Market News

Costco (NASDAQ:COST) Pleases Shareholders with Rewards Galore

Story Highlights

Costco Wholesale, the membership-only retailer, is wooing shareholders with stock buybacks and dividend rewards. Amid the persistent inflation and unfavorable macro environment, Costco remains one of the favorite cost-saving retail destinations for consumers.

American big box retailer Costco Wholesale Corporation (NASDAQ:COST) announced yesterday that its board of directors has reauthorized a $4 billion share buyback program through January 2027. The new program would replace the current $4 billion stock repurchase program that expires in April 2023. The company bought roughly $1.4 billion worth of stock under the previous program.

Additionally, the board declared a quarterly common dividend of $0.90 per share. The same will be payable on February 17, 2023, to shareholders of record on February 3, 2023. Following the announcement, COST stock drove up 1.3% in the after-hours trading on January 19.

Will Costco Stock Go Back Up?

Wall Street analysts are highly bullish about Costco’s price trajectory. On TipRanks, COST stock commands a Strong Buy consensus rating based on 18 Buys and six Hold ratings. The average Costco Wholesale price target of $552.14 implies 17.6% upside potential from current levels. Meanwhile, COST stock has gained 3.6% since the start of 2023 vis-à-vis losing 10.1% in the past six months.

Join our Webinar to learn how TipRanks promotes Wall Street transparency

Disclosure

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More