Costco Wholesale (NASDAQ:COST) Stock Price Up 1.6% - Time to Buy?

Costco Wholesale Co. (NASDAQ:COST) experienced a mid-day increase of 1.6% on Friday, trading at a high of $928.80 before settling at $928.50. During the day, around 563,513 shares changed hands, which marks a 71% decrease from the average daily volume of 1,917,023 shares. The stock had previously closed the day at $913.93.

Analyst Ratings Changes

Recent analyst reports have provided insight into the performance of Costco's stock. DA Davidson maintained a "neutral" rating alongside a target price of $880.00 in a research report published on October 10th. Conversely, Loop Capital revised its price target from $975.00 to $1,005.00, giving Costco a "buy" rating in a report dated September 27th. In addition, Evercore ISI also increased its price target for Costco from $985.00 to $990.00 while assigning an "outperform" rating on October 10th. TD Cowen adjusted its target price from $925.00 to $975.00 with a "buy" rating as of September 30th. Furthermore, Sanford C. Bernstein initiated coverage of Costco, rating it as "outperform" with a price target of $1,016.00. Overall, analysts have provided ten hold ratings and eighteen buy ratings for the stock. According to data from MarketBeat.com, Costco currently holds an average rating of "Moderate Buy" with a consensus price target of $905.30.

Costco Wholesale Stock Overview

As of now, Costco Wholesale boasts a market capitalization of $418.83 billion, a price-to-earnings ratio of 56.04, and a PEG ratio of 5.45. The stock's beta stands at 0.80, indicating lower volatility compared to the broader market. The fifty-day moving average is $891.92, while the two-hundred day moving average is $848.69. The company has a current ratio of 0.97, a quick ratio of 0.44, and a debt-to-equity ratio of 0.25.

Costco's Quarterly Earnings Report

Costco Wholesale recently reported its quarterly earnings on September 26th. The company announced an earnings per share (EPS) of $5.15, exceeding analysts' expectations of $5.05 by ten cents. Costco achieved a return on equity of 31.05%, alongside a net margin of 2.90%. The revenue for the quarter totaled $79.70 billion, falling slightly short of predictions that estimated $79.91 billion. In comparison to the same quarter last year, Costco's earnings per share rose from $4.86. Analysts expect the company to achieve an EPS of 17.75 for the current fiscal year.

Dividend Announcement

Costco Wholesale has also announced its quarterly dividend, scheduled for distribution on Friday, November 15th. Shareholders who are on record as of Friday, November 1st will receive a dividend of $1.16 per share, culminating in an annualized dividend of $4.64, reflecting a yield of 0.49%. The ex-dividend date is set for Friday, November 1st, with a payout ratio of 28.00%.

Insider Activity

Recent transactions by executives at the company have been noted as well. On August 15th, EVP Richard A. Galanti sold 500 shares of Costco for an average price of $874.05, amounting to a total of $437,025. Following this, he now holds 22,900 shares, which are valued at approximately $20,015,745. In a similar transaction on the same day, Director Susan L. Decker sold 620 shares at an average price of $876.50, totaling $543,430. Consequently, she retains 11,775 shares worth around $10,320,787. Corporate insiders have collectively sold 12,636 shares valued at $11,238,510 over the past ninety days. Currently, corporate insiders own 0.18% of Costco's shares.

Hedge Fund Activity

Hedge funds and institutional investors have shown recent activity regarding Costco's stock. Financial Connections Group Inc. increased its stake in the company by 557.1% in the second quarter, now owning 46 shares valued at $39,000. Meanwhile, Bank & Trust Co acquired new shares amounting to about $48,000 in the same quarter. Other notable movements include Ruedi Wealth Management Inc. expanding its holdings by 73.5%, Summit Securities Group LLC acquiring new shares valued around $50,000, and Fairway Wealth LLC raising its position by 230.0%. Overall, institutional investors and hedge funds own approximately 68.48% of Costco's stock.

About Costco Wholesale

Costco Wholesale Corporation, along with its subsidiaries, operates membership warehouses across many countries including the United States, Canada, Mexico, Japan, and several more. The company provides a variety of branded and private-label products covering a wide range of merchandise categories.

Conclusion

With the current financial data and stock performance, potential investors may be weighing whether it's the right time to buy Costco Wholesale shares. As always, careful analysis and consideration are advised before investing.

Costco, Stocks, Investment