Traders Buy Costco Wholesale (COST) on Weakness After Insider Selling

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Traders bought shares of Costco Wholesale Co. (NASDAQ:COST) on weakness during trading on Wednesday following insider selling activity. $50.64 million flowed into the stock on the tick-up and $32.43 million flowed out of the stock on the tick-down, for a money net flow of $18.21 million into the stock. Of all companies tracked, Costco Wholesale had the 18th highest net in-flow for the day. Costco Wholesale traded down ($0.87) for the day and closed at $207.12Specifically, insider Russell D. Miller sold 12,393 shares of the company’s stock in a transaction that occurred on Thursday, April 19th. The stock was sold at an average price of $194.12, for a total transaction of $2,405,729.16. Following the transaction, the insider now directly owns 1 shares of the company’s stock, valued at $194.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John W. Meisenbach sold 3,000 shares of the company’s stock in a transaction that occurred on Tuesday, May 1st. The stock was sold at an average price of $196.49, for a total value of $589,470.00. Following the transaction, the director now directly owns 8,654 shares in the company, valued at $1,700,424.46. The disclosure for this sale can be found here. Over the last three months, insiders sold 38,884 shares of company stock worth $7,805,926. Insiders own 0.58% of the company’s stock.

COST has been the topic of a number of research reports. Loop Capital initiated coverage on Costco Wholesale in a research report on Wednesday, May 16th. They set a “buy” rating and a $224.00 target price on the stock. BidaskClub lowered Costco Wholesale from a “strong-buy” rating to a “buy” rating in a research report on Friday, March 9th. Citigroup upped their target price on Costco Wholesale from $217.00 to $222.00 and gave the stock a “buy” rating in a research report on Friday, June 1st. Argus upped their target price on Costco Wholesale from $200.00 to $220.00 and gave the stock a “buy” rating in a research report on Wednesday, May 30th. Finally, ValuEngine raised Costco Wholesale from a “hold” rating to a “buy” rating in a research report on Thursday, June 21st. Seven analysts have rated the stock with a hold rating, twenty-one have given a buy rating and one has issued a strong buy rating to the company. Costco Wholesale presently has an average rating of “Buy” and an average price target of $200.29.

The company has a market cap of $91.21 billion, a PE ratio of 35.59, a price-to-earnings-growth ratio of 2.76 and a beta of 0.95. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.01 and a quick ratio of 0.47.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings data on Thursday, May 31st. The retailer reported $1.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.68 by $0.02. The firm had revenue of $32.36 billion during the quarter, compared to the consensus estimate of $31.89 billion. Costco Wholesale had a return on equity of 24.67% and a net margin of 2.16%. The business’s revenue for the quarter was up 12.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.40 EPS. equities analysts forecast that Costco Wholesale Co. will post 6.76 earnings per share for the current year.

A number of large investors have recently made changes to their positions in the business. Magellan Asset Management Ltd grew its stake in Costco Wholesale by 2.4% in the 4th quarter. Magellan Asset Management Ltd now owns 6,588,695 shares of the retailer’s stock valued at $1,226,288,000 after purchasing an additional 154,320 shares during the period. Geode Capital Management LLC grew its stake in Costco Wholesale by 2.6% in the 4th quarter. Geode Capital Management LLC now owns 5,013,862 shares of the retailer’s stock valued at $931,370,000 after purchasing an additional 128,366 shares during the period. Fisher Asset Management LLC grew its stake in Costco Wholesale by 7.0% in the 1st quarter. Fisher Asset Management LLC now owns 2,488,816 shares of the retailer’s stock valued at $468,968,000 after purchasing an additional 162,335 shares during the period. Clearbridge Investments LLC grew its stake in Costco Wholesale by 252.5% in the 4th quarter. Clearbridge Investments LLC now owns 2,388,496 shares of the retailer’s stock valued at $444,547,000 after purchasing an additional 1,711,003 shares during the period. Finally, Renaissance Technologies LLC grew its stake in Costco Wholesale by 73.5% in the 4th quarter. Renaissance Technologies LLC now owns 2,100,913 shares of the retailer’s stock valued at $391,022,000 after purchasing an additional 890,200 shares during the period. Hedge funds and other institutional investors own 71.36% of the company’s stock.

Costco Wholesale Company Profile

Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. It offers branded and private-label products in a range of merchandise categories. The company provides dry and packaged foods, and groceries; snack foods, candies, alcoholic and nonalcoholic beverages, and cleaning supplies; appliances, electronics, health and beauty aids, hardware, and garden and patio products; meat, bakery, deli, and produces; and apparel and small appliances.

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