Costco Wholesale (NASDAQ:COST) Stock Price Down 1.1% - Here's Why

Key Points

• Costco Wholesale's stock price fell by 1.1% to around $952.36 during mid-day trading, with a volume decline of 16% compared to its average daily trading volume.
• Analysts have a consensus rating of "Moderate Buy" for Costco Wholesale, with a price target averaging $1,056.67, and several firms, including Morgan Stanley, have recently increased their price objectives significantly.
• The company announced a quarterly dividend of $1.30, resulting in an annualized dividend yield of 0.5% and a dividend payout ratio of 29.50%.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report)'s share price dropped 1.1% during trading on Thursday . The stock traded as low as $950.67 and last traded at $952.36. Approximately 1,839,260 shares changed hands during mid-day trading, a decline of 16% from the average daily volume of 2,187,328 shares. The stock had previously closed at $963.03.

Analysts Set New Price Targets

Several brokerages have commented on COST. Erste Group Bank lowered Costco Wholesale from a "buy" rating to a "hold" rating in a research note on Tuesday, August 5th. Evercore ISI reduced their price target on Costco Wholesale from $1,075.00 to $1,060.00 and set an "outperform" rating for the company in a report on Tuesday, June 17th. Stifel Nicolaus set a $1,035.00 price target on Costco Wholesale in a report on Thursday, May 29th. Morgan Stanley increased their price target on Costco Wholesale from $1,150.00 to $1,225.00 and gave the company an "overweight" rating in a report on Friday, May 30th. Finally, Loop Capital reduced their target price on Costco Wholesale from $1,115.00 to $1,110.00 and set a "buy" rating on the stock in a report on Thursday, May 29th. Seventeen analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $1,056.67.

Costco Wholesale Trading Down 0.1%

The company has a market capitalization of $422.07 billion, a price-to-earnings ratio of 53.98, a PEG ratio of 5.42 and a beta of 0.97. The firm has a 50-day moving average price of $958.35 and a 200-day moving average price of $972.82. The company has a current ratio of 1.02, a quick ratio of 0.52 and a debt-to-equity ratio of 0.21.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Friday, August 1st were paid a dividend of $1.30 per share. The ex-dividend date of this dividend was Friday, August 1st. This represents a $5.20 annualized dividend and a dividend yield of 0.5%. Costco Wholesale's dividend payout ratio (DPR) is currently 29.50%.

Insider Buying and Selling at Costco Wholesale

In other news, EVP Teresa A. Jones sold 600 shares of the firm's stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $992.05, for a total transaction of $595,230.00. Following the completion of the sale, the executive vice president directly owned 2,362 shares of the company's stock, valued at $2,343,222.10. This trade represents a 20.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Yoram Rubanenko sold 4,000 shares of the firm's stock in a transaction on Monday, July 14th. The stock was sold at an average price of $974.96, for a total value of $3,899,840.00. Following the sale, the executive vice president directly owned 5,774 shares of the company's stock, valued at approximately $5,629,419.04. This represents a 40.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.18% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Canal Capital Management LLC grew its holdings in shares of Costco Wholesale by 35.6% during the second quarter. Canal Capital Management LLC now owns 880 shares of the retailer's stock valued at $871,000 after buying an additional 231 shares in the last quarter. Migdal Insurance & Financial Holdings Ltd. boosted its position in Costco Wholesale by 26.1% during the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 193 shares of the retailer's stock valued at $191,000 after purchasing an additional 40 shares during the last quarter. NWF Advisory Services Inc. boosted its position in Costco Wholesale by 1.4% during the second quarter. NWF Advisory Services Inc. now owns 21,882 shares of the retailer's stock valued at $21,663,000 after purchasing an additional 296 shares during the last quarter. SevenBridge Financial Group LLC boosted its position in Costco Wholesale by 22.1% during the second quarter. SevenBridge Financial Group LLC now owns 3,403 shares of the retailer's stock valued at $3,373,000 after purchasing an additional 617 shares during the last quarter. Finally, V. M. Manning & CO. Inc. acquired a new stake in Costco Wholesale during the second quarter valued at $364,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

About Costco Wholesale

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.