Costco Wholesale (NASDAQ:COST) Stock Price Falls 0.3% - Here's What Happened

Costco Wholesale Co. (NASDAQ:COST) experienced a slight decline in its stock price, dropping by 0.3% during mid-day trading on Tuesday. The stock reached a low point of $970.76 before closing at $971.83. Trading volume was notably lower, with 367,162 shares exchanged, down 81% from the average daily volume of 1,919,794 shares. Previously, the stock had closed at $975.00, indicating a shift in investor sentiment.

Analyst Ratings Changes

Recently, various equities research analysts have shared their perspectives on Costco’s stock. StockNews.com downgraded Costco Wholesale from a "buy" to a "hold" rating in a report released on September 27th. In contrast, Telsey Advisory Group maintained an "outperform" rating while setting a price target of $1,000.00 for the shares. BMO Capital Markets increased their price target from $980.00 to $1,075.00, also giving Costco an "outperform" rating on November 18th. Meanwhile, Wells Fargo & Company raised their price target from $800.00 to $850.00 and rated Costco's stock as "equal weight." Truist Financial, however, shifted their recommendation from "buy" to "hold," establishing a price objective of $873.00. Overall, ten analysts currently hold a "hold" rating on Costco shares, while eighteen analysts recommend buying. The average consensus rating among analysts is a "Moderate Buy" with a price target of approximately $908.81, according to MarketBeat data.

Costco Wholesale Overview

Financial metrics reveal that Costco operates with a debt-to-equity ratio of 0.25, a current ratio of 0.97, and a quick ratio of 0.44. The company boasts a market capitalization of $433.50 billion and a price-to-earnings ratio of 58.65, accompanied by a P/E/G ratio of 6.00 and a beta of 0.82. Its 50-day and 200-day simple moving averages stand at $907.62 and $872.68, respectively.

Earnings Highlights

Costco Wholesale announced its earnings results on September 26th, reporting earnings per share (EPS) of $5.15, which exceeded analysts' expectations of $5.05 by $0.10. The company’s revenue for the quarter reached $79.70 billion, slightly below the consensus estimate of $79.91 billion. With a net margin of 2.90% and a return on equity of 31.05%, Costco’s revenue increased by 1.0% relative to the same quarter last year. During the same period last year, the company had posted an EPS of $4.86. Looking ahead, analysts predict that Costco will achieve an EPS of $17.75 for the current fiscal year.

Costco Dividend Announcement

In addition to its earnings report, Costco announced a quarterly dividend of $1.16, which was paid out on November 15th. The dividend was distributed to stockholders recorded as of November 1st, marking an annual dividend yield of 0.47% based on an annual payout of $4.64. Presently, the company’s payout ratio stands at 28.00%.

Insider Activity

Recent insider trading includes transactions by Costco executives. Claudine Adamo, EVP, sold 3,200 shares on September 30th at an average price of $888.99, accumulating about $2.84 million from the sale. This transaction reduced her stakes in the company by 27.05%. Following that, Richard A. Galanti, another EVP, sold 1,416 shares on October 24th, at an average price of $894.68, totaling approximately $1.27 million. Currently, corporate insiders hold about 0.18% of the company’s shares.

Institutional Trading

On the institutional side, several large investors have recently adjusted their positions in Costco. Garde Capital Inc. increased its stake by 4.3%, owning 3,954 shares valued at about $3.51 million after acquiring 162 shares in the last quarter. Similarly, Inspire Trust Co. N.A. boosted its holdings by 12.8%, now owning 2,700 shares valued at approximately $2.39 million. Other institutions, such as Old North State Trust LLC, Tidal Investments LLC, and Blankinship & Foster LLC, also made incremental increases in their shares during the same period. In total, institutional investors and hedge funds own around 68.48% of Costco's stock.

About Costco Wholesale

Costco Wholesale Corporation, through its subsidiaries, operates a chain of membership warehouses across various countries, including the United States, Puerto Rico, Canada, and several others. The company offers a diverse assortment of branded and private-label products in multiple merchandise categories.

Costco, Stock, Trading