Costco Wholesale (NASDAQ:COST) Shares Up 1.6% – Still a Buy?

Costco Wholesale Corporation (NASDAQ:COST) shares traded up 1.6% during trading on Monday . The stock traded as high as $921.99 and last traded at $918.91. 1,971,941 shares changed hands during mid-day trading, a decline of 9% from the average daily volume of 2,170,796 shares. The stock had previously closed at $904.77.

Trending Headlines about Costco Wholesale

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Dividend increase reinforces shareholder returns. Costco raised its dividend by 13%, providing a positive signal about cash generation and financial confidence, although the company’s yield remains modest and special dividends have historically been an important part of its payout strategy. Costco Hiked Its Dividend by 13%
• Positive Sentiment: Fourth-quarter results could provide the next major catalyst. Costco is scheduled to report fiscal fourth-quarter earnings on Sept. 24. Investors will likely focus on comparable sales, membership trends, renewal rates and evidence that consumers remain resilient despite elevated prices. Costco Earnings Preview
• Positive Sentiment: Long-term operating advantages remain supportive. Articles highlight Costco’s scale, limited product assortment and purchasing power, which help it maintain a cost advantage and support resilient same-store sales. Costco Long-Term Investment Case
• Neutral Sentiment: Motor-oil availability is drawing attention. Costco reportedly raised the price of a 10-quart case of Kirkland Signature full-synthetic oil to $57.99 and imposed purchase limits, apparently reflecting constrained supply. The issue may lift margins on the affected products, but its overall earnings impact is likely limited. Costco Rations Motor Oil
• Negative Sentiment: Rationing and sharp price increases could frustrate members. The motor-oil restrictions evoke past pandemic-era shortages and may create concerns about product availability and the effect of inflation on Costco’s value proposition, even though the shortage appears limited to certain petroleum products. Costco Motor Oil Price Increase
• Negative Sentiment: Valuation leaves less room for disappointment. With a reported P/E ratio above 46, Costco needs continued membership, sales and profit growth to justify its premium multiple. Any weak guidance or margin pressure in the upcoming results could weigh disproportionately on COST.

Analysts Set New Price Targets

COST has been the topic of a number of analyst reports. DA Davidson reissued a “neutral” rating and set a $1,000.00 target price on shares of Costco Wholesale in a report on Thursday, September 3rd. The Goldman Sachs Group raised their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a “buy” rating in a research report on Friday, May 29th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $1,091.00 target price on shares of Costco Wholesale in a report on Friday, September 4th. UBS Group raised their price target on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a report on Wednesday, May 20th. Finally, JPMorgan Chase & Co. reduced their price target on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating for the company in a research report on Thursday, July 9th. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Costco Wholesale has a consensus rating of “Moderate Buy” and an average price target of $1,056.03.

Costco Wholesale Stock Up 1.6%

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 has a market capitalization of $407.52 billion, a PE ratio of 46.22, a PEG ratio of 3.77 and a beta of 0.86. The company has a 50 day moving average price of $940.09 and a 200-day moving average price of $974.42.

Costco Wholesale Dividend Announcement

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

Insider Buying and Selling

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the firm’s stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares in the company, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.10% of the company’s stock.

Hedge Funds Weigh In On Costco Wholesale

A number of hedge funds have recently added to or reduced their stakes in COST. C M Bidwell & Associates Ltd. purchased a new stake in Costco Wholesale during the 2nd quarter valued at $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale in the 4th quarter worth about $27,000. Burk Holdings LLC purchased a new position in Costco Wholesale in the 2nd quarter worth about $30,000. Manning & Napier Advisors LLC bought a new position in Costco Wholesale during the 2nd quarter valued at about $30,000. Finally, Lifetime Wealth Management P.C. purchased a new stake in shares of Costco Wholesale during the 4th quarter valued at about $28,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.