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

On Wednesday, Costco Wholesale Co. (NASDAQ:COST - Get Free Report) experienced a decline of 0.2% during mid-day trading. The stock traded as low as $964.06 before closing at $969.15. In total, 291,782 shares were exchanged, marking a significant drop of 85% from the typical session volume of 1,924,903 shares. Previously, the stock closed at $971.50.

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Analyst Ratings Changes

Several analysts have recently weighed in on COST shares. For instance, Truist Financial downgraded Costco from a "buy" to a "hold" and set a target price of $873.00. Meanwhile, Roth MKM elevated their target price from $676.00 to $755.00, changing their rating to "neutral." Additionally, Redburn Atlantic lowered Costco’s rating from "buy" to "neutral" while raising their price objective from $860.00 to $890.00. Stifel Nicolaus increased their target from $925.00 to $935.00, maintaining a "buy" rating, and Deutsche Bank adjusted their target from $925.00 to $927.00, also giving a "buy" rating. Currently, 10 analysts recommend holding the stock and 18 suggest buying it, resulting in a consensus rating of "Moderate Buy" with an average target price of $908.81 according to data from MarketBeat.

Recent Trading Performance

Costco Wholesale saw its stock trading down by 1.1%. Its current ratio stands at 0.97, with a quick ratio of 0.44 and a debt-to-equity ratio of 0.25. The stock boasts a market capitalization of $425.81 billion, a price-to-earnings (P/E) ratio of 58.49, a price/earnings-to-growth (PEG) ratio of 5.93, and a beta of 0.80. Its 50-day simple moving average is $903.72, while the 200-day simple moving average is $868.77.

On September 26, Costco Wholesale released its latest earnings results. The company reported earnings per share (EPS) of $5.15, surpassing analysts' estimates of $5.05 by $0.10. Costco’s return on equity is 31.05%, and it has a net margin of 2.90%. The retailer generated $79.70 billion in revenue for the quarter, slightly below the expected $79.91 billion. This was a year-over-year revenue increase of 1.0% compared to the same quarter last year, when the EPS was $4.86. Analysts project Costco Wholesale to post an EPS of 17.75 for the current year.

Dividend Announcement

Recently, Costco declared a quarterly dividend of $1.16 per share, paid on November 15. Shareholders who were on record as of November 1 received the payment. Annually, this results in a dividend of $4.64, with a yield of 0.48%. The ex-dividend date was also November 1, and Costco’s dividend payout ratio currently stands at 28.00%.

Insider Transactions

In insider news, EVP Claudine Adamo sold 3,200 shares on September 30 for an average price of $888.99, totaling approximately $2.84 million. Following this transaction, she now holds 8,630 shares, valued at around $7.67 million, representing a decrease of 27.05% in her ownership. EVP Russell D. Miller sold 4,400 shares on October 11 at an average price of $891.15, amounting to about $3.92 million. Post-sale, he owns 10,202 shares valued at around $9.09 million, indicating a 30.13% drop in his stake. In the past quarter, insiders have sold 11,016 shares for a combined total of about $9.83 million, with corporate insiders holding only 0.18% of the company’s stock.

Hedge Fund Movements

Recent trading activity by hedge funds reveals that some have acquired or sold shares of Costco. RPg Family Wealth Advisory LLC established a new position valued at around $29,000 in the third quarter. Financial Connections Group Inc. increased its stake by 557.1% in the second quarter, owning 46 shares valued at $39,000 after purchasing an additional 39 shares. Other companies also took new positions, including Bank & Trust Co. with a stake worth approximately $48,000 and Ruedi Wealth Management Inc., which raised its stake by 73.5% to hold 59 shares valued at $50,000. Institutional investors currently own 68.48% of Costco’s stock.

About Costco Wholesale

Costco Wholesale Corporation, along with its subsidiaries, operates membership warehouses across various countries, including the United States, Canada, Mexico, and several others. The company offers a range of merchandise, featuring both branded and private-label products.

Conclusion

Investors interested in Costco Wholesale stock should watch the ongoing changes in ratings, insider activity, and performance metrics, as they can influence future movements in the stock price.

Costco, Stock, Trading