Costco Wholesale (NASDAQ:COST) Shares Down 1.8% - Should You Sell?

Key Points

• Costco raised membership fees for the first time in seven years, strengthening its high‑margin recurring revenue base and acting as a long‑term earnings tailwind.
• International sales are accelerating (March comps show Other International growing faster than the U.S.), and Costco beat quarterly estimates with $4.58 EPS versus $4.55 and revenue up 9.2% year‑over‑year.
• The stock was down 1.8% intraday to about $980 and trading below its 50‑day moving average, while Wall Street’s consensus is a "Moderate Buy" with a target near $1,043 amid some mixed analyst notes and a premium P/E (~51).

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) fell 1.8% during mid-day trading on Monday . The company traded as low as $979.36 and last traded at $980.85. 2,248,134 shares changed hands during mid-day trading, an increase of 3% from the average session volume of 2,192,156 shares. The stock had previously closed at $998.47.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco raised membership fees for the first time in seven years, reinforcing its high-margin recurring revenue engine and strong renewal rates — a long-term earnings tailwind. Costco Raised Membership Fees for the First Time in 7 Years. Here's What Investors Learned From It.
• Positive Sentiment: International sales are accelerating: March comps show Other International growing faster than the U.S., signaling that overseas markets are becoming a larger contributor to revenue growth. That diversification supports longer-term upside. Costco's International Sales Surge Signals Shift in Growth Mix
• Positive Sentiment: Consumer appeal and brand strength in key markets (notably Japan) continue to show — lifestyle/novelty products and the “American experience” draw remain differentiators that support foot traffic and membership value. Costco Japan's top-selling product baffled execs — until they watched shoppers open it and sniff. Here's what they said
• Neutral Sentiment: Costco is being highlighted as a strong growth stock by some outlets (Zacks, Motley Fool) and compared favorably on dividend growth versus Walmart — positive narrative but not a near-term catalyst for trading by itself. Here's Why Costco (COST) is a Strong Growth Stock Walmart vs. Costco: One Dividend Is Growing Twice as Fast as the Other
• Negative Sentiment: An analyst (DA Davidson) reiterated a Neutral rating on COST, which can weigh on sentiment when combined with recent gains and broader retail softness — contributing to selling pressure. Costco Wholesale's (COST) Neutral Rating Reiterated at DA Davidson

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on COST. Deutsche Bank Aktiengesellschaft boosted their price target on Costco Wholesale from $1,103.00 to $1,104.00 and gave the company a "buy" rating in a report on Thursday. Robert W. Baird set a $1,100.00 price target on Costco Wholesale in a report on Thursday, February 5th. The Goldman Sachs Group lowered their price target on Costco Wholesale from $1,171.00 to $1,088.00 and set a "buy" rating for the company in a report on Friday, March 6th. Telsey Advisory Group boosted their price target on Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an "outperform" rating in a report on Thursday. Finally, Weiss Ratings upgraded Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, March 17th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,043.13.

Costco Wholesale Stock Down 1.8%

The company has a market cap of $435.15 billion, a P/E ratio of 51.01, a P/E/G ratio of 4.92 and a beta of 0.99. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The business's 50 day moving average is $995.50 and its 200 day moving average is $942.86.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings data on Thursday, March 5th. The retailer reported $4.58 EPS for the quarter, topping analysts' consensus estimates of $4.55 by $0.03. The company had revenue of $69.60 billion during the quarter, compared to the consensus estimate of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. Costco Wholesale's revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $4.02 earnings per share. As a group, equities analysts anticipate that Costco Wholesale Corporation will post 18.03 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, January 30th were paid a $1.30 dividend. The ex-dividend date of this dividend was Friday, January 30th. This represents a $5.20 dividend on an annualized basis and a yield of 0.5%. Costco Wholesale's payout ratio is 27.04%.

Insider Buying and Selling at Costco Wholesale

In other news, EVP Teresa A. Jones sold 850 shares of the company's stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $986.26, for a total transaction of $838,321.00. Following the transaction, the executive vice president directly owned 4,228 shares of the company's stock, valued at approximately $4,169,907.28. This represents a 16.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP James C. Klauer sold 1,500 shares of the company's stock in a transaction on Wednesday, January 14th. The stock was sold at an average price of $939.00, for a total value of $1,408,500.00. Following the transaction, the executive vice president directly owned 44,837 shares in the company, valued at approximately $42,101,943. The trade was a 3.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 3,538 shares of company stock worth $3,416,416. 0.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Costco Wholesale

Hedge funds have recently made changes to their positions in the company. Old North State Trust LLC boosted its holdings in Costco Wholesale by 29.3% in the fourth quarter. Old North State Trust LLC now owns 4,007 shares of the retailer's stock valued at $3,455,000 after purchasing an additional 908 shares during the last quarter. J. Derek Lewis & Associates Inc. purchased a new stake in Costco Wholesale in the fourth quarter valued at $3,924,000. Purpose Unlimited Inc. purchased a new stake in Costco Wholesale in the fourth quarter valued at $7,638,000. Cornerstone Planning LLC purchased a new stake in Costco Wholesale in the fourth quarter valued at $3,003,000. Finally, Rockefeller Capital Management L.P. boosted its holdings in Costco Wholesale by 20.4% in the fourth quarter. Rockefeller Capital Management L.P. now owns 394,311 shares of the retailer's stock valued at $340,031,000 after purchasing an additional 66,904 shares during the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.

About Costco Wholesale

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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