Costco Wholesale (NASDAQ:COST) Trading Up 1.5% – Here’s What Happened

Costco Wholesale Corporation (NASDAQ:COST) shot up 1.5% on Wednesday . The company traded as high as $985.26 and last traded at $983.37. 1,688,092 shares traded hands during mid-day trading, a decline of 22% from the average session volume of 2,174,093 shares. The stock had previously closed at $968.59.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Jim Cramer said he would buy Costco stock at current levels, adding a high-profile bullish catalyst that may encourage dip-buying. Jim Cramer on Costco: “I Think That You Buy Some Here”
• Positive Sentiment: Costco’s digital sales reportedly jumped 21% and gas volumes hit a record, reinforcing the company’s strong traffic and omnichannel demand. Costco’s Digital Sales Jumped 21% and Gas Volumes Hit a Record. So Why Did COST Stock Drop 5%?
• Positive Sentiment: Costco’s May net sales rose 14.5% year over year, supporting the view that the business is still growing at a healthy pace. Is Costco (COST) One of Billionaire Ken Fisher’s Top 11 Dividend Stock Picks?

Analysts Set New Price Targets

A number of research firms recently weighed in on COST. Bank of America upped their target price on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a “buy” rating in a research note on Friday, May 29th. Truist Financial upped their target price on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a “hold” rating in a research note on Friday, May 29th. Raymond James Financial upped their target price on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an “outperform” rating in a research note on Friday, March 6th. Telsey Advisory Group upped their target price on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an “outperform” rating in a research note on Thursday, April 9th. Finally, Weiss Ratings raised shares of Costco Wholesale from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, June 4th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $1,060.41.

Costco Wholesale Price Performance

The stock’s 50-day moving average price is $1,006.30 and its 200-day moving average price is $965.46. The company has a market capitalization of $436.10 billion, a price-to-earnings ratio of 49.47, a price-to-earnings-growth ratio of 4.72 and a beta of 0.88. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST) last announced its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The company had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same quarter in the previous year, the company posted $4.28 earnings per share. Equities research analysts anticipate that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were given a dividend of $1.47 per share. The ex-dividend date was Friday, May 1st. This is a positive change from Costco Wholesale’s previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is currently 29.58%.

Hedge Funds Weigh In On Costco Wholesale

A number of large investors have recently modified their holdings of COST. Brighton Jones LLC lifted its position in shares of Costco Wholesale by 12.3% during the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer’s stock worth $18,165,000 after purchasing an additional 2,172 shares in the last quarter. Revolve Wealth Partners LLC raised its stake in shares of Costco Wholesale by 13.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer’s stock worth $1,029,000 after buying an additional 130 shares during the last quarter. Sivia Capital Partners LLC raised its stake in shares of Costco Wholesale by 4.5% during the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer’s stock worth $3,814,000 after buying an additional 165 shares during the last quarter. Pinnacle Wealth Planning Services Inc. raised its stake in shares of Costco Wholesale by 1.1% during the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer’s stock worth $2,089,000 after buying an additional 23 shares during the last quarter. Finally, Schnieders Capital Management LLC. raised its stake in shares of Costco Wholesale by 2.2% during the second quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer’s stock worth $8,416,000 after buying an additional 182 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.