Costco Wholesale (NASDAQ:COST) Stock Price Up 2.7% – Here’s Why

Costco Wholesale Corporation (NASDAQ:COST)’s share price rose 2.7% on Wednesday. The company traded as high as $1,053.66 and last traded at $1,046.47. Approximately 2,565,082 shares were traded during trading, an increase of 17% from the average daily volume of 2,196,776 shares. The stock had previously closed at $1,019.26.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco’s latest reported quarter topped analyst estimates: earnings per share were $6.75 versus a $6.54 consensus, while revenue grew 11.1% year over year. That performance reinforces the growth case behind the stock. Costco Wholesale stock stays near highs as growth meets rich valuation
• Positive Sentiment: A proposed new Costco in Thurston County would add a location and includes plans for roundabouts and a 2.5-acre forest. The project points to continued expansion, though the article does not specify timing or financial impact. Plan for new Costco in Thurston County includes new roundabouts, 2.5-acre forest
• Neutral Sentiment: Commentary presents Costco as a potential long-term blue-chip holding, citing its loyal membership base and defensive reputation. Those qualities may support the business in uncertain markets, but the articles offer no new company results or near-term catalyst. Costco’s Capital Preservation Function Will Be on Display Over the Next Few Weeks
• Negative Sentiment: Several reports warn that COST’s valuation is demanding after a strong multiyear run and with shares above $1,000. A high multiple leaves less room for execution missteps; the next few weeks may test whether earnings growth and Costco’s defensive appeal justify the premium. Costco (COST) Stock Looks Rich Despite Its Healthcare Push

Wall Street Analyst Weigh In

Several analysts have recently issued reports on COST shares. HSBC raised shares of Costco Wholesale to a “buy” rating in a research note on Friday, September 25th. Argus reaffirmed a “buy” rating and set a $1,230.00 price target on shares of Costco Wholesale in a research note on Monday, September 28th. TD Cowen started coverage on shares of Costco Wholesale in a research report on Friday, October 30th. They set a “strong-buy” rating for the company. Jefferies Financial Group dropped their price target on Costco Wholesale from $1,130.00 to $1,100.00 in a research report on Friday, September 25th. Finally, Mizuho cut their price target on Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating on the stock in a report on Friday, September 25th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $1,086.19.

Costco Wholesale Stock Up 2.7%

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 firm has a market capitalization of $463.77 billion, a price-to-earnings ratio of 50.41, a PEG ratio of 4.45 and a beta of 0.85. The stock has a fifty day moving average of $946.12 and a 200-day moving average of $971.09.

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

Costco Wholesale Dividend Announcement

The firm also recently declared a quarterly 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 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s payout ratio is currently 28.32%.

Insider Buying and Selling at Costco Wholesale

In related news, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction dated 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 directly owned 7,134 shares of the company’s stock, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the firm’s stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total value of $1,054,031.00. Following the sale, the executive vice president owned 3,094 shares of the company’s stock, valued at $2,964,701.74. The trade was a 26.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Costco Wholesale

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in COST. State Street Corp grew its holdings in Costco Wholesale by 31.7% in the second quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock valued at $22,359,224,000 after purchasing an additional 5,749,362 shares during the last quarter. Bank of America Corp DE lifted its stake in shares of Costco Wholesale by 11.5% during the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock valued at $7,488,203,000 after buying an additional 773,651 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Costco Wholesale by 5.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,068,312 shares of the retailer’s stock worth $2,870,314,000 after purchasing an additional 160,893 shares during the last quarter. Amundi grew its holdings in Costco Wholesale by 11.1% in the 1st quarter. Amundi now owns 2,839,016 shares of the retailer’s stock valued at $2,828,881,000 after buying an additional 283,360 shares during the period. Finally, Legal & General Group Plc acquired a new position in Costco Wholesale during the second quarter worth approximately $2,362,188,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.