Costco (COST) Hits $1,000-Plus; Investors Renew Stock Split Talk
Costco Wholesale (COST, Financials) is back in the spotlight after its stock climbed above $1,000, sparking fresh debate over whether the warehouse retail giant might finally split its shares. The company hasn't done so since a two-for-one split in 2000.
Warning! GuruFocus has detected 7 Warning Sign with COST.
The stock has gained roughly 25% over the past 12 months and closed Friday near $1,040, joining a short list of S&P 500 companies with four-digit share prices. Oppenheimer analysts reiterated their bullish stance last week, raising the prospect of a potential split as a near-term catalyst. They assigned a $1,130 price target, above the Wall Street consensus.
Costco's management hasn't ruled it out. CEO Ron Vachris said there was nothing to report at the company's January shareholder meeting. Chief Financial Officer Gary Millerchip said on a December earnings call that the availability of fractional shares has reduced the need for a split, but acknowledged it could make the stock feel more accessible to retail investors and employees.
Despite the stock's strong performance, Costco remains one of the few companies of its size not to have split shares in over two decades, even as competitors like Walmart (WMT, Financials), and Amazon (AMZN, Financials) have done so more recently.
The company did not respond to media inquiries about a potential split.
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This article first appeared on GuruFocus.
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