Costco Wholesale (NASDAQ:COST) Trading Up 1.6% – Here’s What Happened

Costco Wholesale Corporation (NASDAQ:COST) was up 1.6% during mid-day trading on Monday . The stock traded as high as $921.99 and last traded at $918.91. 1,971,941 shares were traded during trading, a decline of 9% from the average session volume of 2,170,796 shares. The stock had previously closed at $904.77.

More Costco Wholesale News

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

• Positive Sentiment: Dividend increase reinforces shareholder returns. Costco raised its dividend by 13%, providing a positive signal about cash generation and financial confidence, although the company’s yield remains modest and special dividends have historically been an important part of its payout strategy. Costco Hiked Its Dividend by 13%
• Positive Sentiment: Fourth-quarter results could provide the next major catalyst. Costco is scheduled to report fiscal fourth-quarter earnings on Sept. 24. Investors will likely focus on comparable sales, membership trends, renewal rates and evidence that consumers remain resilient despite elevated prices. Costco Earnings Preview
• Positive Sentiment: Long-term operating advantages remain supportive. Articles highlight Costco’s scale, limited product assortment and purchasing power, which help it maintain a cost advantage and support resilient same-store sales. Costco Long-Term Investment Case
• Neutral Sentiment: Motor-oil availability is drawing attention. Costco reportedly raised the price of a 10-quart case of Kirkland Signature full-synthetic oil to $57.99 and imposed purchase limits, apparently reflecting constrained supply. The issue may lift margins on the affected products, but its overall earnings impact is likely limited. Costco Rations Motor Oil
• Negative Sentiment: Rationing and sharp price increases could frustrate members. The motor-oil restrictions evoke past pandemic-era shortages and may create concerns about product availability and the effect of inflation on Costco’s value proposition, even though the shortage appears limited to certain petroleum products. Costco Motor Oil Price Increase
• Negative Sentiment: Valuation leaves less room for disappointment. With a reported P/E ratio above 46, Costco needs continued membership, sales and profit growth to justify its premium multiple. Any weak guidance or margin pressure in the upcoming results could weigh disproportionately on COST.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on COST shares. Freedom Broker raised shares of Costco Wholesale from a “hold” rating to a “buy” rating and set a $1,030.00 price objective on the stock in a research report on Tuesday, September 8th. Oppenheimer increased their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an “outperform” rating in a report on Tuesday, May 19th. Weiss Ratings cut Costco Wholesale from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 2nd. UBS Group boosted their price target on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a research note on Wednesday, May 20th. Finally, Sanford C. Bernstein set a $1,144.00 price objective on shares of Costco Wholesale in a research note on Friday, September 4th. Twenty-two research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $1,056.03.

Costco Wholesale Stock Performance

The company’s 50 day moving average price is $940.09 and its 200-day moving average price is $974.42. The stock has a market cap of $407.52 billion, a P/E ratio of 46.22, a price-to-earnings-growth ratio of 3.77 and a beta of 0.86. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07.

Costco Wholesale Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were given a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is currently 29.58%.

Insider Buying and Selling at Costco Wholesale

In other news, Director Kenneth Denman sold 885 shares of the company’s stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the transaction, the director directly owned 4,779 shares of the company’s stock, valued at $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Costco Wholesale

A number of hedge funds have recently made changes to their positions in COST. California State Teachers Retirement System boosted its stake in Costco Wholesale by 91,744.7% in the second quarter. California State Teachers Retirement System now owns 631,103,610 shares of the retailer’s stock valued at $590,378,494,000 after acquiring an additional 630,416,468 shares during the last quarter. Geode Capital Management LLC lifted its stake in Costco Wholesale by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer’s stock valued at $8,919,573,000 after purchasing an additional 26,690 shares during the last quarter. Bank of America Corp DE grew its holdings in 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 purchasing an additional 773,651 shares during the period. Diamant Asset Management Inc. grew its stake in shares of Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after acquiring an additional 6,720,130 shares during the period. Finally, Corient Private Wealth LLC lifted its holdings in Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock valued at $5,282,182,000 after purchasing an additional 5,472,968 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors.

About Costco Wholesale

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.