Russell D. Miller, Senior Executive Vice President of Costco Wholesale Corp (NASDAQ:COST), recently sold 4,400 shares of the company's common stock. The shares were sold at a weighted average price of $891.152, totaling approximately $3.92 million. Following this transaction, Miller holds 10,202 shares indirectly through the Miller Family Trust and 1.01 shares directly. This sale was executed on October 11, 2024, as per the latest SEC filing.
In other recent news, Costco Wholesale reported a 9% increase in net income to $2.354 billion and a 1% rise in net sales to $78.2 billion in its Fourth Quarter 2024 Earnings Call. E-commerce sales saw a significant 18.9% increase, while September's net sales rose by 9% to reach $24.62 billion. Analyst firms Oppenheimer, Baird, and Evercore ISI have raised their price targets for Costco to $980, $975, and $990 respectively, maintaining an Outperform rating based on strong sales performance. DA Davidson and Citi, however, have maintained Neutral stances with consistent price targets of $880 and $800 respectively. In light of the ongoing dockworker strike at East Coast and Gulf Coast ports, Costco has taken proactive measures to navigate potential disruptions, a move that has instilled confidence in several analyst firms. These are among the recent developments shaping the trajectory of Costco Wholesale.
InvestingPro Insights
As Russell D. Miller reduces his stake in Costco Wholesale Corp (NASDAQ:COST), investors might be curious about the company's current financial standing and market position. According to InvestingPro data, Costco boasts a substantial market capitalization of $396.24 billion, underscoring its position as a major player in the retail industry.
The company's financial health appears robust, with revenue reaching $254.45 billion in the last twelve months as of Q4 2024. This represents a 5.02% growth, indicating steady expansion despite challenging market conditions. Costco's profitability is also noteworthy, with a gross profit of $32.09 billion over the same period.
InvestingPro Tips highlight Costco's strong financial position, noting that the company "holds more cash than debt on its balance sheet." This financial stability is further reinforced by the fact that Costco "has maintained dividend payments for 21 consecutive years," demonstrating a commitment to shareholder returns.
However, investors should be aware that Costco is "trading at a high earnings multiple" and has a P/E ratio of 53.67. This valuation metric suggests that the stock may be priced at a premium compared to its earnings, which could be a consideration for value-oriented investors.
It's worth noting that Costco has shown impressive stock performance, with a one-year price total return of 61.56% as of the latest data. This aligns with the InvestingPro Tip indicating a "high return over the last year."
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for Costco, providing a more comprehensive view of the company's prospects and potential risks.
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