Costco Wholesale Corporation Can’t Burn Your Long Portfolio. Option Traders are Bullish

 Costco Wholesale Corporation Can't Burn Your Long Portfolio. Option Traders are Bullish

In today’s session Costco Wholesale Corporation (COST) registered an unusually high (2,310) 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 2,310 contracts traded and 86154 open interest for the Jan, 17 contract, it seems this is a quite bullish bet. The option with symbol: COST170120C00155000 closed last at: $3.45 or 13.1% up. About 533,129 shares traded hands. Costco Wholesale Corporation (NASDAQ:COST) has declined 1.37% since April 18, 2016 and is downtrending. It has underperformed by 5.80% 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. Costco Wholesale has been the topic of 41 analyst reports since August 24, 2015 according to StockzIntelligence Inc. The firm has “Buy” rating given on Friday, October 2 by Sterne Agee CRT. On Friday, May 27 the stock rating was maintained by Citigroup with “Neutral”. On Tuesday, October 18 the stock rating was initiated by Wells Fargo with “Market Perform”. RBC Capital Markets initiated Costco Wholesale Corporation (NASDAQ:COST) rating on Tuesday, May 3. RBC Capital Markets has “Outperform” rating and $169 price target. The firm has “Neutral” rating by Cleveland given on Friday, February 26. The company was initiated on Monday, November 9 by Citigroup. The firm has “Hold” rating given on Friday, October 23 by Williams Capital Group. Deutsche Bank maintained it with “Hold” rating and $144.0 target price in Wednesday, September 30 report. Wolfe Research downgraded the shares of COST in a report on Friday, April 29 to “Peer Perform” rating. Vetr upgraded the shares of COST in a report on Monday, August 24 to “Buy” rating.

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 decreased to 0.94 in Q2 2016. Its down 0.07, from 1.01 in 2016Q1. The ratio fall, 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.
Mitsubishi Ufj Holdings Communication Ltd, a Japan-based fund reported 380 shares. Com Of Vermont last reported 0.7% of its portfolio in the stock. The Colorado-based Advisors Asset Management has invested 0.22% in Costco Wholesale Corporation (NASDAQ:COST). Nippon Life Insur has 31,397 shares for 0.12% of their US portfolio. Citigroup has invested 0.09% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST). Winslow Evans Crocker accumulated 0% or 19,838 shares. Bailard last reported 0.37% of its portfolio in the stock. The Texas-based Texas Permanent School Fund has invested 0.3% in Costco Wholesale Corporation (NASDAQ:COST). Farmers & Merchants Invests, a Nebraska-based fund reported 460 shares. Barr E S holds 3,450 shares or 0.07% of its portfolio. Invest Centers Of America holds 0.11% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST) for 3,755 shares. Tiaa Cref Trust Fsb Mo reported 19,538 shares or 0.03% of all its holdings. Moreover, Alley Ltd Llc has 1.07% invested in Costco Wholesale Corporation (NASDAQ:COST) for 14,945 shares. Winch Advisory Ltd Liability Corp, a Wisconsin-based fund reported 67 shares. Blackrock Investment Limited Liability Corporation holds 1.74M shares or 0.35% of its portfolio.

Insider Transactions: Since July 11, 2016, the stock had 0 insider buys, and 12 selling transactions for $12.48 million net activity. Shares for $400,982 were sold by GALANTI RICHARD A. On Tuesday, July 26 RUCKELSHAUS JILL S sold $1.24 million worth of the stock or 7,442 shares. Rose Timothy L. had sold 4,000 shares worth $604,483. LIBENSON RICHARD M sold $360,135 worth of stock or 2,385 shares. $1.25 million worth of Costco Wholesale Corporation (NASDAQ:COST) was sold by McKay John D. PETTERSON DAVID S sold 3,000 shares worth $453,295. SINEGAL JAMES D also sold $3.00 million worth of Costco Wholesale Corporation (NASDAQ:COST) shares.

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 $65.81 billion. As of August 28, 2016, the Company operated 715 warehouses across the world. It has a 28.24 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).

More news for Costco Wholesale Corporation (NASDAQ:COST) were recently published by: Fool.com, which released: “Better Buy: Costco Wholesale Corporation vs. Wal-Mart Stores, Inc.” on November 16, 2016. Fool.com‘s article titled: “Are Shares of Costco Wholesale Corporation a Good Value?” and published on October 26, 2016 is yet another important article.

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