Costco Wholesale (NASDAQ:COST) Shares Down 1.9% - What's Next?

Key Points

• The stock price of Costco Wholesale (NASDAQ:COST) decreased by 1.9%, trading at $960.77, significantly below its previous close of $979.25.
• Analysts have varied opinions; Morgan Stanley raised its target price to $1,225, while Stifel Nicolaus and Telsey Advisory Group set target prices of $1,035 and $1,100, respectively.
• Costco recently announced a quarterly dividend of $1.30 per share, resulting in an annualized yield of 0.5% with a payout ratio of 29.5%.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report)'s stock price dropped 1.9% on Wednesday . The company traded as low as $964.81 and last traded at $960.77. Approximately 408,084 shares traded hands during trading, a decline of 81% from the average daily volume of 2,190,889 shares. The stock had previously closed at $979.25.

Analyst Upgrades and Downgrades

COST has been the topic of several research analyst reports. Evercore ISI reduced their target price on Costco Wholesale from $1,075.00 to $1,060.00 and set an "outperform" rating on the stock in a research note on Tuesday, June 17th. Telsey Advisory Group reissued an "outperform" rating and issued a $1,100.00 target price on shares of Costco Wholesale in a report on Wednesday, August 27th. Erste Group Bank downgraded Costco Wholesale from a "buy" rating to a "hold" rating in a report on Tuesday, August 5th. Loop Capital dropped 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. Finally, Truist Financial boosted their target price on Costco Wholesale from $995.00 to $1,042.00 and gave the stock a "hold" rating in a report on Friday, May 30th. Seventeen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $1,056.67.

Costco Wholesale Stock Performance

The company has a debt-to-equity ratio of 0.21, a current ratio of 1.02 and a quick ratio of 0.52. The business has a 50-day simple moving average of $960.40 and a 200 day simple moving average of $975.04. The firm has a market cap of $429.24 billion, a PE ratio of 54.90, a PEG ratio of 5.43 and a beta of 0.97.

Costco Wholesale Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Friday, August 1st were given a dividend of $1.30 per share. The ex-dividend date 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

In related news, EVP Teresa A. Jones sold 600 shares of the stock in a transaction that occurred 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 transaction, the executive vice president directly owned 2,362 shares of the company's stock, valued at approximately $2,343,222.10. This represents a 20.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Yoram Rubanenko sold 4,000 shares of the stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $974.96, for a total value of $3,899,840.00. Following the transaction, the executive vice president directly owned 5,774 shares of the company's stock, valued at approximately $5,629,419.04. The trade was a 40.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 5,147 shares of company stock worth $5,031,130. 0.18% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Costco Wholesale

Several institutional investors have recently modified their holdings of the stock. Corps Capital Advisors LLC lifted its stake in shares of Costco Wholesale by 0.7% in the 1st quarter. Corps Capital Advisors LLC now owns 1,547 shares of the retailer's stock valued at $1,463,000 after purchasing an additional 10 shares during the last quarter. Covestor Ltd lifted its stake in shares of Costco Wholesale by 8.6% during the 1st quarter. Covestor Ltd now owns 126 shares of the retailer's stock worth $119,000 after acquiring an additional 10 shares during the last quarter. Rooted Wealth Advisors Inc. lifted its stake in shares of Costco Wholesale by 2.6% during the 1st quarter. Rooted Wealth Advisors Inc. now owns 441 shares of the retailer's stock worth $404,000 after acquiring an additional 11 shares during the last quarter. Bank & Trust Co lifted its stake in shares of Costco Wholesale by 20.4% during the 1st quarter. Bank & Trust Co now owns 65 shares of the retailer's stock worth $61,000 after acquiring an additional 11 shares during the last quarter. Finally, Amplius Wealth Advisors LLC increased its holdings in Costco Wholesale by 1.3% during the 1st quarter. Amplius Wealth Advisors LLC now owns 866 shares of the retailer's stock worth $819,000 after purchasing an additional 11 shares during the period. 68.48% of the stock is owned by institutional investors.

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.