Costco Wholesale (NASDAQ:COST) Stock Price Down 0.2% - Here's Why

On Wednesday, Costco Wholesale Co. (NASDAQ:COST) experienced a slight drop in its stock price, falling by 0.2% during mid-day trading. The shares reached a low of $964.06 before ultimately trading at $969.15. In total, 291,782 shares changed hands, which is a significant decrease of 85% from the average trading volume of 1,924,903 shares. The previous closing price for the stock was $971.50.

Analysts Review Costco’s Performance

Analyst Upgrades and Downgrades

Recently, several analysts have shared their views on Costco's stock. Truist Financial has downgraded the stock from a "buy" rating to a "hold" rating, with a new target price set at $873.00 in a research note dated September 24. Additionally, Roth MKM revised their price target from $676.00 to $755.00, while giving the stock a "neutral" rating in a note published on September 27. Meanwhile, Redburn Atlantic adjusted their rating from "buy" to "neutral" and raised their price objective from $860.00 to $890.00 on September 10. Stifel Nicolaus increased their target price from $925.00 to $935.00, maintaining their "buy" rating, as highlighted in a note available from October 10. Lastly, Deutsche Bank Aktiengesellschaft boosted its price target from $925.00 to $927.00, reiterating a "buy" rating in an August 8 report. Currently, there are ten analysts who rate Costco's stock as a hold, while eighteen recommend it as a buy. MarketBeat's data shows a consensus rating of "Moderate Buy" with an average target price of $908.81.

Costco Financial Metrics

Costco Wholesale Trading Down 1.1%

The company is currently reporting a current ratio of 0.97, a quick ratio of 0.44, and a debt-to-equity ratio of 0.25. The market capitalization of Costco Wholesale is approximately $425.81 billion with a price-to-earnings (P/E) ratio of 58.49. Additionally, the firm shows a PEG ratio of 5.93 and a beta of 0.80. Over the past 50 days, the stock's simple moving average stands at $903.72, while the 200-day moving average is $868.77.

Costco revealed its latest earnings results on September 26, where it reported earnings per share (EPS) of $5.15 for the quarter, exceeding analysts' expectations of $5.05 by $0.10. The company achieved a return on equity of 31.05% and a net margin of 2.90%. For the quarter, Costco's revenue reached $79.70 billion, slightly missing the analyst estimate of $79.91 billion. In the same quarter last year, Costco reported an EPS of $4.86, indicating a year-over-year revenue growth of 1.0%. Analysts project that Costco Wholesale Co. will report earnings of 17.75 per share for the current fiscal year.

Recent Dividend Announcement

Costco Wholesale Announces Dividend

The company recently declared a quarterly dividend, which was paid out on November 15. Shareholders who were on record as of November 1 received a dividend of $1.16. This results in an annualized dividend of $4.64, providing a yield of 0.48%. The ex-dividend date was set for November 1, and Costco Wholesale's dividend payout ratio sits at 28.00%.

Insider Sales Activity

Insider Activity

In related news, Claudine Adamo, an executive vice president, sold 3,200 shares of Costco in a transaction on September 30 at an average price of $888.99, totaling approximately $2.84 million. Following this sale, Adamo owns 8,630 shares valued at about $7.67 million, marking a decrease of 27.05% in ownership. Another executive, Russell D. Miller, sold 4,400 shares on October 11 at an average price of $891.15, collecting a total of roughly $3.92 million. After this transaction, Miller holds 10,202 shares valued at approximately $9.09 million, which is a 30.13% decline in their stake. In the last quarter, insiders have sold 11,016 shares worth about $9.83 million, with corporate insiders owning only 0.18% of the company's stock.

Institutional Investment in Costco

Hedge Funds Weigh In On Costco Wholesale

Hedge fund activity regarding Costco has seen some new entries and adjustments. RPg Family Wealth Advisory LLC established a new position in the third quarter valued at around $29,000. In the second quarter, Financial Connections Group Inc. raised its stake by a whopping 557.1%, now owning 46 shares valued at $39,000 after purchasing an additional 39 shares. Bank & Trust Co also entered a new position worth approximately $48,000, and Ruedi Wealth Management Inc. increased its stake by 73.5% during the same period. Finally, Summit Securities Group LLC also took a new position valued at $50,000. Overall, 68.48% of Costco's stock is held by institutional investors.

About Costco Wholesale

Costco Wholesale Company Profile

Costco Wholesale Corporation operates membership warehouses across the globe, including the United States, Puerto Rico, Canada, Mexico, Japan, the UK, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company provides both branded and private-label products across various categories.

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