Costco Wholesale (NASDAQ:COST) Shares Down 1.1% - Should You Sell?

Key Points

• Costco shares fell 1.1% on Monday, trading as low as $936.51 after closing at $956.32, with volume running above average.
• Fundamentals remain strong despite the stock pullback: Costco posted fiscal third-quarter comparable sales growth of 9.8% and matched expectations with $4.93 EPS on $70.53 billion in revenue.
• Wall Street remains largely bullish, with analysts including Jefferies and DA Davidson highlighting Costco’s membership growth and market dominance; the stock carries a consensus Moderate Buy rating and a $1,056.32 price target.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) shares were down 1.1% during trading on Monday . The company traded as low as $936.51 and last traded at $946.11. Approximately 2,805,520 shares traded hands during trading, an increase of 29% from the average daily volume of 2,170,190 shares. The stock had previously closed at $956.32.

Costco Wholesale News Roundup

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

• Positive Sentiment: Jefferies said Costco’s value-focused strategy, membership growth, fuel business, and digital operations continue to support sales momentum, pointing to double-digit sales growth and solid comparable sales in the fiscal third quarter. Costco's value strategy, membership growth support outlook after strong quarter, says Jefferies
• Positive Sentiment: DA Davidson reiterated a bullish view, calling Costco a “best-of-breed” retailer with strong returns on equity and market dominance, and set a $1,000 price target. Costco Wholesale Is A 'Best-of-Breed Bison,' Analyst Explains Why
• Positive Sentiment: Costco’s third-quarter comparable sales rose 9.8%, with adjusted comps up 6.6% on higher traffic and bigger baskets, suggesting healthy underlying demand even beyond fuel and foreign exchange benefits. Is Costco's 9.8% Comparable Sales Growth Stronger Than It Looks?
• Positive Sentiment: Analysts also highlighted record fuel sales and strong essentials demand, which reinforce Costco’s traffic-driving value proposition. Costco beats sales estimates on high demand for essentials

Wall Street Analyst Weigh In

Several equities analysts recently commented on COST shares. HC Wainwright reiterated a "buy" rating on shares of Costco Wholesale in a research note on Monday. Sanford C. Bernstein upped their price target on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a report on Friday. Truist Financial raised their price target on Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a research report on Friday. Robert W. Baird set a $1,100.00 price objective on Costco Wholesale in a research note on Thursday, February 5th. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $1,056.32.

Costco Wholesale Stock Performance

The business's 50 day simple moving average is $1,007.80 and its two-hundred day simple moving average is $962.81. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. The firm has a market capitalization of $419.74 billion, a PE ratio of 47.59, a price-to-earnings-growth ratio of 4.70 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $4.93. The firm had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.53 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.72%. During the same quarter in the previous year, the firm posted $4.28 EPS. Research analysts expect that Costco Wholesale Corporation will post 20.36 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were paid a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date was Friday, May 1st. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio is presently 30.58%.

Insider Activity

In other news, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the sale, the executive vice president directly owned 6,121 shares in the company, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.10% of the company's stock.

Institutional Trading of Costco Wholesale

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in Costco Wholesale in the 4th quarter worth about $27,000. Mcguire Capital Advisors Inc. purchased a new stake in Costco Wholesale in the 4th quarter worth about $28,000. Hurley Capital LLC raised its position in Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after purchasing an additional 18 shares during the period. Lifetime Wealth Management P.C. purchased a new stake in Costco Wholesale in the 4th quarter worth about $28,000. Finally, Manning & Napier Advisors LLC raised its position in Costco Wholesale by 750.0% in the 1st quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer's stock worth $34,000 after purchasing an additional 30 shares during the period. 68.48% of the stock is owned by hedge funds and other institutional investors.

Costco Wholesale Company Profile

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.

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