Costco Wholesale (NASDAQ:COST) Shares Gap Down Following Weak Earnings

Costco Wholesale Co. (NASDAQ:COST) gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $1,026.62, but opened at $995.15. Costco Wholesale shares last traded at $971.89, with a volume of 512,693 shares traded.

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

Costco Wholesale Announces Dividend

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

Analyst Ratings Changes

COST has been the subject of several analyst reports. Oppenheimer reissued an “outperform” rating and set a $1,075.00 price target (up from $980.00) on shares of Costco Wholesale in a report on Tuesday, December 10th. Telsey Advisory Group reissued an “outperform” rating and issued a $1,100.00 price target on shares of Costco Wholesale in a report on Monday. Morgan Stanley boosted their price objective on Costco Wholesale from $950.00 to $1,150.00 and gave the stock an “overweight” rating in a report on Friday, December 13th. JPMorgan Chase & Co. raised their target price on shares of Costco Wholesale from $1,065.00 to $1,070.00 and gave the stock an “overweight” rating in a report on Friday. Finally, Wells Fargo & Company boosted their price objective on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the company an “equal weight” rating in a research report on Friday, December 13th. Ten investment 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, Costco Wholesale has an average rating of “Moderate Buy” and a consensus target price of $1,025.43.

Institutional Investors Weigh In On Costco Wholesale

Several institutional investors have recently made changes to their positions in the stock. Swedbank AB lifted its stake in shares of Costco Wholesale by 1.5% in the 3rd quarter. Swedbank AB now owns 443,747 shares of the retailer’s stock valued at $393,391,000 after acquiring an additional 6,495 shares during the last quarter. Avidian Wealth Enterprises LLC boosted 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 valued at $1,638,000 after acquiring an additional 103 shares during the last quarter. Maia Wealth LLC increased its position in Costco Wholesale by 18.1% during the 3rd quarter. Maia Wealth LLC now owns 418 shares of the retailer’s stock valued at $374,000 after purchasing an additional 64 shares during the period. Prudent Investors Network Inc. bought a new position in Costco Wholesale during the 3rd quarter worth approximately $773,000. Finally, Blake Schutter Theil Wealth Advisors LLC bought a new position in Costco Wholesale during the 3rd quarter worth approximately $1,299,000. 68.48% of the stock is currently owned by institutional investors.

Costco Wholesale Stock Performance

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 stock’s 50 day moving average price is $989.20 and its 200 day moving average price is $942.33. The company has a market capitalization of $426.60 billion, a P/E ratio of 56.36, a price-to-earnings-growth ratio of 6.15 and a beta of 0.84.

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.