Costco Wholesale (NASDAQ:COST) Reaches New 1-Year High on Analyst Upgrade

Costco Wholesale Corporation (NASDAQ:COST) shares hit a new 52-week high on Thursday after Sanford C. Bernstein raised their price target on the stock from $1,143.00 to $1,155.00. Sanford C. Bernstein currently has an outperform rating on the stock. Costco Wholesale traded as high as $1,097.09 and last traded at $1,099.3870, with a volume of 36,524 shares trading hands. The stock had previously closed at $1,087.61.

Several other equities research analysts have also recently issued reports on the company. Bank of America lowered their price objective on Costco Wholesale from $1,200.00 to $1,095.00 and set a “buy” rating for the company in a research report on Wednesday, September 16th. Evercore reiterated an “outperform” rating on shares of Costco Wholesale in a research note on Tuesday, September 22nd. Mizuho reduced their target price on Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating on the stock in a research report on Friday, September 25th. BTIG Research reissued a “buy” rating and issued a $1,125.00 price target on shares of Costco Wholesale in a research note on Wednesday, September 23rd. Finally, CICC Research began coverage on Costco Wholesale in a research note on Wednesday, October 21st. They issued an “outperform” rating and a $1,050.00 price target on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Costco Wholesale has a consensus rating of “Moderate Buy” and a consensus target price of $1,092.23.

Insiders Place Their Bets

In other Costco Wholesale news, EVP William Richard Wilcox sold 1,100 shares of the company’s stock in a transaction dated Tuesday, October 13th. The stock was 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 directly owned 3,094 shares in the company, valued at $2,964,701.74. This represents a 26.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Claudine Adamo sold 2,200 shares of the firm’s stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the transaction, the executive vice president owned 7,134 shares in the company, valued at approximately $6,534,244.62. This trade represents a 23.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.10% of the company’s stock.

Recent Costco Wholesale Headlines

These are some of the COST headlines that stood out recently:

• Positive Sentiment: Costco declared a $30-per-share special dividend, totaling about $13.3 billion, payable December 4 to shareholders of record November 24. The company also reauthorized a $4 billion share-repurchase program through 2030, signaling substantial cash generation and a willingness to return capital. Costco dividend and repurchase announcement
• Positive Sentiment: Bernstein raised its price target to $1,155 from $1,143 and maintained an Outperform rating. Separately, a report said 38 ETFs purchased Costco shares on Nov. 10, with total reported ETF buying of $88.9 million. Analyst and market commentary ETF trading report
• Negative Sentiment: Freedom Broker cut its rating from Buy to Hold, citing valuation concerns, and set a $1,050 target. The downgrade underscores the risk that Costco’s premium share price may limit upside even with strong business performance. Freedom Broker downgrade

Institutional Trading of Costco Wholesale

Institutional investors and hedge funds have recently bought and sold shares of the business. Sarasin & Partners LLP increased its holdings in shares of Costco Wholesale by 6.9% in the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock valued at $200,372,000 after acquiring an additional 13,795 shares during the last quarter. Silvant Capital Management LLC acquired a new stake in shares of Costco Wholesale during the 2nd quarter valued at approximately $16,013,000. Nissay Asset Management Corp Japan lifted its stake in Costco Wholesale by 4.1% during the second quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer’s stock worth $148,193,000 after purchasing an additional 6,200 shares during the last quarter. Signal Advisors Wealth LLC lifted its stake in Costco Wholesale by 97.0% during the third quarter. Signal Advisors Wealth LLC now owns 3,531 shares of the retailer’s stock worth $3,214,000 after purchasing an additional 1,739 shares during the last quarter. Finally, Hyperion Asset Management Ltd lifted its stake in Costco Wholesale by 9.0% during the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer’s stock worth $64,325,000 after purchasing an additional 5,656 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company’s stock.

Costco Wholesale Trading Up 0.6%

The stock has a market cap of $484.71 billion, a price-to-earnings ratio of 52.88, a P/E/G ratio of 4.71 and a beta of 0.85. The business’s fifty day simple moving average is $960.23 and its 200 day simple moving average is $973.88. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The company had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion. During the same period in the prior year, the company earned $5.87 earnings per share. The firm’s revenue was up 11.1% compared to the same quarter last year. On average, research analysts predict that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Dividend Announcement

The firm also recently disclosed a special dividend, which will be paid on Friday, December 4th. Investors of record on Tuesday, November 24th will be paid a dividend of $30.00 per share. The ex-dividend date is Tuesday, November 24th. Costco Wholesale’s dividend payout ratio is 28.32%.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally low prices. Its products include groceries, fresh foods, appliances, electronics, apparel, furniture, and household goods, as well as its Kirkland Signature private-label line. The company also provides services such as gasoline stations, pharmacies, optical and hearing-aid centers, food courts, and travel offerings. Costco serves members through warehouses and online channels.