Costco Wholesale Corp (NASDAQ: COST)’s stock price has surge by 0.33relation to previous closing price of 867.91. Nevertheless, the company has seen a 2.52% surge in its stock price over the last five trading sessions. zacks.com reported 2024-06-18 that Better pricing, effective inventory management and operational initiatives are likely to drive Retail – Discount Stores companies. Costco (COST), Target (TGT), Dollar General (DG) and Burlington Stores (BURL) look well-placed.
Is It Worth Investing in Costco Wholesale Corp (NASDAQ: COST) Right Now?
Costco Wholesale Corp (NASDAQ: COST) has a higher price-to-earnings ratio of 53.97x compared to its average ratio, The 36-month beta value for COST is at 0.78. Analysts have varying views on the stock, with 11 analysts rating it as a “buy,” 7 rating it as “overweight,” 11 as “hold,” and 0 as “sell.”
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The public float for COST is 442.31M, and currently, shorts hold a 1.44% of that float. The average trading volume for COST on June 20, 2024 was 1.74M shares.
COST’s Market Performance
The stock of Costco Wholesale Corp (COST) has seen a 2.52% increase in the past week, with a 9.42% rise in the past month, and a 18.93% gain in the past quarter. The volatility ratio for the week is 1.42%, and the volatility levels for the past 30 days are at 1.51% for COST. The simple moving average for the last 20 days is 5.37% for COST stock, with a simple moving average of 30.10% for the last 200 days.
Analysts’ Opinion of COST
Many brokerage firms have already submitted their reports for COST stocks, with Telsey Advisory Group repeating the rating for COST by listing it as a “Outperform.” The predicted price for COST in the upcoming period, according to Telsey Advisory Group is $900 based on the research report published on June 06, 2024 of the current year 2024.
Telsey Advisory Group, on the other hand, stated in their research note that they expect to see COST reach a price target of $850, previously predicting the price at $800. The rating they have provided for COST stocks is “Outperform” according to the report published on May 31st, 2024.
Gordon Haskett gave a rating of “Accumulate” to COST, setting the target price at $775 in the report published on April 03rd of the current year.
COST Trading at 12.32% from the 50-Day Moving Average
After a stumble in the market that brought COST to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 0.02% of gains for the given period.
Volatility was left at 1.51%, however, over the last 30 days, the volatility rate increased by 1.42%, as shares surge +9.80% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +22.33% upper at present.
During the last 5 trading sessions, COST rose by +2.52%, which changed the moving average for the period of 200-days by +58.53% in comparison to the 20-day moving average, which settled at $830.24. In addition, Costco Wholesale Corp saw 31.92% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at COST starting from Miller Russell D, who sale 785 shares at the price of $722.86 back on Apr 17 ’24. After this action, Miller Russell D now owns 10,000 shares of Costco Wholesale Corp, valued at $567,443 using the latest closing price.
Callans Patrick J, the Executive VP of Costco Wholesale Corp, sale 2,500 shares at $714.86 during a trade that took place back on Mar 11 ’24, which means that Callans Patrick J is holding 62,895 shares at $1,787,150 based on the most recent closing price.
Stock Fundamentals for COST
Current profitability levels for the company are sitting at:
- 0.04 for the present operating margin
- 0.12 for the gross margin
The net margin for Costco Wholesale Corp stands at 0.03. The total capital return value is set at 0.28. Equity return is now at value 31.64, with 10.65 for asset returns.
Based on Costco Wholesale Corp (COST), the company’s capital structure generated 0.24 points at debt to capital in total, while cash flow to debt ratio is standing at 1.75. The debt to equity ratio resting at 0.32. The interest coverage ratio of the stock is -141.0.
Currently, EBITDA for the company is 10.72 billion with net debt to EBITDA at -0.11. When we switch over and look at the enterprise to sales, we see a ratio of 1.52. The receivables turnover for the company is 98.22for trailing twelve months and the total asset turnover is 3.74. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.94.
Conclusion
In conclusion, Costco Wholesale Corp (COST) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
