Costco Wholesale (NASDAQ:COST) Stock Price Down 0.5% - What's Next?

On Monday, Costco Wholesale Co. (NASDAQ:COST) saw its stock price decrease by 0.5% during mid-day trading. The stock reached a low of $884.78 before ending the day at $884.95. A total of 129,662 shares were exchanged during this trading session, significantly lower than the average volume of 1,936,524 shares. The previous closing price for the stock was $889.56.

Costco Wholesale Alerts:

Analyst Ratings Updates

Recently, various research analysts have provided their insights regarding Costco Wholesale's stock. Oppenheimer raised their price target for the stock from $955.00 to $980.00 and assigned an "outperform" rating in a note dated October 10. Melius Research also began covering the stock with a "hold" rating and set a price target of $950.00 on September 23. On the same date, the Telsey Advisory Group confirmed an "outperform" rating with a $1,000.00 target price. Moreover, Tigress Financial reiterated a "buy" rating with a price goal of $1,065.00. In contrast, StockNews.com downgraded its rating from "buy" to "hold" on September 27. Overall, market data indicates that there are ten analysts with a hold rating and eighteen analysts that have given a buy rating for the stock, leading to an average rating categorized as a "Moderate Buy" with a target price of $890.07 according to MarketBeat.com.

Costco Wholesale Stock Performance Overview

The stock of Costco Wholesale is currently showing a fifty-day moving average price of $889.26 and a two-hundred-day moving average price of $833.95. Its financial metrics include a debt-to-equity ratio of 0.25, a current ratio of 0.97, and a quick ratio of 0.44. Costco Wholesale boasts a market capitalization of $394.01 billion and presents a P/E ratio of 54.83 along with a PEG ratio of 5.48. Additionally, the firm's beta stands at 0.80.

Costco recently announced its earnings results for the quarter ending September 26, reporting earnings per share (EPS) of $5.15, surpassing the consensus estimate of $5.05 by $0.10. The company reported a return on equity of 31.05% and maintained a net margin of 2.90%. Revenue for the quarter reached $79.70 billion, slightly below the projected $79.91 billion. In the same quarter last year, the company recorded an EPS of $4.86, marking a year-over-year revenue increase of 1.0%. Forecasts suggest that Costco will report an EPS of 17.74 for the current fiscal year.

Costco Wholesale Dividend Announcement

The company has declared a quarterly dividend of $1.16 per share, which is set to be paid on November 15 to shareholders who hold shares as of November 1. This dividend equates to an annualized amount of $4.64, yielding approximately 0.52%. Currently, Costco's dividend payout ratio is at 28.75%.

Insider Activity Reports

Regarding insider trading, EVP Russell D. Miller recently sold 4,400 shares at an average price of $891.15, totaling $3,921,060.00 from the transaction. Post-sale, he retains ownership of 10,202 shares valued at about $9,091,512.30, showing a slight decrease in his holding percentage. Another insider, EVP Richard A. Galanti, sold 500 shares on August 15 at an average price of $874.05, amounting to $437,025.00. After this sale, he possesses 22,900 shares worth approximately $20,015,745. These actions reflect the broader trend where insiders sold a total of 11,224 shares valued at nearly $10 million in the last quarter, with insiders currently owning around 0.18% of the company's stock.

Institutional Trading Activity

Recent institutional trading reveals that hedge funds have been adjusting their stakes in Costco. Whittier Trust Co. of Nevada Inc. increased its stake by 5.6% in the third quarter and currently holds 31,656 shares worth about $28,063,000. In the same quarter, Stewardship Advisors LLC entered a new stake valued at approximately $473,000. Meanwhile, Western Financial Corp CA expanded its position by 63.4%, acquiring 2,329 shares valued at $2,065,000. Currently, institutional investors own around 68.48% of Costco's stock.

About Costco Wholesale

Costco Wholesale Corporation operates a network of membership warehouses across various countries including the United States, Canada, Mexico, Japan, and others. The company provides a range of branded and private-label products across multiple merchandise categories.

Summary

In summary, Costco's stock price faced a 0.5% decline recently, prompting analysts to reconsider their ratings and target prices. While some analysts have boosted their price targets, the overall sentiment remains cautiously optimistic. As Costco continues to deliver strong earnings and dividend payouts, investors may want to monitor the stock closely for potential investment opportunities.

Costco, Stock, Earnings