Costco Wholesale Corporation (COST) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Costco Wholesale Corporation (NASDAQ:COST) from a buy rating to a hold rating in a research report released on Monday.

According to Zacks, “Costco continues to be one of the dominant retail wholesalers based on the breadth and quality of merchandise offered. The stock has outpaced the industry in a year gaining from sturdy comps performance and upbeat results in fourth-quarter fiscal 2017. Costco seems somewhat unfazed by tough retail scenario, comprising soft traffic and inclination toward online shopping. Moreover, we believe that the hike in annual membership fees and higher penetration of Citi Visa co-brand card program will also benefit the stock. We are also encouraged by Costco’s expansion strategy, as it remains committed to opening new clubs and expanding e-commerce capabilities. However, stiff competition and cautious consumer spending remain threats. Further, investors remain concerned about the contraction in gross margin and marginal decline in membership renewal rates that is expected to continue for at least a quarter or two. These may hurt the bottom line.”

A number of other equities research analysts also recently weighed in on COST. UBS AG upgraded Costco Wholesale Corporation from a market perform rating to an outperform rating in a research report on Monday, June 26th. Guggenheim restated a neutral rating on shares of Costco Wholesale Corporation in a research report on Thursday, October 5th. BMO Capital Markets set a $160.00 target price on Costco Wholesale Corporation and gave the stock a hold rating in a research report on Saturday, October 7th. Jefferies Group LLC restated a hold rating and issued a $162.00 target price (down from $168.00) on shares of Costco Wholesale Corporation in a research report on Friday, October 6th. Finally, Robert W. Baird set a $200.00 target price on Costco Wholesale Corporation and gave the stock a buy rating in a research report on Wednesday, October 4th. Eleven research analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and one has given a strong buy rating to the stock. Costco Wholesale Corporation has an average rating of Buy and a consensus target price of $178.50.

Costco Wholesale Corporation (NASDAQ:COST) opened at 157.87 on Monday. The company has a 50-day moving average price of $159.86 and a 200 day moving average price of $164.59. The stock has a market capitalization of $69.02 billion, a P/E ratio of 25.97 and a beta of 0.94. Costco Wholesale Corporation has a 1-year low of $142.11 and a 1-year high of $183.18.

Costco Wholesale Corporation (NASDAQ:COST) last released its earnings results on Thursday, October 5th. The retailer reported $2.08 earnings per share for the quarter, topping analysts’ consensus estimates of $2.02 by $0.06. The firm had revenue of $42.30 billion during the quarter, compared to the consensus estimate of $41.55 billion. Costco Wholesale Corporation had a return on equity of 22.33% and a net margin of 2.08%. The firm’s revenue for the quarter was up 15.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.77 earnings per share. On average, equities analysts predict that Costco Wholesale Corporation will post $6.43 EPS for the current year.

WARNING: This news story was originally published by The Ledger Gazette and is owned by of The Ledger Gazette. If you are accessing this news story on another site, it was illegally copied and reposted in violation of US & international copyright and trademark law. The correct version of this news story can be accessed at https://ledgergazette.com/2017/10/12/costco-wholesale-corporation-cost-downgraded-by-zacks-investment-research.html.

In other Costco Wholesale Corporation news, Director John W. Meisenbach sold 1,000 shares of the company’s stock in a transaction dated Friday, September 1st. The shares were sold at an average price of $157.59, for a total transaction of $157,590.00. Following the completion of the sale, the director now directly owns 6,974 shares in the company, valued at $1,099,032.66. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have sold 3,000 shares of company stock valued at $481,760 over the last 90 days. Corporate insiders own 0.74% of the company’s stock.

Several institutional investors and hedge funds have recently made changes to their positions in COST. Janus Henderson Group PLC raised its position in shares of Costco Wholesale Corporation by 3,005.9% during the second quarter. Janus Henderson Group PLC now owns 4,180,770 shares of the retailer’s stock valued at $668,630,000 after buying an additional 4,046,164 shares during the last quarter. Ameriprise Financial Inc. raised its position in shares of Costco Wholesale Corporation by 62.0% during the first quarter. Ameriprise Financial Inc. now owns 4,583,281 shares of the retailer’s stock valued at $768,568,000 after buying an additional 1,753,741 shares during the last quarter. Harbour Capital Advisors LLC raised its position in shares of Costco Wholesale Corporation by 15,937.3% during the second quarter. Harbour Capital Advisors LLC now owns 1,448,646 shares of the retailer’s stock valued at $9,058,000 after buying an additional 1,439,613 shares during the last quarter. Capital World Investors raised its position in shares of Costco Wholesale Corporation by 6.0% during the second quarter. Capital World Investors now owns 17,777,162 shares of the retailer’s stock valued at $2,843,102,000 after buying an additional 1,007,720 shares during the last quarter. Finally, Vanguard Group Inc. raised its position in shares of Costco Wholesale Corporation by 2.9% during the second quarter. Vanguard Group Inc. now owns 33,640,766 shares of the retailer’s stock valued at $5,380,168,000 after buying an additional 937,121 shares during the last quarter. 72.34% of the stock is owned by institutional investors and hedge funds.

