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

Costco Wholesale Co. (NASDAQ:COST) saw its share price increase by 0.8% during mid-day trading on Thursday. The stock reached a peak of $940.76 before closing at $937.44. During this trading session, around 384,957 shares were exchanged, which is a significant decrease of 79% compared to the average daily volume of 1,818,456 shares. Previously, the stock had closed at $929.75.

Analyst Ratings and Price Targets

Several analysts have provided updates on Costco’s stock. Oppenheimer maintained an "outperform" rating for COST shares, raising their price target to $1,075.00 from $980.00 in a recent report. Morgan Stanley also boosted their price target from $950.00 to $1,150.00 while maintaining an "overweight" rating. Additionally, Raymond James increased their target price to $1,030.00 from $990.00. Citigroup revised its target to $1,060.00 from $800.00, assigning a "neutral" rating. Moreover, Evercore ISI adjusted their target price to $1,070.00 from $1,050.00, keeping an "outperform" rating. Currently, a total of nine analysts have rated the stock as a hold, while twenty-one others have given it a buy rating. According to MarketBeat, Costco's current consensus rating is "Moderate Buy," with a target price estimate of $1,029.00.

Costco's Current Position

As for Costco's financial health, the company has a current ratio of 0.98 and a quick ratio of 0.43. Its debt-to-equity ratio stands at 0.23, with a market capitalization of $417.75 billion. The stock boasts a price-to-earnings ratio of 55.26 and a PEG ratio of 6.15. Currently, Costco's 50-day moving average price is $987.96, while its 200-day moving average price is $946.00.

Quarterly Earnings Report

Costco recently announced its quarterly earnings on March 6th, reporting earnings per share (EPS) of $4.02, which fell short of the consensus estimate of $4.09 by $0.07. The company generated revenue of $63.72 billion, surpassing analyst expectations which were set at $63.02 billion. Costco has a return on equity of 32.31% and a net profit margin of 2.93%. Analysts project that Costco will report an average EPS of 18.03 for the current year.

Dividend Announcement

In a significant update, Costco declared a quarterly dividend that was paid out on February 21st to shareholders recorded as of February 7th. The dividend declared was $1.16 per share, amounting to an annualized dividend of $4.64, yielding 0.49%. The dividend payout ratio currently stands at 27.09%.

Insider Transactions

Recent insider activity shows that EVP Claudine Adamo sold 900 shares of the stock in a transaction reported on March 24th, at an average price of $922.56, totaling approximately $830,304. Meanwhile, CEO Roland Michael Vachris sold 3,600 shares on March 11th for $931.00 per share, resulting in a total sale of $3,351,600. Post-transaction, he owns 41,077 shares, valued around $38,242,687, marking an 8.06% decrease in ownership. Currently, just 0.18% of the stock is held by corporate insiders.

Institutional Investments

In recent trading activities, large investors have been busy buying and selling shares. For instance, Investment Management Corp VA ADV acquired a new stake in Costco worth around $25,000 in Q4, while RPg Family Wealth Advisory LLC secured a position in the third quarter worth approximately $29,000. Synergy Investment Management LLC also bought shares worth about $31,000 in Q4. NewSquare Capital LLC expanded its holdings by 250% in the fourth quarter, now owning 35 shares valued at $32,000 after purchasing an additional 25 shares. The stock is primarily owned by institutional investors and hedge funds, making up 68.48% of total ownership.

About Costco Wholesale

Costco Wholesale Corporation, along with its subsidiaries, manages membership warehouses in several countries including the United States, Canada, Mexico, and Japan. The company offers a wide range of both branded and private-label products across various merchandise categories.

Costco, Stocks, Investing