Costco Wholesale (NASDAQ:COST) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Costco Wholesale (NASDAQ:COSTGet Rating) released its quarterly earnings data on Thursday. The retailer reported $4.20 EPS for the quarter, beating analysts’ consensus estimates of $4.17 by $0.03, Briefing.com reports. The business had revenue of $72.09 billion for the quarter, compared to the consensus estimate of $72 billion. Costco Wholesale had a return on equity of 29.71% and a net margin of 2.60%. The business’s revenue for the quarter was up 17.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $3.90 EPS.

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $487.17 on Friday. The business’s 50 day simple moving average is $529.73 and its 200-day simple moving average is $519.85. The firm has a market capitalization of $215.80 billion, a price-to-earnings ratio of 38.36, a price-to-earnings-growth ratio of 3.72 and a beta of 0.70. Costco Wholesale has a 12 month low of $406.51 and a 12 month high of $612.27. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.04 and a quick ratio of 0.48.

Costco Wholesale Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 12th. Stockholders of record on Friday, July 29th were given a dividend of $0.09 per share. The ex-dividend date of this dividend was Thursday, July 28th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.07%. Costco Wholesale’s payout ratio is 28.35%.

Insider Buying and Selling

In other news, CFO Richard A. Galanti sold 1,000 shares of the firm’s stock in a transaction on Thursday, July 14th. The stock was sold at an average price of $505.60, for a total value of $505,600.00. Following the completion of the transaction, the chief financial officer now owns 25,750 shares in the company, valued at $13,019,200. The sale was disclosed in a document filed with the SEC, which is available at this link. In other news, Director Kenneth D. Denman sold 300 shares of the business’s stock in a transaction on Friday, July 15th. The stock was sold at an average price of $521.68, for a total value of $156,504.00. Following the completion of the transaction, the director now directly owns 5,197 shares of the company’s stock, valued at $2,711,170.96. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Richard A. Galanti sold 1,000 shares of the stock in a transaction on Thursday, July 14th. The shares were sold at an average price of $505.60, for a total value of $505,600.00. Following the sale, the chief financial officer now directly owns 25,750 shares in the company, valued at approximately $13,019,200. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 2,800 shares of company stock valued at $1,449,904. 0.22% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Worth Asset Management LLC acquired a new position in shares of Costco Wholesale in the first quarter valued at approximately $76,000. KB Financial Partners LLC boosted its holdings in shares of Costco Wholesale by 455.2% during the first quarter. KB Financial Partners LLC now owns 161 shares of the retailer’s stock worth $93,000 after purchasing an additional 132 shares during the last quarter. Covestor Ltd grew its position in shares of Costco Wholesale by 87.1% in the first quarter. Covestor Ltd now owns 232 shares of the retailer’s stock valued at $134,000 after purchasing an additional 108 shares during the period. Saxon Interests Inc. acquired a new position in Costco Wholesale in the first quarter valued at $223,000. Finally, Dynamic Technology Lab Private Ltd purchased a new position in Costco Wholesale during the first quarter worth about $284,000. 66.83% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

COST has been the subject of several recent analyst reports. Robert W. Baird restated an “outperform” rating and set a $575.00 price objective on shares of Costco Wholesale in a research report on Friday, September 2nd. BMO Capital Markets reissued a “buy” rating and issued a $580.00 price target on shares of Costco Wholesale in a research report on Monday, May 30th. Citigroup raised their price objective on Costco Wholesale from $510.00 to $545.00 in a report on Thursday, August 4th. StockNews.com raised Costco Wholesale from a “hold” rating to a “buy” rating in a report on Friday, July 15th. Finally, Credit Suisse Group dropped their price target on Costco Wholesale from $570.00 to $550.00 and set a “neutral” rating on the stock in a research note on Friday, May 27th. Four research analysts have rated the stock with a hold rating and twenty-two have issued a buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $575.36.

About Costco Wholesale

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Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories.

Further Reading

Earnings History for Costco Wholesale (NASDAQ:COST)

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