Costco Wholesale CEO Sells Shares in Major Transaction

On March 11th, 2023, Costco Wholesale Co. (NASDAQ:COST) CEO Roland Michael Vachris executed a stock sale involving 3,600 shares of Costco. The shares were sold at an average price of $931.00 per share, resulting in total proceeds of $3,351,600.00. As a result of this transaction, Vachris now holds 41,077 shares in the company, which are valued at approximately $38,242,687. This sale marks an 8.06% decrease in Vachris's ownership stake in Costco.

The transaction was officially reported in a filing with the Securities & Exchange Commission, which is publicly accessible.

Costco Stock Performance

On March 14th, Costco's stock experienced a decline of 3.9%, trading down by $36.46 to reach $890.62. During this trading session, 3,438,222 shares changed hands, exceeding the average volume of 1,816,066 shares. Costco has a market capitalization of $395.35 billion and shows a price-to-earnings ratio of 52.30, along with a P/E/G ratio of 6.15. The company has a beta of 0.81, indicating less volatility compared to the market. Presently, Costco's quick ratio stands at 0.43, while the current ratio is 0.98 and the debt-to-equity ratio is 0.23. Over the past year, Costco's stock reached a low of $697.27 and a high of $1,078.24. Its 50-day and 200-day moving averages are recorded at $990.44 and $944.52, respectively.

Recent Earnings Results

Costco released its quarterly earnings on March 6th, 2023, reporting earnings per share (EPS) of $4.02, which fell short of analysts' expectations of $4.09 by $0.07. In terms of revenue, Costco achieved $63.72 billion for the quarter, surpassing the anticipated $63.02 billion. The company reported a net margin of 2.93% and a return on equity of 32.31%. Market analysts predict that Costco will post an EPS of 18.03 for the current fiscal year.

Dividend Announcement

Recently, Costco declared a quarterly dividend that was distributed on February 21st, 2023. Shareholders who were on record as of February 7th received a dividend payment of $1.16. The ex-dividend date was also February 7th. The annualized dividend now stands at $4.64, yielding around 0.52%, with a payout ratio of 27.09%.

Institutional Investors and Hedge Funds

In recent months, various hedge funds and institutional investors have adjusted their stakes in Costco. For example, PKO Investment Management Joint Stock Co acquired a new position valued at approximately $3,665,000 in the fourth quarter. Northstar Financial Companies Inc. also purchased a new stake worth around $1,770,000. Additionally, Centaurus Financial Inc. increased its position by 4.2%, owning 5,514 shares now valued at $5,052,000. Other notable investments were made by Wealthedge Investment Advisors LLC and Anchor Pointe Wealth Management LLC, adding to their holdings during the same period. Currently, institutional investors control about 68.48% of Costco's stock.

Analysts' Opinions

Several brokerages have recently provided insights regarding Costco's stock. UBS Group raised its price target from $840.00 to $1,040.00 while maintaining a "buy" rating. Similarly, Morgan Stanley lifted its price target from $950.00 to $1,150.00 and rated the stock "overweight." Telsey Advisory Group reaffirmed its "outperform" rating with a target of $1,100.00. Cowen also reiterated a "buy" rating. DA Davidson raised its target price from $900.00 to $1,000.00, issuing a "neutral" rating. In total, nine analysts recommend a hold on the stock, while twenty-one suggest a buy, reflecting a consensus rating of "Moderate Buy" with a target price of approximately $1,030.43.

About Costco Wholesale

Costco Wholesale Corporation operates a chain of membership warehouses across various countries, including the United States, Canada, Mexico, Japan, and several European and Asian nations. The company sells a variety of products, including both branded and private-label merchandise.

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