Costco Wholesale Corporation [NASDAQ: COST] loss -0.54% or -1.72 points to close at $317.32 with a heavy trading volume of 8102777 shares. The company report on March 5, 2021 that Costco Wholesale Corporation Reports Second Quarter and Year-to-Date Operating Results for Fiscal 2021 and February Sales Results.
Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) announced its operating results for the second quarter (twelve weeks) and the first 24 weeks of fiscal 2021, ended February 14, 2021.
Net sales for the quarter increased 14.7 percent, to $43.89 billion, from $38.26 billion last year. Net sales for the first 24 weeks increased 15.8 percent, to $86.23 billion, from $74.49 billion last year.
It opened the trading session at $315.329, the shares rose to $318.43 and dropped to $307.00, the range by which the price of stock traded the whole day. The daily chart for COST points out that the company has recorded -9.26% loss over the past six months. However, it is still -17.84% lower than its most recent low trading price.
If we look at the average trading volume of 2.73M shares, COST reached to a volume of 8102777 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Costco Wholesale Corporation [COST]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for COST shares is $398.89 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on COST stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Telsey Advisory Group have made an estimate for Costco Wholesale Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on March 05, 2021. While these analysts kept the previous recommendation, Telsey Advisory Group raised their target price from $390 to $430. The new note on the price target was released on November 30, 2020, representing the official price target for Costco Wholesale Corporation stock. Previously, the target price had yet another raise to $390, while Telsey Advisory Group analysts kept a Outperform rating on COST stock. On October 16, 2020, analysts increased their price target for COST shares from 321 to 435.
The Average True Range (ATR) for Costco Wholesale Corporation is set at 6.36, with the Price to Sales ratio for COST stock in the period of the last 12 months amounting to 0.79. The Price to Book ratio for the last quarter was 9.46, with the Price to Cash per share for the same quarter was set at 32.39. Price to Free Cash Flow for COST in the course of the last twelve months was 30.91 with Quick ratio for the last quarter at 0.50.
Trading performance analysis for COST stock
Costco Wholesale Corporation [COST] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.13. With this latest performance, COST shares dropped by -10.67% in over the last four-week period, additionally sinking by -9.26% over the last 6 months – not to mention a rise of 3.13% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for COST stock in for the last two-week period is set at 18.16, with the RSI for the last a single of trading hit 11.62, and the three-weeks RSI is set at 23.59 for Costco Wholesale Corporation [COST]. The present Moving Average for the last 50 days of trading for this stock 355.91, while it was recorded at 324.10 for the last single week of trading, and 347.17 for the last 200 days.
Costco Wholesale Corporation [COST]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Costco Wholesale Corporation [COST] shares currently have an operating margin of +3.64 and a Gross Margin at +13.15. Costco Wholesale Corporation’s Net Margin is presently recorded at +2.40.
Return on Total Capital for COST is now 23.10, given the latest momentum, and Return on Invested Capital for the company is 16.08. Return on Equity for this stock inclined to 23.87, with Return on Assets sitting at 7.93. When it comes to the capital structure of this company, Costco Wholesale Corporation [COST] has a Total Debt to Total Equity ratio set at 60.63. Additionally, COST Total Debt to Total Capital is recorded at 37.75, with Total Debt to Total Assets ending up at 19.95. Long-Term Debt to Equity for the company is recorded at 58.68, with the Long-Term Debt to Total Capital now at 36.53.
Reflecting on the efficiency of the workforce at the company, Costco Wholesale Corporation [COST] managed to generate an average of $14,659 per employee. Receivables Turnover for the company is 108.11 with a Total Asset Turnover recorded at a value of 3.30.Costco Wholesale Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.50 and a Current Ratio set at 1.00.
Costco Wholesale Corporation [COST]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Costco Wholesale Corporation posted 1.89/share EPS, while the average EPS was predicted by analysts to be reported at 1.95/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -3.10%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for COST. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Costco Wholesale Corporation go to 8.60%.
An analysis of insider ownership at Costco Wholesale Corporation [COST]
There are presently around $95,788 million, or 69.80% of COST stock, in the hands of institutional investors. The top three institutional holders of COST stocks are: VANGUARD GROUP INC with ownership of 36,946,831, which is approximately -1.245% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 28,684,232 shares of the stock with an approximate value of $9.1 billion in COST stocks shares; and STATE STREET CORP, currently with $5.45 billion in COST stock with ownership of nearly -5.063% of the company’s market capitalization.
Positions in Costco Wholesale Corporation stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 1,267 institutional holders increased their position in Costco Wholesale Corporation [NASDAQ:COST] by around 12,687,154 shares. Additionally, 883 investors decreased positions by around 14,893,886 shares, while 261 investors held positions by with 274,285,189 shares. The mentioned changes placed institutional holdings at 301,866,229 shares, according to the latest SEC report filing. COST stock had 266 new institutional investments in for a total of 1,441,482 shares, while 81 institutional investors sold positions of 2,187,446 shares during the same period.