What’s Propelling Costco Wholesale Corporation to Increase So Much?

 What's Propelling Costco Wholesale Corporation to Increase So Much?

In today’s session Costco Wholesale Corporation (COST) registered an unusually high (532) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the January, 2017 call, expecting serious COST increase. With 532 contracts traded and 23974 open interest for the Jan, 17 contract, it seems this is a quite bullish bet. The option with symbol: COST170120C00175000 closed last at: $0.17 or 26.1% down. About 1.47 million shares traded hands. Costco Wholesale Corporation (NASDAQ:COST) has declined 1.65% since March 14, 2016 and is downtrending. It has underperformed by 7.26% the S&P500.

Costco Wholesale Corporation (NASDAQ:COST) Ratings Coverage

Out of 20 analysts covering Costco Wholesale (NASDAQ:COST), 14 rate it a “Buy”, 0 “Sell”, while 6 “Hold”. This means 70% are positive. Costco Wholesale has been the topic of 39 analyst reports since August 24, 2015 according to StockzIntelligence Inc. Vetr upgraded Costco Wholesale Corporation (NASDAQ:COST) on Monday, August 24 to “Buy” rating. RBC Capital Markets maintained the stock with “Outperform” rating in Friday, May 27 report. The stock of Costco Wholesale Corporation (NASDAQ:COST) has “Buy” rating given on Monday, October 26 by UBS. The firm earned “Overweight” rating on Monday, October 5 by JP Morgan. The rating was maintained by Piper Jaffray on Wednesday, December 9 with “Overweight”. The firm earned “Outperform” rating on Monday, November 9 by Telsey Advisory Group. Citigroup maintained Costco Wholesale Corporation (NASDAQ:COST) rating on Friday, May 27. Citigroup has “Neutral” rating and $155 price target. The stock of Costco Wholesale Corporation (NASDAQ:COST) has “Hold” rating given on Friday, October 23 by Williams Capital Group. The stock of Costco Wholesale Corporation (NASDAQ:COST) has “Hold” rating given on Wednesday, September 30 by Deutsche Bank. On Friday, September 23 the stock rating was maintained by Barclays Capital with “Equal-Weight”.

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.”

Insitutional Activity: The institutional sentiment increased to 1.01 in Q2 2016. Its up 0.06, from 0.95 in 2016Q1. The ratio is positive, as 75 funds sold all Costco Wholesale Corporation shares owned while 403 reduced positions. 73 funds bought stakes while 410 increased positions. They now own 314.43 million shares or 6.83% less from 337.47 million shares in 2016Q1.
Cullinan Associate has invested 0.35% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST). Moreover, Commerce Fincl Bank has 0.48% invested in Costco Wholesale Corporation (NASDAQ:COST) for 191,886 shares. Chevy Chase Tru holds 0.39% or 444,492 shares in its portfolio. Axa accumulated 402,328 shares or 0.28% of the stock. Montag A & Associates holds 0.28% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST) for 13,290 shares. Tower Bridge Advsr owns 11,032 shares or 0% of their US portfolio. Peak Asset Limited Co has 0.09% invested in the company for 1,315 shares. Regions last reported 45,471 shares in the company. Lincoln Capital Lc has 2.61% invested in the company for 22,238 shares. Fincl Bank Of America Corporation De accumulated 0.26% or 7.22 million shares. Moreover, Moody National Bank Trust Division has 0.04% invested in Costco Wholesale Corporation (NASDAQ:COST) for 4,045 shares. The Pennsylvania-based Covington Invest Advisors Incorporated has invested 0.41% in Costco Wholesale Corporation (NASDAQ:COST). Prentiss Smith And Communication holds 31 shares or 0% of its portfolio. Massachusetts Service Ma owns 3.51M shares or 0.28% of their US portfolio. Moreover, Umb National Bank & Trust N A Mo has 1.1% invested in Costco Wholesale Corporation (NASDAQ:COST) for 167,058 shares.

Insider Transactions: Since July 11, 2016, the stock had 0 buys, and 8 sales for $10.93 million net activity. On Tuesday, July 26 the insider RUCKELSHAUS JILL S sold $1.24 million. Rose Timothy L. had sold 4,000 shares worth $604,483. The insider SINEGAL JAMES D sold $3.00 million. On Wednesday, August 17 the insider MEISENBACH JOHN W sold $962,347. 14,656 shares with value of $2.44M were sold by SCHUTT DOUGLAS W on Monday, July 11. GALANTI RICHARD A also sold $400,982 worth of Costco Wholesale Corporation (NASDAQ:COST) shares. McKay John D sold $1.25 million worth of stock or 7,500 shares.

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 $65.02 billion. The Firm operated 663 membership warehouses and an average warehouse is approximately 144,000 square feet. It has a 27.92 P/E ratio. The Company’s warehouses generally operate on a seven-day, 69-hour week.

COST Company Profile

Costco Wholesale Corporation (Costco), incorporated on May 12, 1987, 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. As of August 31, 2014, the Company operated 663 membership warehouses. The Company’s average warehouse is approximately 144,000 square feet. The Company’s warehouses generally operate on a seven-day, 69-hour week. The Company’s product categories include Food, Sundries, Hardlines, Fresh Food, Softlines, Ancillary and Other.

More important recent Costco Wholesale Corporation (NASDAQ:COST) news were published by: Usnews.com which released: “Is Your Amazon Prime Membership Hurting Costco Wholesale Corporation? (COST)” on September 27, 2016, also Seekingalpha.com published article titled: “Costco Wholesale – Looking To Get Back On Track After A Subpar Year”, Schaeffersresearch.com published: “Earnings Preview: Costco Wholesale Corporation and PepsiCo, Inc.” on September 28, 2016. More interesting news about Costco Wholesale Corporation (NASDAQ:COST) was released by: Seekingalpha.com and their article: “Costco: What You Need To Know” with publication date: October 13, 2016.

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