Costco Wholesale (NASDAQ:COST) Stock Price Down 2.9% – Should You Sell?

Shares of Costco Wholesale Corporation (NASDAQ:COST) dropped 2.9% during trading on Thursday . The stock traded as low as $888.08 and last traded at $895.86. Approximately 3,745,651 shares were traded during trading, an increase of 64% from the average daily volume of 2,279,616 shares. The stock had previously closed at $922.26.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Daiwa Capital Markets lowered their price objective on shares of Costco Wholesale from $1,005.00 to $947.00 and set a “neutral” rating for the company in a report on Tuesday, September 30th. Roth Capital set a $907.00 price target on shares of Costco Wholesale and gave the stock a “neutral” rating in a research note on Friday, September 26th. Morgan Stanley reduced their price objective on Costco Wholesale from $1,225.00 to $1,130.00 and set an “overweight” rating on the stock in a research note on Friday, September 26th. Sanford C. Bernstein lowered their target price on Costco Wholesale from $1,140.00 to $1,134.00 and set an “outperform” rating for the company in a research note on Tuesday, November 4th. Finally, DA Davidson restated a “neutral” rating and set a $1,000.00 price target on shares of Costco Wholesale in a research report on Thursday. Nineteen equities research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $1,027.75.

Costco Wholesale Price Performance

The company has a market cap of $397.02 billion, a PE ratio of 49.20, a PEG ratio of 6.19 and a beta of 1.00. The firm’s 50-day moving average is $921.05 and its 200-day moving average is $957.21. The company has a quick ratio of 0.55, a current ratio of 1.03 and a debt-to-equity ratio of 0.20.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings data on Thursday, September 25th. The retailer reported $5.87 earnings per share 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 business had revenue of $86.16 billion for the quarter, compared to analysts’ expectations of $86.01 billion. During the same period in the previous year, the firm posted $5.15 EPS. The business’s revenue was up 8.1% on a year-over-year basis. On average, equities analysts anticipate that Costco Wholesale Corporation will post 18.03 EPS for the current year.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, November 14th. Shareholders of record on Friday, October 31st were issued a $1.30 dividend. The ex-dividend date was Friday, October 31st. This represents a $5.20 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s dividend payout ratio is 28.56%.

Insider Transactions at Costco Wholesale

In related news, EVP William Richard Wilcox sold 2,400 shares of the business’s stock in a transaction dated Friday, November 7th. The shares were sold at an average price of $930.13, for a total transaction of $2,232,312.00. Following the sale, the executive vice president owned 2,000 shares of the company’s stock, valued at $1,860,260. The trade was a 54.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Claudine Adamo sold 2,700 shares of the company’s stock in a transaction dated Friday, October 24th. The stock was sold at an average price of $935.68, for a total transaction of $2,526,336.00. Following the completion of the sale, the executive vice president owned 6,851 shares in the company, valued at approximately $6,410,343.68. This trade represents a 28.27% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 9,720 shares of company stock worth $9,010,257. Corporate insiders own 0.18% of the company’s stock.

Hedge Funds Weigh In On Costco Wholesale

Institutional investors and hedge funds have recently modified their holdings of the stock. Brighton Jones LLC lifted its holdings in shares of Costco Wholesale by 12.3% during the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer’s stock valued at $18,165,000 after purchasing an additional 2,172 shares in the last quarter. Revolve Wealth Partners LLC raised its position in Costco Wholesale by 13.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer’s stock worth $1,029,000 after buying an additional 130 shares during the last quarter. Advyzon Investment Management LLC bought a new position in Costco Wholesale during the 1st quarter valued at about $241,000. Intrust Bank NA boosted its holdings in shares of Costco Wholesale by 2.2% during the 1st quarter. Intrust Bank NA now owns 5,140 shares of the retailer’s stock valued at $4,861,000 after acquiring an additional 112 shares during the last quarter. Finally, Natural Investments LLC boosted its holdings in shares of Costco Wholesale by 1.6% during the 1st quarter. Natural Investments LLC now owns 3,127 shares of the retailer’s stock valued at $2,957,000 after acquiring an additional 50 shares during the last quarter. 68.48% of the stock is currently 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.