Costco Stock Nearing Split Territory
Strong Growth, High Price Point
Costco Wholesale Corporation (COST) stock has been on a steady upward trend in recent years, reaching an all-time high of $740 per share. This is significantly higher than the range at which it last split its stock in 2015 ($150-$170 per share).
Growth and Subscription Fees
The company's growth has remained strong even after the pandemic, with revenue and earnings continuing to rise. This growth is expected to continue, and analysts anticipate that Costco will soon raise its subscription fees, which could further boost its profitability.
Stock Split Candidates
With such a high stock price, Costco has become a prime candidate for a stock split. A stock split involves dividing each existing share into multiple shares, reducing the price per share while maintaining the total market capitalization. This makes it more accessible to a broader range of investors.
Recent Precedents
Investors have recently witnessed stock splits from other large companies, such as Nvidia and Chipotle. These splits have generally been well-received by shareholders, as they provide more liquidity and make the stock more affordable for smaller investors.
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