Raymond James Upgrades Costco to Buy

By Austin Angelo

Raymond James analyst Budd Bugatch upgraded Costco (NASDAQ: COST) to Buy today. The company’s shares closed last Friday at $157.13.

According to TipRanks.com, Bugatch is a 4-star analyst with an average return of 7.4% and a 57.1% success rate. Bugatch covers the Services sector, focusing on stocks such as Restoration Hardware Holdings Inc, Beacon Roofing Supply, and Wal-Mart Stores Inc.

Currently, the analyst consensus on Costco is Moderate Buy and the average price target is $183.90, representing a 17.0% upside.

In a report issued on June 20, Northcoast Research also upgraded the stock to Buy with a $190 price target.

Based on Costco’s latest earnings report for the quarter ending April 30, the company posted quarterly revenue of $28.86 billion and quarterly net profit of $700 million. In comparison, last year the company earned revenue of $26.77 billion and had a net profit of $545 million.

Based on the recent corporate insider activity of 89 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2017, James Sinegal, a Director at COST sold 100,000 shares for a total of $16,635,000.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Costco Wholesale Corp. operates membership warehouses based on the concept that offering members low prices on a limited selection of nationally branded and select private-label products in a wide range of merchandise categories. It operates warehouses in the U.S., Canada, the United Kingdom, Japan and Australia and through majority-owned subsidiaries in Taiwan and Korea. The firm warehouses present exclusive product category selections to be found under a single roof, which include appliances, auto and tires, baby, kids and toys, clothing and handbags, computers and printers, electronics, food and gift baskets, funeral, furniture, gift cards, tickets & floral, hardware health & beauty, home & decor, jewelry & watches, office products, patio, outdoor & pets, sports & fitness, travel & luggage. It also provides ancillary and other services that include gas stations, pharmacy, food court, optical, one-hour photo, hearing aid and travel. The company was founded by James D. Sinegal and Jeffrey H. Brotman in 1983 and is headquartered in Issaquah, WA.,000F9X-E