Cramer Says 'Buy Some' of Costco as Institutions Add Shares and Valuation Stays Elevated

Overview

• On June 10 Jim Cramer told a Mad Money caller to "buy some" Costco shares now while hoping for a modest pullback to get better value.
• Several funds increased positions, with Motley Fool Asset Management raising its stake by 20.8%, and institutional ownership now about 68.48% of shares.
• The company reported on May 28 revenue of $70.53 billion that beat estimates while earnings per share missed by one cent at $4.93.
• Costco raised its quarterly dividend to $1.47 per share, paid May 15, and also trimmed prices on a handful of Kirkland Signature items.
• Analysts maintain mostly positive ratings with an average price target near $1,060 even as the stock trades around $968 and roughly 47 times earnings, a gap that keeps investors focused on valuation and execution risks such as fuel costs and membership trends.