Costco Stock Inches Higher After December Sales Surge

Deutsche Bank chimed in with a price-target hike as well

Deputy Editor
Jan 7, 2021 at 10:47 AM
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The shares of Costco Wholesale Corporation (NASDAQ:COST) are pivoting higher this morning, up 0.3% at $71.26, after the company reported a 12.3% rise in sales for December to $19.14 billion. Costco's total comparable sales were up 10.7%, topping estimates. As a result, Deutsche Bank chimed in with a bull note, lifting its price target to $347 from $344. 

The stock has been on a downward trend this week, after running into a familiar rejection area at the $380 mark on Monday. Now, the equity is testing a floor at the 60-day moving average, while the 80-day moving average sits just below as a potential net on the charts as well. Year-over-year COST is up nearly 30%. 

Circling back to analyst sentiment, the majority of  those in coverage are already bullish on Costco stock. Seventeen consider it  a "buy" or better, compared to six "hold" ratings. Plus, coming into today, the 12-month consensus price target of $400.37 stood at an 8.2% premium to last night's close. 

The options pits, on the other hand, have rarely been more bearish. This is per COST's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 97% of readings from the past year. This suggests a healthier-than-usual appetite for long calls of late. 

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