Costco Wholesale (COST) Sets New 1-Year High Following Better-Than-Expected Earnings
Costco Wholesale Co. (NASDAQ:COST) reached a new 52-week high on Friday following a stronger than expected earnings report. The stock traded as high as $193.23 and last traded at $193.20, with a volume of 5180668 shares traded. The stock had previously closed at $186.53.
The retailer reported $1.36 EPS for the quarter, beating analysts’ consensus estimates of $1.35 by $0.01. Costco Wholesale had a return on equity of 23.41% and a net margin of 2.09%. The firm had revenue of $31.81 billion for the quarter, compared to analyst estimates of $31.01 billion. During the same period in the prior year, the firm posted $1.24 EPS. The company’s revenue for the quarter was up 13.2% on a year-over-year basis.
The company also recently disclosed a quarterly dividend, which was paid on Friday, December 1st. Shareholders of record on Friday, November 17th were issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 1.04%. The ex-dividend date of this dividend was Thursday, November 16th. Costco Wholesale’s dividend payout ratio is 31.80%.
A number of research analysts have commented on the company. Susquehanna Bancshares upped their price objective on Costco Wholesale from $205.00 to $215.00 and gave the company a “positive” rating in a report on Friday. Oppenheimer reaffirmed a “buy” rating on shares of Costco Wholesale in a report on Friday. Morgan Stanley set a $175.00 price objective on Costco Wholesale and gave the company a “hold” rating in a report on Friday. Cowen set a $214.00 price objective on Costco Wholesale and gave the company a “buy” rating in a report on Friday. Finally, Stifel Nicolaus reaffirmed a “buy” rating and issued a $200.00 price objective (up from $185.00) on shares of Costco Wholesale in a report on Friday. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and seventeen have given a buy rating to the stock. The stock has a consensus rating of “Buy” and an average price target of $184.20.
In related news, Director Richard M. Libenson sold 2,350 shares of the company’s stock in a transaction on Tuesday, October 24th. The stock was sold at an average price of $162.00, for a total transaction of $380,700.00. Following the completion of the sale, the director now directly owns 4,109 shares in the company, valued at approximately $665,658. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director John W. Meisenbach sold 1,000 shares of the stock in a transaction dated Monday, October 2nd. The shares were sold at an average price of $164.92, for a total value of $164,920.00. Following the completion of the transaction, the director now owns 6,974 shares of the company’s stock, valued at $1,150,152.08. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 32,842 shares of company stock valued at $5,520,848. 0.74% of the stock is owned by corporate insiders.
A number of institutional investors have recently bought and sold shares of COST. Janus Henderson Group PLC raised its position in Costco Wholesale by 3,005.9% in the second quarter. Janus Henderson Group PLC now owns 4,180,770 shares of the retailer’s stock valued at $668,630,000 after purchasing an additional 4,046,164 shares during the last quarter. Harbour Capital Advisors LLC raised its position in Costco Wholesale by 15,937.3% in the second quarter. Harbour Capital Advisors LLC now owns 1,448,646 shares of the retailer’s stock valued at $9,058,000 after purchasing an additional 1,439,613 shares during the last quarter. Capital World Investors raised its position in Costco Wholesale by 6.0% in the second quarter. Capital World Investors now owns 17,777,162 shares of the retailer’s stock valued at $2,843,102,000 after purchasing an additional 1,007,720 shares during the last quarter. Vanguard Group Inc. raised its position in Costco Wholesale by 2.9% in the second quarter. Vanguard Group Inc. now owns 33,640,766 shares of the retailer’s stock valued at $5,380,168,000 after purchasing an additional 937,121 shares during the last quarter. Finally, Bank of New York Mellon Corp raised its position in Costco Wholesale by 14.4% in the third quarter. Bank of New York Mellon Corp now owns 6,805,874 shares of the retailer’s stock valued at $1,118,138,000 after purchasing an additional 858,969 shares during the last quarter. Hedge funds and other institutional investors own 71.49% of the company’s stock.
The company has a market cap of $81,511.67, a PE ratio of 31.04, a P/E/G ratio of 3.02 and a beta of 0.98. The company has a current ratio of 0.99, a quick ratio of 0.43 and a debt-to-equity ratio of 0.59.
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Costco Wholesale Company Profile
Costco Wholesale Corporation is engaged in the operation of membership warehouses in the United States and Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Australia, Spain, and through its subsidiaries in Taiwan and Korea. As of August 28, 2016, the Company operated 715 warehouses across the world.
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