Shares of Costco Wholesale Corporation (NASDAQ:COST) recorded 3.03% gain during trading session on December 6th, 2018. The script traded as low as $226.6 and last traded at $233.20. 3.94 million shares changed exchanged hands during trading, a drop of -57.47% from the 30-day average session volume of 2.50M shares. The firm had previously closed at $226.35. The company has $437.68M outstanding shares, a price-to-earnings ratio of 32.67, price-to-earnings-growth ratio of 0.72 and a beta of 0.90. The company has a RSI of 56.55, ATR of 5.35 and a volatility of 2.28% this week. COST has a 52 week low price of $175.79 and a 52 week high price of $245.16.
Investors have identified the tech company Costco Wholesale Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 102.07B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Costco Wholesale Corporation (COST) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For COST, the company has in raw cash 6.06 billion on their books with 1.62 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 20.29 billion total, with 4 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
COST were able to record 0 as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 5.77 billion. In cash movements, the company had a total of 0 as operating cash flow.
Potential earnings growth for Costco Wholesale Corporation (COST)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Costco Wholesale Corporation recorded a total of 44.41 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.05% coming in sequential stages and their sales for the third quarter increasing by 0.27%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 38.67 billion trying to sell their products during the last quarter, with the result yielding a gross income of 5.74 billion. This allows shareholders to hold on to 437.68M with the revenue now reading 2380 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.71 cents a share).
Is the stock of COST attractive?
Having a look at the company’s valuation, the company is expected to record 8.31 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on COST sounds very interesting.
In related news, President and CEO JELINEK W CRAIG sold 11,000 shares of the company’s stock in a transaction that recorded on October 30th, 2018. The sale was performed at an average price of 225.60, for a total value of 2,481,626. As the sale deal closes, the Executive VP and CFO JELINEK W CRAIG now sold 4,163 shares of the company’s stock, valued at 945,940. Also, President and CEO JELINEK W CRAIG sold 11,500 shares of the company’s stock in a deal that was recorded on October 29th, 2018. The shares were sold at an average price of 221.52 per share, with a total market value of 322,958. Following this completion of acquisition, the Director Emeritus now holds 2,049 shares of the company’s stock, valued at 458,976. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.
10 out of 29 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on Costco Wholesale Corporation stock. 0 analysts has assigned a Sell rating on the COST stock. The 12-month mean consensus price target for the company’s shares has been set at $244.61.