Costco Wholesale Corporation Draws Bearish Options Activity Today

 Costco Wholesale Corporation Draws Bearish Options Activity Today

In today’s session Costco Wholesale Corporation (COST) recorded an unusually high (576) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious COST decrease. With 576 contracts traded and 36124 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: COST170120P00140000 closed last at: $3.5 or 22% up. About 683,380 shares traded hands. Costco Wholesale Corporation (NASDAQ:COST) has declined 8.81% since April 5, 2016 and is downtrending. It has underperformed by 10.77% the S&P500.

Costco Wholesale Corporation (NASDAQ:COST) Ratings Coverage

Out of 21 analysts covering Costco Wholesale (NASDAQ:COST), 15 rate it a “Buy”, 0 “Sell”, while 6 “Hold”. This means 71% are positive. $198 is the highest target while $144.0 is the lowest. The $173.10 average target is 20.76% above today’s ($143.34) stock price. Costco Wholesale has been the topic of 41 analyst reports since August 24, 2015 according to StockzIntelligence Inc. The rating was maintained by Williams Capital Group on Friday, October 23 with “Hold”. The company was maintained on Friday, October 2 by Sterne Agee CRT. RBC Capital Markets initiated Costco Wholesale Corporation (NASDAQ:COST) rating on Tuesday, May 3. RBC Capital Markets has “Outperform” rating and $169 price target. On Friday, April 29 the stock rating was downgraded by Wolfe Research to “Peer Perform”. Goldman Sachs upgraded Costco Wholesale Corporation (NASDAQ:COST) rating on Wednesday, June 1. Goldman Sachs has “Buy” rating and $175 price target. The rating was maintained by Citigroup on Tuesday, August 16 with “Neutral”. As per Thursday, October 1, the company rating was maintained by Telsey Advisory Group. Telsey Advisory Group maintained Costco Wholesale Corporation (NASDAQ:COST) rating on Monday, November 9. Telsey Advisory Group has “Outperform” rating and $175 price target. As per Tuesday, October 18, the company rating was initiated by Wells Fargo. The rating was maintained by JP Morgan with “Overweight” on Monday, October 5.

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 2016 Q2. Its up 0.06, from 0.95 in 2016Q1. The ratio improved, 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.
West Coast Ltd Co holds 4,530 shares or 0.26% of its portfolio. Quest Management Incorporated Or has 89,521 shares for 1.92% of their US portfolio. Gofen And Glossberg Ltd Liability Corp Il has invested 0.6% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST). Intact Investment Mgmt, a Ontario – Canada-based fund reported 16,900 shares. Bragg Finance Advsr Inc holds 0.49% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST) for 17,274 shares. Moreover, Financial Bank Of The West has 0.05% invested in Costco Wholesale Corporation (NASDAQ:COST) for 2,289 shares. The Illinois-based Balyasny Asset Ltd Liability Company has invested 0.02% in Costco Wholesale Corporation (NASDAQ:COST). Cypress Mngmt Ltd Liability Company (Wy) last reported 2,775 shares in the company. Proshare Advisors Limited Liability Corp last reported 0.34% of its portfolio in the stock. Partnervest Advisory Service Ltd Liability Corp accumulated 2,128 shares or 0.17% of the stock. Blackrock Institutional Na last reported 0.29% of its portfolio in the stock. Mathes Inc holds 0.3% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST) for 3,300 shares. First Trust reported 3,264 shares or 0.08% of all its holdings. The California-based Bingham Osborn Scarborough Ltd Limited Liability Company has invested 0.05% in Costco Wholesale Corporation (NASDAQ:COST). Appleton Prtnrs Ma, a Massachusetts-based fund reported 51,411 shares.

Insider Transactions: Since July 11, 2016, the stock had 0 buys, and 10 selling transactions for $11.74 million net activity. $962,347 worth of Costco Wholesale Corporation (NASDAQ:COST) was sold by MEISENBACH JOHN W on Wednesday, August 17. McKay John D also sold $1.25 million worth of Costco Wholesale Corporation (NASDAQ:COST) on Monday, July 11. The insider SCHUTT DOUGLAS W sold 14,656 shares worth $2.44M. Another trade for 20,114 shares valued at $3.00M was sold by SINEGAL JAMES D. $1.03M worth of Costco Wholesale Corporation (NASDAQ:COST) was sold by RUCKELSHAUS JILL S. 2,400 shares with value of $400,982 were sold by GALANTI RICHARD A on Monday, July 11. 4,000 shares were sold by Rose Timothy L., worth $604,483 on Wednesday, October 12.

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. The company has a market cap of $62.49 billion. As of August 28, 2016, the Company operated 715 warehouses across the world. It has a 26.89 P/E ratio. The Company’s average warehouse space is approximately 144,000 square feet.

COST Company Profile

Costco Wholesale Corporation, incorporated on May 12, 1987, 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. The Company’s average warehouse space is approximately 144,000 square feet. The Company’s warehouses on average operate on a seven-day, 70-hour week. The Firm offers merchandise in various categories, which include foods (including dry foods, packaged foods and groceries); sundries (including snack foods, candy, alcoholic and nonalcoholic beverages, and cleaning supplies); hardlines (including appliances, electronics, health and beauty aids, hardware, and garden and patio); fresh foods (including meat, produce, deli and bakery); softlines (including apparel and small appliances), and other (including gas stations and pharmacy).

Another recent and important Costco Wholesale Corporation (NASDAQ:COST) news was published by Fool.com which published an article titled: “Are Shares of Costco Wholesale Corporation a Good Value?” on October 26, 2016.

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