Costco Wholesale Corporation Could Rise a Lot According to The Today’s Call Option Activity

 Costco Wholesale Corporation Could Rise a Lot According to The Today's Call Option Activity

In today’s session Costco Wholesale Corporation (COST) registered an unusually high (75) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the April, 2017 call, expecting serious COST increase. With 75 contracts traded and 1444 open interest for the Apr, 17 contract, it seems this is a quite bullish bet. The option with symbol: COST170421C00145000 closed last at: $11.4 or 0.9% up. About 221,516 shares traded hands. Costco Wholesale Corporation (NASDAQ:COST) has declined 0.88% since April 26, 2016 and is downtrending. It has underperformed by 6.14% the S&P500.

Analysts await Costco Wholesale Corporation (NASDAQ:COST) to report earnings on December, 7 after the close. They expect $1.20 EPS, up 10.09% or $0.11 from last year’s $1.09 per share. COST’s profit will be $522.38M for 31.61 P/E if the $1.20 EPS becomes a reality. After $1.77 actual EPS reported by Costco Wholesale Corporation for the previous quarter, Wall Street now forecasts -32.20% negative EPS growth.

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. Telsey Advisory Group maintained the shares of COST in a report on Thursday, October 1 with “Outperform” rating. Williams Capital Group maintained the stock with “Hold” rating in Friday, October 23 report. UBS upgraded Costco Wholesale Corporation (NASDAQ:COST) rating on Monday, October 26. UBS has “Buy” rating and $180 price target. The rating was maintained by Citigroup with “Neutral” on Friday, May 27. The stock has “Neutral” rating given by Citigroup on Monday, November 9. The firm earned “Outperform” rating on Monday, November 9 by Telsey Advisory Group. The firm has “Neutral” rating given on Tuesday, November 3 by Northcoast. The stock of Costco Wholesale Corporation (NASDAQ:COST) earned “Equal-Weight” rating by Barclays Capital on Friday, September 23. The firm has “Buy” rating given on Monday, August 24 by Vetr. Deutsche Bank maintained it with “Buy” rating and $195 target price in Tuesday, May 31 report.

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 turned negative, 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.
Tdam Usa owns 13,454 shares or 0.1% of their US portfolio. Cullinan has 0.35% invested in the company for 27,230 shares. The Florida-based Raymond James Fincl Services Advsrs Inc has invested 0.15% in Costco Wholesale Corporation (NASDAQ:COST). Comgest Glob Sas reported 72,983 shares or 0.35% of all its holdings. Moreover, Williams Jones Associates Ltd Liability has 2.01% invested in Costco Wholesale Corporation (NASDAQ:COST) for 277,530 shares. The Pennsylvania-based Brick Kyle Assocs has invested 0.22% in Costco Wholesale Corporation (NASDAQ:COST). Blackrock Advsrs Ltd Liability accumulated 1.07M shares or 0.17% of the stock. Asset Mngmt Ltd holds 0.37% or 2,400 shares in its portfolio. Glenmede Tru Co Na accumulated 0.02% or 22,065 shares. The California-based Nelson Roberts Advsrs Ltd has invested 3.34% in Costco Wholesale Corporation (NASDAQ:COST). Cap Planning Advisors Ltd Co has invested 0.82% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST). Ws Lllp has invested 0.71% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST). Aviance Cap Limited Liability Company has 0.08% invested in the company for 1,300 shares. Mathes Inc holds 3,300 shares or 0.3% of its portfolio. Dai Ichi Life Ins reported 32,542 shares or 0.15% of all its holdings.

Insider Transactions: Since July 11, 2016, the stock had 0 buys, and 12 insider sales for $12.48 million net activity. $962,347 worth of Costco Wholesale Corporation (NASDAQ:COST) was sold by MEISENBACH JOHN W on Wednesday, August 17. Another trade for 7,500 shares valued at $1.25 million was sold by McKay John D. LIBENSON RICHARD M sold $360,135 worth of Costco Wholesale Corporation (NASDAQ:COST) on Tuesday, October 25. Another trade for 4,000 shares valued at $604,483 was sold by Rose Timothy L.. 3,000 shares with value of $453,295 were sold by PETTERSON DAVID S on Wednesday, October 26. 20,114 shares were sold by SINEGAL JAMES D, worth $3.00M. RUCKELSHAUS JILL S had sold 7,442 shares worth $1.24M.

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 $66.05 billion. As of August 28, 2016, the Company operated 715 warehouses across the world. It has a 28.47 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: “Better Buy: Costco Wholesale Corporation vs. Wal-Mart Stores, Inc.” on November 16, 2016.

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