Costco Wholesale Corp. (COST) Stock Price Up 4.2% on Strong Earnings
Costco Wholesale Corp. (NASDAQ:COST) shares rose 4.2% on Friday following a better than expected earnings announcement. The stock traded as high as $154.85 and last traded at $153.64, with a volume of 4,688,996 shares traded. The stock had previously closed at $147.49.
The retailer reported $1.77 earnings per share for the quarter, beating analysts’ consensus estimates of $1.73 by $0.04. The firm earned $35.73 billion during the quarter. Costco Wholesale Corp. had a return on equity of 20.70% and a net margin of 1.98%. The business’s revenue was up 2.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.73 earnings per share.
COST has been the subject of a number of recent analyst reports. Piper Jaffray Cos. reiterated an “overweight” rating and set a $171.00 target price on shares of Costco Wholesale Corp. in a research report on Wednesday, July 6th. Zacks Investment Research upgraded Costco Wholesale Corp. from a “hold” rating to a “buy” rating and set a $184.00 target price for the company in a research report on Tuesday, August 30th. Jefferies Group reiterated a “hold” rating on shares of Costco Wholesale Corp. in a research report on Monday, September 12th. Nomura reissued a “buy” rating and set a $185.00 price target on shares of Costco Wholesale Corp. in a report on Thursday, August 25th. Finally, Argus reissued a “buy” rating and set a $175.00 price target on shares of Costco Wholesale Corp. in a report on Tuesday, July 5th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and nineteen have given a buy rating to the company’s stock. Costco Wholesale Corp. presently has a consensus rating of “Buy” and a consensus target price of $172.74.
In related news, CFO Richard A. Galanti sold 2,400 shares of the stock in a transaction that occurred on Monday, July 11th. The stock was sold at an average price of $167.08, for a total transaction of $400,992.00. Following the completion of the sale, the chief financial officer now directly owns 30,536 shares of the company’s stock, valued at $5,101,954.88. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP John D. Mckay sold 7,500 shares of the stock in a transaction that occurred on Monday, July 11th. The shares were sold at an average price of $166.58, for a total value of $1,249,350.00. Following the sale, the executive vice president now directly owns 58,535 shares of the company’s stock, valued at $9,750,760.30. The disclosure for this sale can be found here. 0.78% of the stock is owned by insiders.
Hedge funds have recently modified their holdings of the stock. FCM Investments TX acquired a new stake in shares of Costco Wholesale Corp. during the second quarter worth approximately $133,000. Zions Bancorporation increased its stake in shares of Costco Wholesale Corp. by 88.2% in the first quarter. Zions Bancorporation now owns 890 shares of the retailer’s stock worth $139,000 after buying an additional 417 shares during the last quarter. Global X Management Co. LLC increased its stake in shares of Costco Wholesale Corp. by 276.6% in the second quarter. Global X Management Co. LLC now owns 983 shares of the retailer’s stock worth $154,000 after buying an additional 722 shares during the last quarter. PineBridge Investments L.P. increased its stake in shares of Costco Wholesale Corp. by 11.5% in the second quarter. PineBridge Investments L.P. now owns 1,078 shares of the retailer’s stock worth $169,000 after buying an additional 111 shares during the last quarter. Finally, Signaturefd LLC increased its stake in shares of Costco Wholesale Corp. by 81.4% in the second quarter. Signaturefd LLC now owns 1,094 shares of the retailer’s stock worth $172,000 after buying an additional 491 shares during the last quarter. 73.02% of the stock is owned by institutional investors.
The company’s 50 day moving average price is $158.09 and its 200 day moving average price is $156.31. The firm has a market capitalization of $66.81 billion, a P/E ratio of 28.82 and a beta of 0.59.
About Costco Wholesale Corp.
Costco Wholesale Corporation (Costco) is engaged in the operation of membership warehouses in the United States (U.S.) and Puerto Rico, Canada, United Kingdom (U.K.), Mexico, Japan, Australia, Spain, and through majority-owned subsidiaries in Taiwan and Korea. The Company operated 663 membership warehouses and an average warehouse is approximately 144,000 square feet.
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