Key Points
- Insider sale: Costco EVP William Richard Wilcox sold 1,100 shares at an average price of $958.21, totaling approximately $1.05 million and reducing his ownership by 26.23%.
- Strong operating results: Costco reported quarterly EPS of $6.75, exceeding estimates of $6.54, while revenue rose 11.1% year over year to $95.72 billion.
- Positive analyst outlook and dividend: Analysts maintain a consensus “Moderate Buy” rating with an average price target of $1,081.79. Costco also declared a quarterly dividend of $1.47 per share, representing a 0.6% yield.
Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) 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 $2,964,701.74. The trade was a 26.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink.
Costco Wholesale Trading Up 2.9%
Costco Wholesale stock opened at $982.00 on Thursday. The firm has a 50-day moving average of $931.75 and a 200-day moving average of $963.13. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. The company has a market cap of $435.15 billion, a price-to-earnings ratio of 47.30, a P/E/G ratio of 4.08 and a beta of 0.88.
Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating the consensus estimate of $6.54 by $0.21. The company had revenue of $95.72 billion during the quarter, compared to analysts' expectations of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. Costco Wholesale's revenue for the quarter was up 11.1% compared to the same quarter last year. During the same quarter last year, the company earned $5.87 EPS. On average, equities analysts expect that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.
Costco Wholesale Dividend Announcement
The business also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be issued a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date is Friday, October 30th. Costco Wholesale's dividend payout ratio is presently 28.32%.
Analyst Ratings Changes
A number of research firms have weighed in on COST. BMO Capital Markets restated an "outperform" rating on shares of Costco Wholesale in a research note on Friday, September 25th. Mizuho dropped their price objective on Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating on the stock in a research note on Friday, September 25th. JPMorgan Chase & Co. cut their price objective on Costco Wholesale from $1,100.00 to $1,015.00 and set an "overweight" rating for the company in a report on Friday, September 25th. Evercore reissued an "outperform" rating on shares of Costco Wholesale in a research note on Tuesday, September 22nd. Finally, Sanford C. Bernstein decreased their target price on shares of Costco Wholesale from $1,144.00 to $1,143.00 and set an "outperform" rating for the company in a research note on Friday, September 25th. Twenty-three research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Costco Wholesale has a consensus rating of "Moderate Buy" and a consensus price target of $1,081.79.
Check Out Our Latest Research Report on Costco Wholesale
Key Costco Wholesale News
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Defensive-sector rotation: Higher inflation prompted investors to move toward companies selling everyday necessities. Costco benefited alongside Walmart and Target as a perceived defensive retailer. Walmart Advances as Inflation Data Sends Money Into Defensives
- Positive Sentiment: Strong September sales momentum: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales rose 19%. The figures reinforce the strength of its membership, value-focused pricing and e-commerce operations. Costco September Sales Jump and Faster Digital Growth
- Positive Sentiment: Dividend declared: Costco’s board approved a quarterly cash dividend of $1.47 per share, payable November 13 to shareholders of record October 30. The payout provides a modest shareholder return and signals continued confidence in cash generation. Costco Announces Quarterly Cash Dividend
- Positive Sentiment: Expansion and balance-sheet support: Analysts highlighted Costco’s approximately $21.3 billion liquidity cushion, manageable debt and robust cash flows as advantages for funding new warehouses and digital investments. A Florida city council also gave an early approval for a new store. How Costco’s Balance Sheet Gives It an Edge
- Positive Sentiment: Positive earnings expectations: Erste Group raised its FY2027 EPS forecast to $22.80 from $22.67 and expects $25.01 for FY2028, modestly above the company’s current-year consensus outlook. Costco analyst estimates
- Neutral Sentiment: Articles highlighting Costco’s influence on home-buying decisions, younger membership growth and exclusive seasonal products reinforce brand engagement but are unlikely to materially change near-term earnings expectations. Inside the Costco Effect
- Negative Sentiment: Costco continues to trade at a demanding valuation, with a high price-to-earnings multiple. That leaves COST vulnerable if sales growth, membership trends or consumer spending weaken.
Hedge Funds Weigh In On Costco Wholesale
Hedge funds and other institutional investors have recently bought and sold shares of the business. Bank of America Corp DE acquired a new stake in shares of Costco Wholesale during the 2nd quarter worth about $6,781,946,000. Diamant Asset Management Inc. boosted its holdings 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 buying an additional 6,720,130 shares during the period. State Street Corp grew its stake in Costco Wholesale by 31.7% in the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock valued at $22,359,224,000 after buying an additional 5,749,362 shares during the last quarter. Corient Private Wealth LLC grew its stake in Costco Wholesale by 838.9% in the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock valued at $5,282,182,000 after buying an additional 5,472,968 shares during the last quarter. Finally, Legal & General Group Plc acquired a new position in Costco Wholesale in the 2nd quarter valued at about $2,362,188,000. Institutional investors own 68.48% of the company's stock.
Costco Wholesale Company Profile
(
Get Free Report)
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.
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