Stock Analysis:Costco Wholesale Corporation (NASDAQ:COST) Target Raised
In a recent report issued by JP Morgan on 11 December, Costco Wholesale Corporation (NASDAQ:COST) had its target price per share upgraded to $180.00. The firm now has a solid Overweight rating on shares.
From a total of 23 analysts covering Costco Wholesale (NASDAQ:COST) stock, 18 rate it a ”Buy”, 0 a “Sell”, and 10 a ”Hold”. This means that 64% of the ratings are positive. The highest target price is $198 while the lowest target price is $136. The mean of all analyst targets is $170.04 with a 9.20% above today’s ($159.86) stock price. Costco Wholesale was the topic of 22 analyst reports since August 24, 2015 according to the firm StockzIntelligence Inc. Argus Research maintained shares on December 10 with “Buy” rating. Telsey Advisory Group maintained shares with “Outperform” rating and $175 target share price in a report from a November 9. Piper Jaffray maintained COST stock in a recent report from December 9 with “Overweight” rating. UBS upgraded the rating on October 26. UBS has a “Buy” rating and a $180 price target on shares. Finally, Citigroup initiated the stock with “Neutral” rating in a report issued on a November 9.
Approximately 1.48M shares of stock traded hands. Costco Wholesale Corporation (NASDAQ:COST) has risen 10.95% since May 8, 2015 and is uptrending. It has outperformed by 13.97% the S&P500.
The overall sentiment of institutions has increased to 1.27 in Q2 2015. Its up 0.23, from 1.04 in 2015Q2. The ratio improved, as 67 institutions have sold all the shares of Costco Wholesale Corporation that they owned while 365 funds have taken shares off the table. 85 funds have purchased shares for the first time while 462 added to their positions. These institutions now hold 324.29 million shares or 4.03% more than the 311.73 million shares they owned in 2015Q2.
The Fund Sterling Global Strategies Llc currently is holding shares equating to 21.45% of its total portfolio in Costco Wholesale Corporation representing a total of 26,883 shares. Another fund,Greenbrier Partners Capital Management Llc, is holding a total of 225,000 shares equating to 8.68% of their holdings. Additionally, Capital Investment Counsel Inc has a 93,149 share stake in Costco Wholesale Corporation which represents 7.28% of their total portfolio. The Fund, Garrison Bradford & Associates Inc, based out of New York, has also built up a stake in the stock, which represents a total of 6.73% of their total portfolio. Finally Norman Fields Gottscho Capital Management Llc, a fund which is based in the state of New York reported a total holdings of 63,193 shares.
Insider activity is a very important aspect to track on any stock. Going back to March 9, 2015, shareholders of Costco Wholesale Corporation have witnessed 0 insider buys, and a total of 8 sales equating to a net activity of approximately $16.68 million . Schutt Douglas W sold 25,000 shares worth approximately $3.92M. Libenson Richard M sold 7,790 shares worth approximately $1.21 million. Portera Joseph P sold 10,000 shares worth approximately $1.53 million. Mckay John D sold 6,779 shares worth approximately $1.04 million. The company insider Zook Dennis R sold 9,000 shares worth $1.39M.
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 $71.12 billion. The Firm operated 663 membership warehouses and an average warehouse is approximately 144,000 square feet. It has 29.97 P/E ratio. The Company’s warehouses generally operate on a seven-day, 69-hour week.
According to Zacks Investment Research, “Costco Wholesale Corp. operates membership warehouses based on the concept that offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. This rapid inventory turnover enables Costco to operate profitably at significantly lower gross margins than traditional wholesalers, discount retailers and supermarkets.” Get a free copy of the Zacks research report on Costco Wholesale Corporation (COST).