Costco Wholesale (NASDAQ:COST) Shares Down 1.3% – Time to Sell?

Costco Wholesale Corporation (NASDAQ:COST)’s stock price was down 1.3% on Monday . The company traded as low as $996.63 and last traded at $998.01. Approximately 1,615,230 shares were traded during mid-day trading, a decline of 24% from the average daily volume of 2,133,068 shares. The stock had previously closed at $1,011.15.

Analyst Ratings Changes

A number of equities analysts have commented on COST shares. UBS Group set a $1,175.00 price objective on Costco Wholesale in a research note on Friday, March 6th. Oppenheimer boosted their price objective on Costco Wholesale from $1,050.00 to $1,100.00 and gave the stock an “outperform” rating in a research note on Thursday, February 5th. Mizuho boosted their price objective on Costco Wholesale from $1,065.00 to $1,100.00 and gave the stock an “outperform” rating in a research note on Thursday, April 16th. Wells Fargo & Company boosted their price objective on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 9th. Finally, Robert W. Baird set a $1,100.00 price objective on Costco Wholesale in a research note on Thursday, February 5th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $1,045.97.

Costco Wholesale Trading Down 1.3%

The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. The company has a market cap of $442.77 billion, a price-to-earnings ratio of 51.90, a price-to-earnings-growth ratio of 4.98 and a beta of 0.99. The business has a 50 day simple moving average of $997.12 and a 200 day simple moving average of $948.27.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.55 by $0.03. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The business had revenue of $69.60 billion for the quarter, compared to analyst estimates of $68.96 billion. During the same quarter in the prior year, the firm posted $4.02 earnings per share. The firm’s revenue for the quarter was up 9.2% compared to the same quarter last year. As a group, equities analysts forecast that Costco Wholesale Corporation will post 20.31 EPS for the current year.

Costco Wholesale Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Friday, May 1st will be paid a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. This is a boost from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend is Friday, May 1st. Costco Wholesale’s payout ratio is currently 27.04%.

Insider Activity

In other news, EVP Claudine Adamo sold 730 shares of the company’s stock in a transaction on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the transaction, the executive vice president owned 6,121 shares of the company’s stock, valued at $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Costco Wholesale

Large investors have recently made changes to their positions in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of Costco Wholesale during the fourth quarter valued at $27,000. Mcguire Capital Advisors Inc. acquired a new position in shares of Costco Wholesale during the fourth quarter valued at $28,000. Hurley Capital LLC lifted its stake in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock valued at $31,000 after acquiring an additional 18 shares during the period. Lifetime Wealth Management P.C. bought a new stake in Costco Wholesale in the fourth quarter valued at about $28,000. Finally, Entrust Financial LLC bought a new stake in Costco Wholesale in the fourth quarter valued at about $31,000. Institutional investors and hedge funds own 68.48% of the company’s stock.

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.