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

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

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on COST. Sanford C. Bernstein upped their price target on Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an “outperform” rating in a report on Friday, May 29th. The Goldman Sachs Group lifted their price objective on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a report on Friday, May 29th. JPMorgan Chase & Co. decreased their target price on Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating on the stock in a research report on Thursday, July 9th. BTIG Research reiterated a “buy” rating and set a $1,125.00 target price on shares of Costco Wholesale in a research report on Friday, May 29th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $1,120.00 target price on shares of Costco Wholesale in a report on Thursday, August 6th. Twenty-two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $1,059.53.

Costco Wholesale Stock Performance

The stock has a market cap of $425.75 billion, a price-to-earnings ratio of 48.29, a price-to-earnings-growth ratio of 4.62 and a beta of 0.87. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The stock’s 50-day moving average is $946.44 and its 200-day moving average is $980.87.

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

Costco Wholesale Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were paid a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale’s dividend payout ratio is presently 29.58%.

Insider Buying and Selling

In related news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director directly owned 4,779 shares in the company, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of COST. HighTower Advisors LLC lifted its holdings in shares of Costco Wholesale by 3.1% during the 2nd quarter. HighTower Advisors LLC now owns 448,285 shares of the retailer’s stock worth $419,357,000 after acquiring an additional 13,371 shares during the period. Groupe la Francaise increased its position in Costco Wholesale by 18.5% during the second quarter. Groupe la Francaise now owns 53,335 shares of the retailer’s stock worth $49,618,000 after purchasing an additional 8,338 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Costco Wholesale during the second quarter worth approximately $58,848,000. Financial Insights Inc. raised its stake in Costco Wholesale by 1.1% during the second quarter. Financial Insights Inc. now owns 2,632 shares of the retailer’s stock worth $2,462,000 after purchasing an additional 29 shares during the period. Finally, Vancity Investment Management Ltd raised its stake in Costco Wholesale by 2.1% during the second quarter. Vancity Investment Management Ltd now owns 18,662 shares of the retailer’s stock worth $17,458,000 after purchasing an additional 384 shares during the period. Institutional investors and hedge funds own 68.48% of the company’s stock.

Costco Wholesale Company Profile

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.