Costco Wholesale (NASDAQ:COST) Stock Price Down 2.9% on Analyst Downgrade

Key Points

• Costco's stock price dropped 2.9% following a downgrade from Truist Financial, which lowered its price target from $1,042 to $1,033, maintaining a hold rating.
• Despite recent downgrades, Costco has an average rating of "Moderate Buy" from analysts, with a consensus target price of $1,069.58.
• Costco recently announced a dividend of $1.30 per share, with an annualized yield of 0.6%, reflecting a payout ratio of 29.50%.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report)'s stock price fell 2.9% on Friday after Truist Financial lowered their price target on the stock from $1,042.00 to $1,033.00. Truist Financial currently has a hold rating on the stock. Costco Wholesale traded as low as $905.05 and last traded at $915.95. 4,792,749 shares traded hands during mid-day trading, an increase of 115% from the average session volume of 2,228,019 shares. The stock had previously closed at $943.31.

A number of other equities analysts have also recently weighed in on the company. JPMorgan Chase & Co. decreased their price objective on Costco Wholesale from $1,160.00 to $1,050.00 and set an "overweight" rating on the stock in a report on Friday. Telsey Advisory Group reissued an "outperform" rating and set a $1,100.00 price objective on shares of Costco Wholesale in a report on Wednesday. Stifel Nicolaus set a $1,035.00 price objective on Costco Wholesale in a report on Thursday, May 29th. Loop Capital decreased their price objective 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, Wolfe Research assumed coverage on Costco Wholesale in a report on Thursday, September 18th. They set a "peer perform" rating on the stock. Seventeen equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat.com, Costco Wholesale currently has an average rating of "Moderate Buy" and a consensus target price of $1,069.58.

Insider Buying and Selling

In other news, EVP Yoram Rubanenko sold 4,000 shares of Costco Wholesale stock in a transaction that occurred 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 in the company, valued at approximately $5,629,419.04. This trade represents a 40.92% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Teresa A. Jones sold 600 shares of Costco Wholesale stock in a transaction that occurred on Wednesday, August 20th. The stock was sold at an average price of $992.05, for a total value of $595,230.00. Following the completion of the sale, the executive vice president owned 2,362 shares in the company, valued at approximately $2,343,222.10. This represents a 20.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.18% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Costco Wholesale

A number of large investors have recently made changes to their positions in the business. 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 period. Covestor Ltd lifted its stake in shares of Costco Wholesale by 8.6% in the 1st quarter. Covestor Ltd now owns 126 shares of the retailer's stock valued at $119,000 after purchasing an additional 10 shares during the period. Rooted Wealth Advisors Inc. lifted its stake in shares of Costco Wholesale by 2.6% in the 1st quarter. Rooted Wealth Advisors Inc. now owns 441 shares of the retailer's stock valued at $404,000 after purchasing an additional 11 shares during the period. Bank & Trust Co lifted its stake in shares of Costco Wholesale by 20.4% in the 1st quarter. Bank & Trust Co now owns 65 shares of the retailer's stock valued at $61,000 after purchasing an additional 11 shares during the period. Finally, Amplius Wealth Advisors LLC lifted its stake in shares of Costco Wholesale by 1.3% in the 1st quarter. Amplius Wealth Advisors LLC now owns 866 shares of the retailer's stock valued at $819,000 after purchasing an additional 11 shares during the period. 68.48% of the stock is currently owned by institutional investors.

Costco Wholesale Trading Down 2.9%

The company has a market cap of $406.21 billion, a PE ratio of 51.95, a PEG ratio of 5.31 and a beta of 0.97. The company has a current ratio of 1.02, a quick ratio of 0.52 and a debt-to-equity ratio of 0.21. The stock has a 50 day moving average price of $956.40 and a 200 day moving average price of $970.87.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Thursday, September 25th. The retailer reported $5.87 EPS for the quarter, beating analysts' consensus estimates of $5.81 by $0.06. The company had revenue of $86.16 billion during the quarter, compared to analysts' expectations of $86.01 billion. Costco Wholesale had a return on equity of 30.48% and a net margin of 2.92%.The firm's revenue for the quarter was up 8.1% compared to the same quarter last year. During the same quarter last year, the business posted $5.15 EPS. Sell-side analysts predict that Costco Wholesale Corporation will post 18.03 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Friday, August 1st were paid a dividend of $1.30 per share. The ex-dividend date was Friday, August 1st. This represents a $5.20 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's payout ratio is presently 29.50%.

Costco Wholesale Company Profile

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.

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