Costco Split History: Is it Time for Costco to Split Again?

Core Viewpoint - Costco Wholesale has a history of stock splits that have contributed to its strong market performance and accessibility for investors, leading to speculation about a potential future split due to its high current stock price [1][12][14] Company History and Stock Splits - Costco has executed several stock splits since going public in 1985, including a notable 2-for-1 split in 2000, aimed at maintaining an affordable share price and attracting retail investors [3][4][6] - The company merged with The Price Club in 1993, enhancing its market position and operational efficiencies, which has been reflected in its stock performance [3] Current Stock Performance - As of June 20, 2024, Costco's stock is trading at approximately $870.75, with a year-to-date increase of nearly 32% and a quarterly revenue of $58.52 billion, showing a 9.1% year-over-year growth [6][7] - The company's membership strategy, with renewal rates exceeding 90%, provides a stable revenue stream despite low margins [6][7] Market Conditions and Trends - Current market trends favor Costco due to retail sector consolidation, the rise of e-commerce, and a focus on sustainability, which aligns with Costco's initiatives [9] - Analysts suggest that a stock split could enhance liquidity and attract more retail investors, as the current share price is considered too high [11][12] Expert Opinions - Financial analysts rate Costco as a Moderate Buy, indicating strong performance and potential benefits from a stock split to broaden its investor base [11][12] - Despite the high share price, management has focused on customer satisfaction rather than share price movements, leading to speculation about the timing of a potential split [13][14]