Costco Wholesale (NASDAQ:COST) Stock Price Down 2.1% – Here’s Why

Costco Wholesale Corporation (NASDAQ:COST) shares dropped 2.1% on Wednesday . The company traded as low as $961.16 and last traded at $965.59. Approximately 1,883,612 shares changed hands during trading, a decline of 13% from the average daily volume of 2,157,566 shares. The stock had previously closed at $986.68.

Analyst Upgrades and Downgrades

COST has been the subject of a number of recent research reports. Weiss Ratings raised shares of Costco Wholesale from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, June 4th. UBS Group raised their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a “buy” rating in a research note on Wednesday, May 20th. Truist Financial raised their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a research note on Friday, May 29th. Mizuho set a $1,100.00 price objective on shares of Costco Wholesale in a research note on Monday, June 1st. Finally, Guggenheim reissued a “neutral” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $1,060.41.

Costco Wholesale Price Performance

The company’s 50 day moving average price is $1,004.06 and its 200-day moving average price is $968.46. The company has a market capitalization of $428.22 billion, a PE ratio of 48.57, a PEG ratio of 4.74 and a beta of 0.88. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The company had revenue of $70.53 billion for the quarter, compared to analysts’ expectations of $70.12 billion. During the same period in the prior year, the firm earned $4.28 earnings per share. On average, sell-side analysts forecast that Costco Wholesale Corporation will post 20.38 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were given a dividend of $1.47 per share. This is a positive change from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s dividend payout ratio is currently 29.58%.

Institutional Trading of Costco Wholesale

A number of institutional investors have recently added to or reduced their stakes in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in Costco Wholesale during the 4th quarter worth $27,000. Lifetime Wealth Management P.C. purchased a new stake in Costco Wholesale during the 4th quarter worth $28,000. Mcguire Capital Advisors Inc. purchased a new stake in Costco Wholesale during the 4th quarter worth $28,000. Hurley Capital LLC boosted its position in Costco Wholesale by 120.0% during the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock worth $31,000 after purchasing an additional 18 shares during the period. Finally, Entrust Financial LLC purchased a new stake in Costco Wholesale during the 4th quarter worth $31,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

About Costco Wholesale

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.