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

On Wednesday, Costco Wholesale Co. (NASDAQ:COST) saw a slight decline in its stock price, dropping by 0.2% during mid-day trading. The stock traded as low as $964.06 before closing at $969.15. Interestingly, a total of 291,782 shares changed hands during this trading session, reflecting a significant drop of 85% from the usual trading volume, which averages about 1,924,903 shares. The previous day's closing price was $971.50.

Recent Analyst Ratings

Various analysts have recently expressed their opinions regarding COST shares. Truist Financial downgraded the stock from a "buy" rating to a "hold" rating and set a target price of $873.00. On September 27th, Roth MKM increased their target price for Costco shares from $676.00 to $755.00, maintaining a "neutral" rating. Meanwhile, Redburn Atlantic lowered their rating from "buy" to "neutral" and adjusted their price target from $860.00 to $890.00. Stifel Nicolaus also raised their target for Costco from $925.00 to $935.00, maintaining a "buy" rating. Lastly, Deutsche Bank increased their price target from $925.00 to $927.00, also giving the stock a "buy" rating. Currently, ten analysts rate Costco with a hold label, while eighteen have given it a buy rating. According to MarketBeat, Costco holds a consensus rating of "Moderate Buy" with an average target price of $908.81.

Costco's Financial Overview

Costco Wholesale's stock saw a further dip of 1.1% during trading. Financially, the company maintains a current ratio of 0.97, a quick ratio of 0.44, and a modest debt-to-equity ratio of 0.25. The company boasts a market capitalization of $425.81 billion, a P/E ratio of 58.49, and a PEG ratio of 5.93, with a beta of 0.80. The firm has a 50-day simple moving average of $903.72 and a 200-day simple moving average of $868.77.

In recent earnings results reported on September 26th, Costco revealed earnings per share (EPS) of $5.15 for the quarter, which exceeded analysts' expectations of $5.05 by $0.10. The company generated revenue of $79.70 billion for the quarter, slightly below the estimated $79.91 billion, however, this figure represented a 1.0% increase from the same quarter last year.

Dividend Declaration

In addition, Costco announced a quarterly dividend that was paid on November 15th. Shareholders who held shares on November 1st received a dividend of $1.16, which translates to an annualized dividend of $4.64, offering a yield of 0.48%. The ex-dividend date was November 1st, and Costco's dividend payout ratio stands at 28.00%.

Insider Transactions

In related news, the company's EVP Claudine Adamo sold 3,200 shares on September 30th, at an average price of $888.99, resulting in a total transaction of approximately $2.84 million. Following the sale, Adamo holds 8,630 shares valued at around $7.67 million, reflecting a decrease in ownership by 27.05%. Additionally, EVP Russell D. Miller sold 4,400 shares at an average price of $891.15 on October 11th, leading to a transaction worth about $3.92 million. Post-sale, he owns 10,202 shares valued at about $9.09 million, marking a 30.13% drop in his holdings. Over the last quarter, insiders sold a total of 11,016 shares for approximately $9.83 million, and corporate insiders own around 0.18% of the company’s stock.

Institutional Investment Trends

Recent shifts in hedge fund investments have been noted, with RPg Family Wealth Advisory LLC acquiring a new position valued at around $29,000 in the third quarter. Additionally, Financial Connections Group Inc. raised its stake by 557.1%, owning 46 shares currently valued at $39,000 after adding 39 new shares. Bank & Trust Co made a new investment valued at approximately $48,000, while Ruedi Wealth Management Inc. increased their stake by 73.5% in the second quarter. Institutional investors currently own approximately 68.48% of Costco’s stock.

About Costco Wholesale

Costco Wholesale Corporation operates member warehouses globally, including locations in the United States, Canada, Mexico, Japan, the United Kingdom, and other nations. The company offers a wide range of merchandise, featuring both branded and proprietary label products.

Costco, Stock, Earnings, Dividends, Investors