Price Action Alert: Is Costco Wholesale Corporation’s Fuel Running High? The Stock Just Gapped Up

Price Action Alert: Is Costco Wholesale Corporation's Fuel Running High? The Stock Just Gapped Up

The stock of Costco Wholesale Corporation (NASDAQ:COST) gapped up by $1.91 today and has $213.51 target or 40.00% above today’s $152.51 share price. The 9 months technical chart setup indicates low risk for the $65.95B company. The gap was reported on Oct, 1 by If the $213.51 price target is reached, the company will be worth $26.38B more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. The stock increased 3.40% or $5.02 during the last trading session, hitting $152.51. About 7.32 million shares traded hands or 215.52% up from the average. Costco Wholesale Corporation (NASDAQ:COST) has risen 1.65% since February 29, 2016 and is uptrending. It has underperformed by 8.77% the S&P500.

Analysts await Costco Wholesale Corporation (NASDAQ:COST) to report earnings on October, 4. They expect $1.73 earnings per share, 0.00% or $0.00 from last year’s $1.73 per share. COST’s profit will be $748.11 million for 22.04 P/E if the $1.73 EPS becomes a reality. After $1.24 actual earnings per share reported by Costco Wholesale Corporation for the previous quarter, Wall Street now forecasts 39.52% EPS growth.

Costco Wholesale Corporation (NASDAQ:COST) Ratings Coverage

Out of 20 analysts covering Costco Wholesale (NASDAQ:COST), 14 rate it a “Buy”, 0 “Sell”, while 6 “Hold”. This means 70% are positive. Costco Wholesale has been the topic of 39 analyst reports since August 24, 2015 according to StockzIntelligence Inc. The stock of Costco Wholesale Corporation (NASDAQ:COST) earned “Buy” rating by Sterne Agee CRT on Friday, October 2. Barclays Capital maintained Costco Wholesale Corporation (NASDAQ:COST) on Friday, September 23 with “Equal-Weight” rating. On Friday, September 30 the stock rating was maintained by RBC Capital Markets with “Outperform”. The firm has “Peer Perform” rating by Wolfe Research given on Friday, April 29. The stock of Costco Wholesale Corporation (NASDAQ:COST) earned “Buy” rating by UBS on Monday, October 26. RBC Capital Markets maintained Costco Wholesale Corporation (NASDAQ:COST) rating on Friday, May 27. RBC Capital Markets has “Outperform” rating and $173 price target. The stock of Costco Wholesale Corporation (NASDAQ:COST) has “Buy” rating given on Monday, August 24 by Vetr. The firm earned “Neutral” rating on Tuesday, November 3 by Northcoast. The company was maintained on Wednesday, September 2 by Piper Jaffray. The stock of Costco Wholesale Corporation (NASDAQ:COST) earned “Buy” rating by Goldman Sachs on Wednesday, June 1.

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 increased to 1.01 in 2016 Q2. Its up 0.06, from 0.95 in 2016Q1. The ratio increased, 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.
Panagora Asset last reported 41,198 shares in the company. Gabelli Funds Limited Co holds 0.26% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST) for 280,962 shares. Marble Harbor Inv Counsel Limited Liability Com holds 2,500 shares or 0.1% of its portfolio. First Republic Inv Mngmt holds 0.39% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST) for 254,733 shares. First Retail Bank Of Omaha owns 79,692 shares or 0.93% of their US portfolio. Archon Cap Management Ltd Liability Co last reported 41,100 shares in the company. Liberty Mutual Asset, a Massachusetts-based fund reported 29,357 shares. Hanson & Doremus Invest Management has invested 1.05% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST). The Wisconsin-based Winch Advisory Services Ltd Liability Corporation has invested 0.01% in Costco Wholesale Corporation (NASDAQ:COST). Duncker Streett And holds 1,562 shares or 0.09% of its portfolio. Pecaut holds 2.17% or 13,335 shares in its portfolio. Garrison Bradford And Associate Inc accumulated 38,000 shares or 5.85% of the stock. Baker Avenue Asset Mngmt Ltd Partnership has 3,533 shares for 0.08% of their US portfolio. Prudential Plc holds 0.01% of its portfolio in Costco Wholesale Corporation (NASDAQ:COST) for 12,737 shares. Caldwell Orkin Inc last reported 28,490 shares in the company.

Insider Transactions: Since March 31, 2016, the stock had 0 buys, and 6 selling transactions for $7.33 million net activity. MEISENBACH JOHN W sold $962,347 worth of stock. McKay John D sold 7,500 shares worth $1.25M. 6,180 Costco Wholesale Corporation (NASDAQ:COST) shares with value of $1.03 million were sold by RUCKELSHAUS JILL S. 2,400 shares were sold by GALANTI RICHARD A, worth $400,982 on Monday, July 11. SCHUTT DOUGLAS W also sold $2.44M worth of Costco Wholesale Corporation (NASDAQ:COST) shares.

More notable recent Costco Wholesale Corporation (NASDAQ:COST) news were published by: which released: “Costco Wholesale Corporation Responds to Partial Verdict” on September 29, 2016, also with their article: “Better Buy: Costco Wholesale Corporation vs. Amazon” published on September 15, 2016, published: “How Risky Is Costco Wholesale Corporation?” on September 05, 2016. More interesting news about Costco Wholesale Corporation (NASDAQ:COST) were released by: and their article: “Must Watch Stocks for September 30, 2016” published on September 30, 2016 as well as‘s news article titled: “2 Reasons Costco Wholesale Corporation Stock Could Fall” with publication date: September 12, 2016.

COST Company Profile

Costco Wholesale Corporation (Costco), incorporated on May 12, 1987, is engaged in the operation of membership warehouses in the United States (U.S.) and Puerto Rico, Canada, United Kingdom (U.K.), Mexico, Japan, Australia, Spain, and through majority-owned subsidiaries in Taiwan and Korea. As of August 31, 2014, the Company operated 663 membership warehouses. The Company’s average warehouse is approximately 144,000 square feet. The Company’s warehouses generally operate on a seven-day, 69-hour week. The Company’s product categories include Food, Sundries, Hardlines, Fresh Food, Softlines, Ancillary and Other.

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