About Costco Wholesale Corporation

Costco Wholesale Corporation is engaged in the operation of membership warehouses in the United States and Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Australia, Spain, and through its subsidiaries in Taiwan and Korea. As of August 28, 2016, the Company operated 715 warehouses across t

According to Zacks, “Costco continues to be one of the dominant retail wholesalers based on the breadth and quality of merchandise offered. The stock has outpaced the industry in a year gaining from sturdy comps performance and upbeat results in fourth-quarter fiscal 2017. Costco seems somewhat unfazed by tough retail scenario, comprising soft traffic and inclination toward online shopping. Moreover, we believe that the hike in annual membership fees and higher penetration of Citi Visa co-brand card program will also benefit the stock. We are also encouraged by Costco’s expansion strategy, as it remains committed to opening new clubs and expanding e-commerce capabilities. However, stiff competition and cautious consumer spending remain threats. Further, investors remain concerned about the contraction in gross margin and marginal decline in membership renewal rates that is expected to continue for at least a quarter or two. These may hurt the bottom line.”

A number of other equities research analysts also recently weighed in on COST. UBS AG upgraded Costco Wholesale Corporation from a market perform rating to an outperform rating in a research report on Monday, June 26th. Guggenheim restated a neutral rating on shares of Costco Wholesale Corporation in a research report on Thursday, October 5th. BMO Capital Markets set a $160.00 target price on Costco Wholesale Corporation and gave the stock a hold rating in a research report on Saturday, October 7th. Jefferies Group LLC restated a hold rating and issued a $162.00 target price (down from $168.00) on shares of Costco Wholesale Corporation in a research report on Friday, October 6th. Finally, Robert W. Baird set a $200.00 target price on Costco Wholesale Corporation and gave the stock a buy rating in a research report on Wednesday, October 4th. Eleven research analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and one has given a strong buy rating to the stock. Costco Wholesale Corporation has an average rating of Buy and a consensus target price of $178.50.

Costco Wholesale Corporation (NASDAQ:COST) opened at 157.87 on Monday. The company has a 50-day moving average price of $159.86 and a 200 day moving average price of $164.59. The stock has a market capitalization of $69.02 billion, a P/E ratio of 25.97 and a beta of 0.94. Costco Wholesale Corporation has a 1-year low of $142.11 and a 1-year high of $183.18.

Costco Wholesale Corporation (NASDAQ:COST) last released its earnings results on Thursday, October 5th. The retailer reported $2.08 earnings per share for the quarter, topping analysts’ consensus estimates of $2.02 by $0.06. The firm had revenue of $42.30 billion during the quarter, compared to the consensus estimate of $41.55 billion. Costco Wholesale Corporation had a return on equity of 22.33% and a net margin of 2.08%. The firm’s revenue for the quarter was up 15.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.77 earnings per share. On average, equities analysts predict that Costco Wholesale Corporation will post $6.43 EPS for the current year.

WARNING: This news story was originally published by The Ledger Gazette and is owned by of The Ledger Gazette. If you are accessing this news story on another site, it was illegally copied and reposted in violation of US & international copyright and trademark law. The correct version of this news story can be accessed at https://ledgergazette.com/2017/10/12/costco-wholesale-corporation-cost-downgraded-by-zacks-investment-research.html.

In other Costco Wholesale Corporation news, Director John W. Meisenbach sold 1,000 shares of the company’s stock in a transaction dated Friday, September 1st. The shares were sold at an average price of $157.59, for a total transaction of $157,590.00. Following the completion of the sale, the director now directly owns 6,974 shares in the company, valued at $1,099,032.66. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have sold 3,000 shares of company stock valued at $481,760 over the last 90 days. Corporate insiders own 0.74% of the company’s stock.

Several institutional investors and hedge funds have recently made changes to their positions in COST. Janus Henderson Group PLC raised its position in shares of Costco Wholesale Corporation by 3,005.9% during the second quarter. Janus Henderson Group PLC now owns 4,180,770 shares of the retailer’s stock valued at $668,630,000 after buying an additional 4,046,164 shares during the last quarter. Ameriprise Financial Inc. raised its position in shares of Costco Wholesale Corporation by 62.0% during the first quarter. Ameriprise Financial Inc. now owns 4,583,281 shares of the retailer’s stock valued at $768,568,000 after buying an additional 1,753,741 shares during the last quarter. Harbour Capital Advisors LLC raised its position in shares of Costco Wholesale Corporation by 15,937.3% during the second quarter. Harbour Capital Advisors LLC now owns 1,448,646 shares of the retailer’s stock valued at $9,058,000 after buying an additional 1,439,613 shares during the last quarter. Capital World Investors raised its position in shares of Costco Wholesale Corporation by 6.0% during the second quarter. Capital World Investors now owns 17,777,162 shares of the retailer’s stock valued at $2,843,102,000 after buying an additional 1,007,720 shares during the last quarter. Finally, Vanguard Group Inc. raised its position in shares of Costco Wholesale Corporation by 2.9% during the second quarter. Vanguard Group Inc. now owns 33,640,766 shares of the retailer’s stock valued at $5,380,168,000 after buying an additional 937,121 shares during the last quarter. 72.34% of the stock is owned by institutional investors and hedge funds.

About Costco Wholesale Corporation

Costco Wholesale Corporation is engaged in the operation of membership warehouses in the United States and Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Australia, Spain, and through its subsidiaries in Taiwan and Korea. As of August 28, 2016, the Company operated 715 warehouses across the world.

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