Catalyst Capital Reduces Stake in Costco as Analysts Adjust Ratings

According to recent filings with the Securities and Exchange Commission, Catalyst Capital Advisors LLC has decreased its stake in **Costco Wholesale Corporation** (NASDAQ:COST) by **6.5%** during the second quarter of 2023. The institutional investor now holds **4,863 shares** of Costco’s stock after selling **340 shares**. As of the latest report, these holdings are valued at approximately **$4,814,000**.

Several other institutional investors have also modified their positions in Costco recently. **Corps Capital Advisors LLC** increased its stake by **0.7%** in the first quarter, now owning **1,547 shares** valued at **$1,463,000**. Additionally, **Covestor Ltd** raised its holdings by **8.6%**, acquiring a total of **126 shares** worth **$119,000**. **MOKAN Wealth Management Inc.** and **Aspect Partners LLC** also reported slight increases in their positions, highlighting ongoing interest in the retail giant. Overall, institutional investors and hedge funds own about **68.48%** of Costco’s stock.

Costco’s Stock Performance and Dividend Declaration

On Friday, **October 13, 2023**, Costco’s stock opened at **$942.05**. The retailer has experienced a **1-year low** of **$867.34** and a **1-year high** of **$1,078.23**. With a market capitalization of **$417.50 billion**, Costco’s price-to-earnings ratio stands at **51.73**, and it currently has a **PEG ratio** of **5.73**. The company has also reported a **debt-to-equity ratio** of **0.20** and a current ratio of **1.03**.

In a recent announcement, Costco declared a quarterly dividend of **$1.30 per share**, scheduled for payment on **November 14, 2023**. Stockholders of record by **October 31, 2023**, will benefit from this dividend, which translates to an annualized amount of **$5.20** and a yield of **0.6%**. The company’s dividend payout ratio is currently **28.56%**.

Analysts’ Ratings and Future Outlook

Equity research analysts have recently updated their ratings on Costco shares, reflecting a mix of optimism and caution. **Erste Group Bank** downgraded the stock from a “buy” to a “hold” rating on **August 5, 2023**. Conversely, **Jefferies Financial Group** maintained a “buy” rating in its research report on **October 9, 2023**.

Other firms have adjusted their price targets, with **Daiwa Capital Markets** lowering its target from **$1,005.00** to **$947.00**, maintaining a “neutral” rating. **Morgan Stanley** decreased its price objective from **$1,225.00** to **$1,130.00**, while **Oppenheimer** reaffirmed an “outperform” rating with a target of **$1,130.00**. The consensus among analysts indicates **19 ratings for buy** and **11 for hold**, resulting in an overall consensus rating of “Moderate Buy” with a price target of **$1,068.15**.

In insider trading news, **Teresa A. Jones**, Executive Vice President, sold **600 shares** on **August 20, 2023**, at an average price of **$992.05**, totaling **$595,230**. This transaction reduced her ownership to **2,362 shares**, valued at approximately **$2,343,222.10**. Similarly, **Russell D. Miller**, another Executive Vice President, sold **3,381 shares** on **September 29, 2023**, for **$3,093,615**. Following this sale, Miller’s remaining shares are valued at **$8,912,100**.

As Costco continues to navigate the retail landscape, the adjustments by institutional investors and analysts reflect a dynamic environment, providing insights into the company’s future performance and investor sentiment.