Costco Wholesale Stock Rises 1.3% Following Analyst Upgrade

On Friday, the stock price of Costco Wholesale Co. (NASDAQ:COST) increased by 1.3% during trading after Jefferies Financial Group raised its price target for the stock from $1,050.00 to $1,145.00. Currently, Jefferies Financial Group has assigned a buy rating to the stock. During the day, Costco Wholesale reached a high of $996.13 but last traded at $994.56. A total of 419,855 shares changed hands, which represents a significant decrease of 78% compared to the average trading volume of 1,919,004 shares. The previous closing price was $982.26.

Additional analysts have also provided updates regarding Costco Wholesale. Wells Fargo & Company recently raised their price target on the stock from $850.00 to $950.00, maintaining an "equal weight" rating. Roth MKM increased their price objective from $676.00 to $755.00 and offered a "neutral" rating on September 27th. Similarly, Deutsche Bank raised its price target from $925.00 to $927.00, giving the company a "buy" rating on August 8th. Gordon Haskett also upgraded Costco from an "accumulate" to a "buy" category with a target price of $925.00 on the same day. Lastly, Sanford C. Bernstein initiated coverage on October 22nd, issuing an "outperform" rating with a price target of $1,016.00. Analysts have generally rated the stock positively, with ten analysts suggesting a hold rating and nineteen recommending a buy. MarketBeat notes that Costco currently holds an average rating of "Moderate Buy" with an average price target of $928.50.

Insider Activity

In recent insider trading news, Costco's Executive Vice President Pierre Riel sold 2,000 shares of the company on October 15th at an average price of $896.71, totaling over $1.79 million. After this transaction, Riel still owns 10,210 shares valued at around $9.16 million, marking a 16.38% reduction in his position. Additionally, Executive Vice President Richard A. Galanti sold 1,416 shares on October 24th at an average price of $894.68, which amounted to about $1.27 million. Post-sale, Galanti holds 27,400 shares worth approximately $24.51 million, reflecting a 4.91% decrease in his stake. Over the last 90 days, insiders have sold a total of 11,016 shares, equating to around $9.83 million. Currently, company insiders own approximately 0.18% of Costco's stock.

Institutional Investments in Costco

Several large investors have adjusted their positions in Costco recently. For instance, Gilman Hill Asset Management LLC increased its stake by 19.5% in the second quarter, now holding 613 shares valued at $521,000 after purchasing an additional 100 shares. True Link Financial Advisors LLC entered the scene by acquiring a new stake valued at about $203,000. Atlas Private Wealth Advisors raised their position by 100.2% during the same period, now owning 2,146 shares valued at $1.82 million. Pennsylvania Capital Management Inc. ADV also boosted its holding by 34.9%, bringing its total to 533 shares worth around $453,000 after acquiring an additional 138 shares. Finally, Compton Wealth Advisory Group LLC expanded its position by 6.3%, now possessing 4,118 shares valued at $3.5 million. Overall, institutional investors control approximately 68.48% of Costco's stock.

Costco Wholesale's Stock Metrics

Costco's stock currently has a market capitalization of $440.66 billion, a price-to-earnings (P/E) ratio of 60.02, and a price-to-earnings-growth (PEG) ratio of 6.06. The company maintains a beta of 0.82, a current ratio of 0.97, a quick ratio of 0.44, and a debt-to-equity ratio of 0.25. The stock's 50-day simple moving average stands at $913.65, while its 200-day average is $876.82.

Costco Wholesale reported its most recent quarterly earnings on September 26th, showing an earnings per share (EPS) of $5.15, surpassing analysts' expectations of $5.05 by $0.10. The retailer registered a return on equity of 31.05% with a net margin of 2.90%, and reported quarterly revenue of $79.70 billion, slightly below assumptions predicting $79.91 billion. Year-over-year, Costco's revenue rose by 1.0%, and analysts forecast the company will post a total of 17.75 EPS for the current year.

Recent Dividend Declaration

In addition, Costco announced a quarterly dividend recently, paid out on November 15th. Investors on record as of November 1st received a dividend of $1.16 per share, reflecting an annualized dividend of $4.64 with a yield of 0.47%. The dividend payout ratio for Costco is currently 28.00%.

About Costco Wholesale

Costco Wholesale Corporation, through its subsidiaries, operates membership warehouses across multiple countries, including the United States, Mexico, Canada, Japan, several European countries, and Australia. The firm offers a wide range of merchandise categories, featuring both branded products and private-label options.

Costco, Stock, Market