Costco Wholesale (NASDAQ:COST) Shares Up 3% – Time to Buy?

Costco Wholesale Corporation (NASDAQ:COST)’s stock price rose 3% on Monday . The company traded as high as $970.32 and last traded at $968.36. Approximately 2,348,131 shares changed hands during mid-day trading, a decline of 14% from the average daily volume of 2,719,024 shares. The stock had previously closed at $940.25.

Analyst Upgrades and Downgrades

COST has been the subject of a number of recent research reports. DA Davidson reissued a “neutral” rating and set a $1,000.00 price target on shares of Costco Wholesale in a research report on Thursday, December 4th. Telsey Advisory Group reiterated an “outperform” rating and set a $1,100.00 target price on shares of Costco Wholesale in a report on Monday. Sanford C. Bernstein boosted their price target on Costco Wholesale from $1,134.00 to $1,146.00 and gave the stock an “outperform” rating in a research report on Friday, December 12th. Wells Fargo & Company reduced their price objective on Costco Wholesale from $1,000.00 to $900.00 and set an “equal weight” rating for the company in a research report on Friday, December 19th. Finally, BMO Capital Markets reiterated an “outperform” rating on shares of Costco Wholesale in a research note on Friday, December 12th. Twenty-one investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Costco Wholesale has a consensus rating of “Moderate Buy” and an average target price of $996.00.

Costco Wholesale Trading Up 3.0%

The stock has a fifty day simple moving average of $906.50 and a 200 day simple moving average of $929.17. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.53 and a current ratio of 1.04. The firm has a market cap of $429.83 billion, a P/E ratio of 51.87, a price-to-earnings-growth ratio of 5.62 and a beta of 1.01.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings results on Thursday, December 11th. The retailer reported $4.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.27 by $0.07. Costco Wholesale had a return on equity of 29.35% and a net margin of 2.96%.The firm had revenue of $67.31 billion for the quarter, compared to the consensus estimate of $67.03 billion. During the same period in the prior year, the company posted $4.04 earnings per share. The company’s quarterly revenue was up 8.3% on a year-over-year basis. On average, research analysts expect that Costco Wholesale Corporation will post 18.03 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 13th. Stockholders of record on Friday, January 30th will be issued a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Friday, January 30th. Costco Wholesale’s payout ratio is presently 27.85%.

Insider Buying and Selling

In related news, EVP Javier Polit sold 558 shares of Costco Wholesale stock in a transaction on Tuesday, December 30th. The stock was sold at an average price of $862.89, for a total value of $481,492.62. Following the completion of the sale, the executive vice president owned 10,190 shares of the company’s stock, valued at $8,792,849.10. The trade was a 5.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Teresa A. Jones sold 850 shares of the company’s stock in a transaction on Wednesday, January 21st. The shares were sold at an average price of $986.26, for a total value of $838,321.00. Following the sale, the executive vice president owned 4,228 shares of the company’s stock, valued at approximately $4,169,907.28. This trade represents a 16.74% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 9,315 shares of company stock valued at $8,549,409 in the last ninety days. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

Several hedge funds and other institutional investors have recently made changes to their positions in COST. Brighton Jones LLC lifted its position in Costco Wholesale by 12.3% during the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer’s stock valued at $18,165,000 after purchasing an additional 2,172 shares in the last quarter. Revolve Wealth Partners LLC raised its stake in shares of Costco Wholesale by 13.1% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer’s stock worth $1,029,000 after buying an additional 130 shares during the period. Drucker Wealth 3.0 LLC lifted its position in shares of Costco Wholesale by 45.0% during the 2nd quarter. Drucker Wealth 3.0 LLC now owns 657 shares of the retailer’s stock valued at $645,000 after buying an additional 204 shares in the last quarter. Sivia Capital Partners LLC lifted its position in shares of Costco Wholesale by 4.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer’s stock valued at $3,814,000 after buying an additional 165 shares in the last quarter. Finally, Pinnacle Wealth Planning Services Inc. grew its stake in shares of Costco Wholesale by 1.1% during the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer’s stock valued at $2,089,000 after acquiring an additional 23 shares during the period. Hedge funds and other institutional investors 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.