Costco Wholesale Corporation (NASDAQ:COST) Reports Strong November Sales


Costco Wholesale Corporation (NASDAQ:COST) this morning posted strong November sales figures, beating out most expectations by analysts. The company reported net sales for November of $9.68 billion, which was 3% higher than the same time period last year.

“The strength in consumer electronics was driven by TVs and computers,” Naughton noted. “In addition, we would note the 2 YR core comp stack in the US was up 15%, the highest numbers we have seen since the recession. Bottom line, we continue to recommend this best in class global growth retailer given strong returns on capital, consistent same store sales trends, and strong membership renewal rates.”

Shares of Costco Wholesale Corporation (NASDAQ:COST) are trading up $3.07 or 1.91% in the pre-market as investors seemingly like what they see.The stock closed at $161.09 during the last trading session. It is down 12.61% since April 30, 2015 and is uptrending. It has outperformed the S&P500 by 12.81%.

From a total of 10 analysts covering Costco Wholesale (NASDAQ:COST) stock, 6 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 60% of the ratings are positive. The highest target price is $185 while the lowest target price is $144.0. The mean of all analyst targets is $165.44 which is 2.70% above today’s ($161.09) stock price. Costco Wholesale was the topic of 14 analyst reports since August 24, 2015 according to the firm StockzIntelligence Inc. Citigroup initiated shares on November 9 with a “Neutral” rating. JP Morgan maintained shares with a”Overweight” rating and a $162 target share price in their report from an October 5. Northcoast downgraded COST stock in a recent report from November 3 to a “Neutral” rating. Sterne Agee CRT maintained the rating on October 2. Sterne Agee CRT has a “Buy” rating and a $154 price target on shares. Finally, Williams Capital Group maintained the stock with a “Hold” rating in a report they issued on an October 23.

The institutional sentiment increased to 1.04 in Q2 2015. It’s up 0.04, from 1 in 2015Q1. The ratio increased, as 71 funds sold all their Costco Wholesale Corporation shares they owned while 405 reduced their positions. 95 funds bought stakes while 402 increased their total positions. Institutions now own 311.73 million shares which is 18.82% less than the previous share count of 384.01 million in 2015Q1.

Sterling Global Strategies Llc holds 12.24% of its total portfolio in Costco Wholesale Corporation, equating to 26,883 shares. Greenbrier Partners Capital Management Llc owns 225,000 shares representing 7.5% of their total US portfolio. Moreover, Caprock Group Inc. has 6.3% of their total portfolio invested in the company, equating to 50,906 shares. The North Carolina-based Capital Investment Counsel Inc has a total of 6.25% of their portfolio invested in the stock. Cadinha & Co Llc, a Hawaii-based fund reported 223,758 shares owned.

Since March 9, 2015, the stock had 0 insider buys, and 8 selling transactions for a total of $16.68 million in net activity. Schutt Douglas W sold 25,000 shares worth $3.92 million. Libenson Richard M sold 7,790 shares worth $1.21M. Portera Joseph P sold 10,000 shares worth $1.53M. Mckay John D sold 6,779 shares worth $1.04 million. The insider Zook Dennis R sold 9,000 shares worth $1.39 million.

Costco Wholesale Corporation is engaged in the operation of membership warehouses in the United States (U.S.) and Puerto Rico, Canada, United Kingdom (U.K.), Mexico, Japan, Australia, Spain, and through majority-owned subsidiaries in Taiwan and Korea. The company has a market cap of $70.46 billion. The Firm operated 663 membership warehouses and an average warehouse is approximately 144,000 square feet. It has 30 P/E ratio. The Company’s warehouses generally operate on a seven-day, 69-hour week.