Costco Wholesale (NASDAQ:COST) Stock Price Up 2.9% After Dividend Announcement

Costco Wholesale Corporation (NASDAQ:COST)’s stock price rose 2.9% during mid-day trading on Wednesday following a dividend announcement from the company. The stock traded as high as $982.64 and last traded at $982.00. 3,040,031 shares were traded during mid-day trading, an increase of 39% from the average session volume of 2,189,120 shares. The stock had previously closed at $954.63.

The newly announced dividend which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be issued a dividend of $1.47 per share. The ex-dividend date is Friday, October 30th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s payout ratio is currently 28.32%.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the company. Mizuho decreased their price objective on Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating for the company in a report on Friday, September 25th. Oppenheimer reiterated an “outperform” rating and set a $1,160.00 price target on shares of Costco Wholesale in a report on Wednesday, September 16th. Deutsche Bank Aktiengesellschaft lowered their price target on Costco Wholesale from $1,091.00 to $1,079.00 and set a “buy” rating for the company in a research report on Monday, September 28th. HSBC raised Costco Wholesale to a “buy” rating in a research report on Friday, September 25th. Finally, Argus restated a “buy” rating and set a $1,230.00 price objective on shares of Costco Wholesale in a research note on Monday, September 28th. Twenty-four equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Costco Wholesale has an average rating of “Moderate Buy” and an average price target of $1,087.40.

Costco Wholesale Stock Performance

The company has a market capitalization of $439.56 billion, a P/E ratio of 47.77, a P/E/G ratio of 4.20 and a beta of 0.88. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. The company’s fifty day moving average is $932.33 and its 200 day moving average is $963.09.

Costco Wholesale (NASDAQ:COST) last posted its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.54 by $0.21. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The firm had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. During the same quarter in the prior year, the business posted $5.87 earnings per share. The business’s quarterly revenue was up 11.1% on a year-over-year basis. As a group, equities analysts anticipate that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

More Costco Wholesale News

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

• Positive Sentiment: Sales momentum strengthened: Costco reported September net sales of approximately $30.02 billion, up 13% year over year. Digitally enabled sales increased 19%, while comparable sales accelerated to 7.6%, supporting expectations for continued earnings growth. September Sales Growth at Costco
• Positive Sentiment: Analyst target raised: Tigress Financial analyst Ivan Feinseth raised his Costco price target from $1,065 to $1,250 and maintained a Buy rating, citing membership loyalty, digital expansion and resilient consumer demand. Analyst Raises Costco Price Target to $1,250
• Positive Sentiment: Technical backdrop improved: The stock has reclaimed its 50-day and 200-day moving averages, adding momentum after the recent sales update. Costco Fundamental and Technical Signals
• Neutral Sentiment: Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. The payout is supportive but represents a relatively low yield of about 0.6%. Costco Quarterly Dividend Announcement
• Negative Sentiment: Valuation remains a risk: Costco trades at a premium earnings multiple, leaving limited room for execution disappointments. Margin pressure and possible additional Federal Reserve rate hikes could also weigh on the valuation.
• Negative Sentiment: An executive sold 1,100 shares worth approximately $1.05 million. The transaction is relatively small and may reflect personal financial planning, but it is a minor negative sentiment signal. Costco Executive Stock Sale

Insiders Place Their Bets

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the sale, the executive vice president owned 7,134 shares in the company, valued at approximately $6,534,244.62. This trade represents a 23.57% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of Costco Wholesale stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the sale, the executive vice president owned 3,094 shares in the company, valued at approximately $2,964,701.74. This trade represents a 26.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

A number of hedge funds have recently modified their holdings of COST. Wealth Effects LLC boosted its position in shares of Costco Wholesale by 1.2% during the first quarter. Wealth Effects LLC now owns 874 shares of the retailer’s stock worth $871,000 after purchasing an additional 10 shares in the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. raised its position in Costco Wholesale by 1.8% in the 1st quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer’s stock valued at $549,000 after buying an additional 10 shares during the last quarter. First National Bank of Hutchinson lifted its position in shares of Costco Wholesale by 0.9% in the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer’s stock worth $1,094,000 after purchasing an additional 10 shares in the last quarter. Frisch Financial Group Inc. boosted its stake in shares of Costco Wholesale by 1.0% during the 1st quarter. Frisch Financial Group Inc. now owns 1,049 shares of the retailer’s stock worth $1,045,000 after buying an additional 10 shares during the last quarter. Finally, Main Street Group LTD grew its stake in Costco Wholesale by 0.8% in the first quarter. Main Street Group LTD now owns 1,226 shares of the retailer’s stock valued at $1,221,000 after purchasing an additional 10 shares in the last quarter. Institutional investors own 68.48% of the company’s stock.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.