Costco Wholesale (NASDAQ:COST) Stock Price Down 3.1% - Here's What Happened

Key Points

• Costco Wholesale's stock price fell by 3.1% during mid-day trading, with shares closing at $925.62, down from a previous close of $954.99.
• Analysts have set a new average target price of $1,068.04 for Costco, with mixed ratings: 20 analysts rated it a buy and 11 issued a hold rating.
• The company declared a quarterly dividend of $1.30 per share, to be paid on November 14th, with a current annualized yield of 0.6%.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report)'s share price fell 3.1% during mid-day trading on Thursday . The company traded as low as $921.16 and last traded at $925.62. 2,708,754 shares changed hands during mid-day trading, an increase of 20% from the average session volume of 2,259,568 shares. The stock had previously closed at $954.99.

Analysts Set New Price Targets

Several research firms have recently weighed in on COST. Daiwa Capital Markets reduced their price target on Costco Wholesale from $1,005.00 to $947.00 and set a "neutral" rating on the stock in a report on Tuesday, September 30th. Weiss Ratings restated a "buy (b-)" rating on shares of Costco Wholesale in a report on Wednesday, October 8th. The Goldman Sachs Group boosted their price target on Costco Wholesale from $1,333.00 to $1,418.00 and gave the stock a "buy" rating in a report on Friday, September 26th. BTIG Research began coverage on Costco Wholesale in a report on Tuesday. They set a "buy" rating and a $1,115.00 price target on the stock. Finally, Erste Group Bank cut Costco Wholesale from a "buy" rating to a "hold" rating in a report on Tuesday, August 5th. Twenty analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $1,068.04.

Costco Wholesale Stock Performance

The stock has a 50 day moving average of $951.44 and a 200 day moving average of $971.75. The company has a quick ratio of 0.55, a current ratio of 1.03 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $410.22 billion, a price-to-earnings ratio of 50.83, a price-to-earnings-growth ratio of 5.74 and a beta of 0.98.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Thursday, September 25th. The retailer reported $5.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.81 by $0.06. Costco Wholesale had a return on equity of 30.09% and a net margin of 2.94%.The firm had revenue of $86.16 billion for the quarter, compared to analyst estimates of $86.01 billion. During the same period in the previous year, the firm earned $5.15 earnings per share. The company's revenue was up 8.1% compared to the same quarter last year. As a group, analysts predict that Costco Wholesale Corporation will post 18.03 EPS for the current year.

Costco Wholesale Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 14th. Shareholders of record on Friday, October 31st will be paid a $1.30 dividend. The ex-dividend date of this dividend is Friday, October 31st. This represents a $5.20 annualized dividend and a yield of 0.6%. Costco Wholesale's payout ratio is 28.56%.

Insider Activity at Costco Wholesale

In other Costco Wholesale news, EVP Russell D. Miller sold 3,381 shares of the business's stock in a transaction that occurred on Monday, September 29th. The stock was sold at an average price of $915.00, for a total value of $3,093,615.00. Following the transaction, the executive vice president directly owned 9,740 shares of the company's stock, valued at approximately $8,912,100. The trade was a 25.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Teresa A. Jones sold 600 shares of the business's stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $992.05, for a total value of $595,230.00. Following the completion of the transaction, the executive vice president directly owned 2,362 shares in the company, valued at approximately $2,343,222.10. This trade 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 insiders.

Hedge Funds Weigh In On Costco Wholesale

Institutional investors have recently modified their holdings of the company. Fishman Jay A Ltd. MI raised its position in shares of Costco Wholesale by 3.5% during the second quarter. Fishman Jay A Ltd. MI now owns 16,888 shares of the retailer's stock worth $16,718,000 after purchasing an additional 575 shares during the period. Independent Solutions Wealth Management LLC grew its holdings in Costco Wholesale by 0.3% during the second quarter. Independent Solutions Wealth Management LLC now owns 20,638 shares of the retailer's stock worth $20,430,000 after buying an additional 53 shares in the last quarter. Personal CFO Solutions LLC grew its holdings in Costco Wholesale by 12.4% during the first quarter. Personal CFO Solutions LLC now owns 1,519 shares of the retailer's stock worth $1,436,000 after buying an additional 167 shares in the last quarter. Graybill Wealth Management LTD. bought a new stake in Costco Wholesale during the first quarter worth $3,095,000. Finally, Rossmore Private Capital grew its holdings in Costco Wholesale by 0.9% during the first quarter. Rossmore Private Capital now owns 6,687 shares of the retailer's stock worth $6,325,000 after buying an additional 62 shares in the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.

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.

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