Costco Shares In Line With Special Dividend-Adjusted Price

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Costco Wholesale Corporation COST shares are trading lower by $0.50 at $131.18 in Tuesday's session. The company is due to announce Q3 results after the close on Wednesday.

The Street is looking for EPS of $1.17 on revenues of $26.72 billion. Ahead of the report, the issue has been range bound between $142.74 and $145.50 over the last seven trading sessions (today included). The issue has backed off from its all-time high made in March at $154.23.

Related Link: Costco, More Retailers On Deck For Earnings This Week

That high was put in place after the company issued a special $5 dividend that was paid out on February 27, an announcement that instigated much more than a $5 rally, as the shares sprinted from their January 30 close ($137.99) to $147.54 -- the record date to receive the special dividend.

The issue is now trading well below its all-time high, and is very close to the $143 level. That coincides perfectly with the $5 dividend added to pre-announcement price of $137.99.