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

On Wednesday, Costco Wholesale Co. (NASDAQ:COST) saw its stock price decrease by 0.2% during mid-day trading. The shares fell to a low of $964.06 before recovering slightly to a trading price of $969.15. In total, 291,782 shares were exchanged, marking a significant drop of 85% from the regular session volume, which averages around 1,924,903 shares. The stock closed the previous day at $971.50.

Analyst Updates

Recent Analyst Ratings

Analysts have been active in their evaluation of COST shares. On September 24th, Truist Financial downgraded the stock from a "buy" to a "hold" rating, setting a target price of $873.00. Roth Mkm, on the other hand, raised their target price from $676.00 to $755.00 with a "neutral" rating on September 27th. Additionally, Redburn Atlantic changed their stance from "buy" to "neutral," increasing their price target from $860.00 to $890.00 on September 10th. Stifel Nicolaus lifted their target from $925.00 to $935.00, issuing a "buy" rating on October 10th. Deutsche Bank Aktiengesellschaft also raised its target slightly from $925.00 to $927.00 while maintaining a "buy" rating as of August 8th. Currently, ten analysts rate the stock as a hold, while eighteen have issued buy ratings. MarketBeat indicates a consensus rating of "Moderate Buy" with an average target price of $908.81.

Costco's Recent Performance

Trading Activity

Costco stock has shown varied movement, currently having a market capitalization of $425.81 billion. The company’s financial ratios reflect a current ratio of 0.97, a quick ratio of 0.44, and a low debt-to-equity ratio of 0.25. Currently, the stock holds a P/E ratio of 58.49 and a PEG ratio of 5.93, with a beta of 0.80. Its 50-day and 200-day simple moving averages stand at $903.72 and $868.77, respectively.

The company’s latest earnings report released on September 26th revealed earnings of $5.15 per share (EPS) for the quarter, surpassing analysts’ expectations of $5.05 by $0.10. However, the revenue reported was $79.70 billion, a slight miss compared to the estimated $79.91 billion. When looking at past performance, this represents a 1.0% increase in revenue year-over-year, with the previous year's EPS at $4.86. Analysts are predicting a total EPS of 17.75 for the current fiscal year.

Dividends and Insider Activity

Dividend Announcement

In addition to stock performance, Costco announced a quarterly dividend that was paid to shareholders on November 15th. Shareholders registered by November 1st received a dividend of $1.16, translating to an annualized dividend of $4.64, yielding 0.48%. The company's dividend payout ratio stands at 28.00%.

Insider Transactions

Recent insider trading activity includes EVP Claudine Adamo selling 3,200 shares at about $888.99 each, totaling approximately $2,844,768.00. Following this sale, she retains 8,630 shares, valued at around $7,671,983.70, marking a 27.05% reduction in her ownership. Another executive, EVP Russell D. Miller, sold 4,400 shares at an average of $891.15, making a total of around $3,921,060.00. Post-sale, he holds 10,202 shares worth about $9,091,512.30, with a 30.13% decrease in his stake. In the past quarter, insiders sold 11,016 shares worth a total of $9,826,115, with corporate insiders owning only 0.18% of the company’s shares.

Institutional Interest

Hedge Fund Activity

Hedge funds have also shown considerable interest in Costco stock. New investors include RPg Family Wealth Advisory LLC, which took a new position in the third quarter worth roughly $29,000. Financial Connections Group Inc. significantly increased its stake by 557.1%, now holding 46 shares valued at $39,000 after adding 39 shares. Other notable moves include a new stake worth approximately $48,000 from Bank & Trust Co, and Ruedi Wealth Management Inc. enhancing its holdings by 73.5% to 59 shares valued at $50,000. Currently, institutional investors own about 68.48% of Costco Wholesale's stocks.

Company Overview

About Costco Wholesale

Costco Wholesale Corporation operates a chain of membership warehouses across multiple countries including the U.S., Canada, Mexico, Japan, and various European nations. The company offers a diverse selection of goods, both branded and private-label, across numerous merchandise categories.

Costco, Stock, Market