Costco Wholesale (NASDAQ:COST) Stock Price Down 1.1% – Here’s What Happened

Costco Wholesale Corporation (NASDAQ:COST) dropped 1.1% during mid-day trading on Friday. The stock traded as low as $1,043.00 and last traded at $1,053.56. 2,483,467 shares changed hands during mid-day trading, an increase of 12% from the average daily volume of 2,209,918 shares. The stock had previously closed at $1,065.59.

Costco Wholesale News Summary

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Costco reported October net sales of $24.50 billion, up 12.6% year over year. U.S. comparable sales rose 8.1% excluding gasoline-price changes, while digital growth also accelerated—evidence of continued customer demand. Costco’s October Net Sales Jump 12.6% as Digital Growth Accelerates
• Positive Sentiment: JPMorgan raised its price target to $1,150 from $1,015 and maintained an overweight rating. Bank of America also kept its buy rating following the stronger U.S. comparable-sales results. JPMorgan price-target update Costco retains BofA buy as October U.S. comps rise
• Neutral Sentiment: Recent coverage points to solid share-price momentum, supported by a string of earnings beats, but investors may be watching whether earnings growth can justify the stock’s valuation. Costco Stock: Earnings Growth Could Shape the Next Big Move
• Negative Sentiment: Valuation remains a key risk: reports cite a trailing P/E near 49, leaving limited room for disappointment, while earnings revisions have raised concerns. Citi maintained a hold rating with a $1,020 target, reflecting a more cautious view than JPMorgan’s. Costco Stock: Why Analysts Are Split Despite Strong October Sales

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Mizuho cut their price target on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating on the stock in a report on Friday, September 25th. Raymond James Financial decreased their price objective on Costco Wholesale from $1,100.00 to $1,050.00 and set an “outperform” rating for the company in a report on Friday, September 25th. Sanford C. Bernstein decreased their price objective on Costco Wholesale from $1,144.00 to $1,143.00 and set an “outperform” rating for the company in a report on Friday, September 25th. Weiss Ratings raised Costco Wholesale from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, October 23rd. Finally, Robert W. Baird set a $1,175.00 target price on Costco Wholesale in a report on Friday, September 25th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Costco Wholesale presently has a consensus rating of “Moderate Buy” and an average target price of $1,090.55.

Costco Wholesale Stock Down 1.1%

The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. The stock’s 50-day moving average price is $952.42 and its 200-day moving average price is $972.49. The company has a market cap of $466.86 billion, a P/E ratio of 50.75, a PEG ratio of 4.50 and a beta of 0.85.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. The company had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. Costco Wholesale’s revenue for the quarter was up 11.1% on a year-over-year basis. During the same period in the prior year, the firm earned $5.87 earnings per share. As a group, research analysts forecast that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be given a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Friday, October 30th. Costco Wholesale’s dividend payout ratio is presently 28.32%.

Insider Activity

In other Costco Wholesale news, EVP William Richard Wilcox sold 1,100 shares of the business’s stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total value of $1,054,031.00. Following the transaction, the executive vice president owned 3,094 shares of the company’s stock, valued at approximately $2,964,701.74. The trade was a 26.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Claudine Adamo sold 2,200 shares of the business’s stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the transaction, the executive vice president directly owned 7,134 shares in the company, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

A number of hedge funds have recently made changes to their positions in COST. Sarasin & Partners LLP grew its holdings in Costco Wholesale by 6.9% in the second quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock worth $200,372,000 after purchasing an additional 13,795 shares during the period. Silvant Capital Management LLC purchased a new position in shares of Costco Wholesale during the second quarter valued at approximately $16,013,000. Nissay Asset Management Corp Japan lifted its holdings in shares of Costco Wholesale by 4.1% during the second quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer’s stock valued at $148,193,000 after purchasing an additional 6,200 shares during the last quarter. Hyperion Asset Management Ltd boosted its position in shares of Costco Wholesale by 9.0% in the 2nd quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer’s stock worth $64,325,000 after purchasing an additional 5,656 shares in the last quarter. Finally, Signal Advisors Wealth LLC boosted its position in shares of Costco Wholesale by 97.0% in the 3rd quarter. Signal Advisors Wealth LLC now owns 3,531 shares of the retailer’s stock worth $3,214,000 after purchasing an additional 1,739 shares in the last quarter. 68.48% of the stock is currently owned by institutional investors.

About Costco Wholesale

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally low prices. Its products include groceries, fresh foods, appliances, electronics, apparel, furniture, and household goods, as well as its Kirkland Signature private-label line.

The company also provides services such as gasoline stations, pharmacies, optical and hearing-aid centers, food courts, and travel offerings. Costco serves members through warehouses and online channels.

Founded in 1983 in Seattle, Costco has expanded across North America, Europe, Asia, and Australia.