Costco Wholesale (NASDAQ:COST) Stock Price Down 4.6% After Analyst Downgrade

Shares of Costco Wholesale Corporation (NASDAQ:COST) traded down 4.6% on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $1,110.00 to $1,100.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Costco Wholesale traded as low as $912.10 and last traded at $909.15. 1,305,464 shares changed hands during trading, a decline of 41% from the average daily volume of 2,227,662 shares. The stock had previously closed at $953.13.

Other research analysts also recently issued research reports about the stock. Roth Capital raised their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a research note on Friday, May 29th. Deutsche Bank Aktiengesellschaft upped their target price on Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. UBS Group upped their price target on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a research note on Wednesday, May 20th. Weiss Ratings cut Costco Wholesale from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, June 23rd. Finally, Mizuho set a $1,100.00 price objective on shares of Costco Wholesale in a report on Monday, June 1st. Twenty-two analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,061.10.

Insider Buying and Selling

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the sale, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.10% of the company’s stock.

Costco Wholesale News Summary

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

• Positive Sentiment: Wall Street analysts remain constructive, with multiple Buy ratings reaffirmed and JPMorgan keeping an Overweight view while only trimming its price target slightly to $1,100. Costco (COST) Stock: Wall Street Maintains Confidence Despite June Sales Slowdown
• Positive Sentiment: June sales were still strong overall, with net sales up 10.6% year over year to $29.24 billion and digitally enabled comparable sales rising 20.9%, showing continued demand and e-commerce momentum. Costco Wholesale Corporation Reports June Sales Results and Announces Quarterly Cash Dividend
• Positive Sentiment: Costco also announced a quarterly dividend, reinforcing its appeal as a steady, cash-generating defensive retailer. Costco Wholesale Corporation Reports June Sales Results and Announces Quarterly Cash Dividend
• Neutral Sentiment: Analysts noted that traffic trends remain solid, but tougher summer comparisons could make near-term sales growth look less impressive. Costco (COST) Stock: Wall Street Maintains Confidence Despite June Sales Slowdown
• Neutral Sentiment: Investors also appear to be taking profits after a strong run, with the market focusing on the fact that some of the sales boost came from higher gasoline prices and foreign exchange rather than pure underlying demand. Costco’s June Sales Rise but Same Store Sales Growth Disappoints
• Negative Sentiment: A proposed class-action lawsuit alleging Costco sold protein powder contaminated with heavy metals is adding headline risk, even if it is unlikely to affect near-term fundamentals. Costco faces class-action lawsuit alleging protein powder was laced with toxic heavy metals

Institutional Investors Weigh In On Costco Wholesale

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of Costco Wholesale in the fourth quarter valued at $27,000. Lifetime Wealth Management P.C. acquired a new position in shares of Costco Wholesale during the 4th quarter worth about $28,000. Mcguire Capital Advisors Inc. purchased a new position in shares of Costco Wholesale in the 4th quarter valued at about $28,000. Entrust Financial LLC acquired a new stake in shares of Costco Wholesale during the 4th quarter worth about $31,000. Finally, Joseph Group Capital Management acquired a new stake in shares of Costco Wholesale during the 4th quarter worth about $33,000. Institutional investors and hedge funds own 68.48% of the company’s stock.

Costco Wholesale Stock Performance

The firm has a 50 day moving average of $986.93 and a two-hundred day moving average of $975.26. The stock has a market cap of $402.87 billion, a PE ratio of 45.75, a PEG ratio of 4.59 and a beta of 0.88. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 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 during the quarter, compared to analysts’ expectations of $70.12 billion. During the same quarter in the prior year, the company earned $4.28 earnings per share. Research analysts predict that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Friday, July 24th will be given a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Friday, July 24th. Costco Wholesale’s dividend payout ratio (DPR) is 29.58%.

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.