Overview
- Costco shares, which hit a 52-week high of $1,070.67 on Monday, extended a near 24% year-to-date gain after the company lifted its quarterly dividend 13% to $1.47.
- Oppenheimer raised its price target to $1,160 ahead of results and warned fuel costs could pinch margins in the near term, while noting a potential special dividend or stock split remains a possible catalyst.
- April results showed steady momentum with net sales up 13% year over year, comparable sales up 11.6%, and online sales up 18.8%.
- Big investors kept adding in Q4 as ProShare Advisors increased its Costco stake by 38.6% to 769,624 shares and total institutional ownership reached about 68%.
- The company reports fiscal Q3 after the close on May 28, with stable membership renewal near 89% and a price-to-earnings ratio in the mid-50s focusing attention on execution.