Costco Wholesale (NASDAQ:COST) Shares Down 6.5% After Earnings Miss

Costco Wholesale Co. (NASDAQ:COST) traded down 6.5% during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $955.66 and last traded at $959.57. 1,983,672 shares were traded during trading, an increase of 8% from the average session volume of 1,834,598 shares. The stock had previously closed at $1,026.62.

The retailer reported $4.02 EPS for the quarter, missing analysts’ consensus estimates of $4.09 by ($0.07). The firm had revenue of $63.72 billion during the quarter, compared to the consensus estimate of $63.02 billion. Costco Wholesale had a net margin of 2.93% and a return on equity of 32.31%.

Costco Wholesale Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, February 21st. Stockholders of record on Friday, February 7th were given a dividend of $1.16 per share. The ex-dividend date was Friday, February 7th. This represents a $4.64 dividend on an annualized basis and a dividend yield of 0.48%. Costco Wholesale’s dividend payout ratio (DPR) is currently 27.25%.

Analysts Set New Price Targets

Several research firms recently commented on COST. Roth Mkm boosted their target price on Costco Wholesale from $755.00 to $907.00 and gave the stock a “neutral” rating in a research report on Friday, December 13th. Barclays lifted their price target on Costco Wholesale from $850.00 to $940.00 and gave the company an “equal weight” rating in a research report on Friday, December 13th. Jefferies Financial Group raised their target price on shares of Costco Wholesale from $1,050.00 to $1,145.00 and gave the company a “buy” rating in a research note on Thursday, December 5th. TD Cowen lifted their target price on shares of Costco Wholesale from $975.00 to $1,090.00 and gave the company a “buy” rating in a research report on Friday, December 13th. Finally, Oppenheimer reissued an “outperform” rating and issued a $1,075.00 price target (up previously from $980.00) on shares of Costco Wholesale in a report on Tuesday, December 10th. Ten research analysts have rated the stock with a hold rating and nineteen have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $1,025.43.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Swedbank AB grew its holdings in shares of Costco Wholesale by 1.5% during the 3rd quarter. Swedbank AB now owns 443,747 shares of the retailer’s stock worth $393,391,000 after acquiring an additional 6,495 shares during the period. Avidian Wealth Enterprises LLC raised its holdings in Costco Wholesale by 5.9% in the third quarter. Avidian Wealth Enterprises LLC now owns 1,847 shares of the retailer’s stock worth $1,638,000 after purchasing an additional 103 shares in the last quarter. Maia Wealth LLC lifted its position in Costco Wholesale by 18.1% during the third quarter. Maia Wealth LLC now owns 418 shares of the retailer’s stock valued at $374,000 after buying an additional 64 shares during the period. Prudent Investors Network Inc. bought a new stake in shares of Costco Wholesale during the 3rd quarter valued at $773,000. Finally, Blake Schutter Theil Wealth Advisors LLC bought a new position in shares of Costco Wholesale in the 3rd quarter worth about $1,299,000. Institutional investors own 68.48% of the company’s stock.

Costco Wholesale Stock Performance

The company has a market capitalization of $425.92 billion, a PE ratio of 56.35, a PEG ratio of 6.15 and a beta of 0.84. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.43 and a current ratio of 0.98. The business’s 50-day moving average is $989.20 and its 200-day moving average is $942.33.

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.