 7 received a dividend of $1.16 per share, corresponding to an annualized dividend of $4.64 and a yield of 0.49%. The ex-dividend date for this payment was February 7, and Costco currently has a dividend payout ratio of 27.09%.

Insider Transactions

There have been insider activities involving Costco stock. On March 24, EVP Claudine Adamo sold 900 shares at an average price of $922.56, totaling approximately $830,304. Post-transaction, Adamo holds 6,987 shares valued at around $6,445,926.72, reflecting an 11.41% reduction in ownership. Additionally, on March 11, CEO Roland Michael Vachris sold 3,600 shares at an average price of $931.00, bringing in about $3,351,600. Following this sale, Vachris retains 41,077 shares valued at approximately $38,242,687, which indicates an 8.06% decrease in his shareholding. Currently, 0.18% of the company’s stock is held by insiders.

Institutional Investor Activity

Institutional investors have also shown interest in Costco. For instance, Investment Management Corp VA ADV acquired a new stake in the fourth quarter worth around $25,000. RPg Family Wealth Advisory LLC obtained another new stake valued at about $29,000 in the third quarter. Synergy Investment Management LLC added a new stake in the fourth quarter amounting to roughly $31,000. NewSquare Capital LLC saw a 250.0% increase in their holdings during the same quarter. The total ownership of the stock by institutional investors and hedge funds currently stands at 68.48%.

About Costco Wholesale

Costco Wholesale Corporation operates membership warehouses across various countries, including the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, and more. The company offers a variety of products, including both branded and private-label merchandise.

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