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

On Monday, Costco Wholesale Co. (NASDAQ:COST) saw its stock price dip by 0.5%, reflecting a lower trading price during midday sessions. The share price reached a low of $884.78 and closed at $884.95. During this trading session, approximately 129,662 shares were exchanged, showcasing a significant decline of 93% compared to the average daily volume of 1,936,524 shares. The previous closing price was $889.56.

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Recent Analyst Ratings

Several analysts have recently updated their ratings for Costco Wholesale stock. Oppenheimer raised its price target from $955.00 to $980.00, endorsing an "outperform" rating in a note published on October 10th. Melius Research began covering the stock on September 23rd, assigning it a "hold" rating with a target price of $950.00. Similarly, Telsey Advisory Group reiterated a "outperform" rating, while setting a price target at $1,000.00 also on October 10th. Tigress Financial maintained a "buy" rating with a more optimistic price target of $1,065.00. StockNews.com, however, downgraded the stock from a "buy" to a "hold" rating on September 27th. Currently, 10 analysts rate Costco stock as a hold, while 18 provide a buy rating, meaning the overall consensus is a moderate buy with an average target price of $890.07, according to data from MarketBeat.com.

Costco's Stock Movement

The stock's performance shows that Costco has a fifty-day moving average of $889.26 and a two-hundred day moving average of $833.95. The company’s debt-to-equity ratio stands at 0.25, with a current ratio of 0.97 and a quick ratio of 0.44. As of now, Costco boasts a market capitalization of $394.01 billion, a price-to-earnings (P/E) ratio of 54.83, a price/earnings-to-growth (PEG) ratio of 5.48, and a beta of 0.80.

In its latest earnings report on September 26th, Costco announced earnings per share (EPS) of $5.15 for the quarter, surpassing the consensus estimate of $5.05 by $0.10. The company achieved a return on equity of 31.05% and a net margin of 2.90%. Its revenue for the quarter was reported at $79.70 billion, slightly below analyst predictions of $79.91 billion. In the same period last year, Costco reported $4.86 in earnings per share, showing a year-over-year revenue increase of 1.0%. Analysts project that Costco Wholesale will report an EPS of 17.74 for the current fiscal year.

Dividend Information

Costco has announced a quarterly dividend scheduled for payment on November 15th. Shareholders of record as of November 1st will receive a dividend of $1.16 per share, equating to an annualized dividend of $4.64 and a yield of 0.52%. The company currently maintains a dividend payout ratio of 28.75%.

Insider Selling Activity

In recent insider activity, EVP Russell D. Miller sold 4,400 shares of Costco stock on October 11th for an average price of $891.15, totaling over $3.92 million. Post-transaction, he holds 10,202 shares valued around $9.09 million. Additionally, another EVP, Richard A. Galanti, sold 500 shares on August 15th at an average price of $874.05, totaling $437,025. After the sale, he continues to own 22,900 shares valued approximately at $20.02 million. During the past quarter, insiders have sold a total of 11,224 shares valued at nearly $9.97 million, which represents 0.18% ownership by company insiders.

Institutional Investors' Activity

Recent trading activity by institutional investors shows that Whittier Trust Co. of Nevada Inc. increased its Costco holdings by 5.6% during the third quarter, now owning 31,656 shares valued at $28.06 million after adding 1,680 shares. Other firms, like Stewardship Advisors LLC and Western Financial Corp CA, have also modified their positions, contributing to a total of 68.48% institutional ownership of Costco’s stock.

About Costco Wholesale

Costco Wholesale Corporation operates membership warehouses in countries including the United States, Canada, and several others around the world. The company provides both branded and private-label products across various merchandise categories.

Investing Considerations

Before making investment decisions, potential investors should be aware of analyst recommendations and market trends surrounding Costco. While current ratings indicate a moderate buy, some analysts suggest looking into other stocks that may offer better opportunities in the current market climate.

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