Costco Wholesale (NASDAQ:COST) Shares Down 1.9% - What's Next?

Key Points

• Costco shares fell 1.9% on Wednesday, even as trading volume was slightly above average and the stock remained near recent highs.
• Analysts stayed upbeat, with UBS lifting its price target to $1,275 and keeping a buy rating; overall Wall Street consensus remains a Moderate Buy.
• Recent fundamentals were solid: Costco beat its last quarterly earnings and revenue estimates, and it also raised its quarterly dividend to $1.47 per share from $1.30.

Shares of Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) dropped 1.9% on Wednesday . The company traded as low as $1,072.00 and last traded at $1,074.01. Approximately 2,131,363 shares were traded during mid-day trading, an increase of 2% from the average daily volume of 2,098,193 shares. The stock had previously closed at $1,094.32.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: UBS raised its price target on Costco to $1,275 from $1,205 and kept a buy rating, implying additional upside from current levels. Benzinga
• Positive Sentiment: Analysts remain constructive ahead of Q3 earnings, arguing Costco only needs to show steady membership renewals and continued traffic growth to justify its valuation. TipRanks
• Positive Sentiment: Recent coverage highlighted Costco’s strong operating momentum, including a recent dividend increase, record highs, and expectations that the business continues to expand in 2026. TipRanks
• Neutral Sentiment: Investor attention remains elevated, with multiple articles calling Costco a trending or widely watched stock as the earnings date approaches.
• Negative Sentiment: Some commentary notes that expectations are already high, which could limit near-term upside if the upcoming report is merely solid rather than exceptional. Seeking Alpha

Wall Street Analysts Forecast Growth

COST has been the subject of a number of recent research reports. Truist Financial raised their target price on Costco Wholesale from $926.00 to $977.00 and gave the stock a "hold" rating in a research report on Friday, March 6th. Gordon Haskett raised their target price on Costco Wholesale from $1,000.00 to $1,100.00 in a research report on Tuesday, February 3rd. Raymond James Financial raised their target price on Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a research report on Friday, March 6th. Roth Mkm reissued a "sell" rating on shares of Costco Wholesale in a research report on Wednesday, February 4th. Finally, BTIG Research reissued a "buy" rating and issued a $1,115.00 target price on shares of Costco Wholesale in a research report on Thursday, March 5th. Twenty-two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $1,052.60.

Costco Wholesale Stock Performance

The company has a market capitalization of $476.48 billion, a PE ratio of 55.85, a PEG ratio of 5.30 and a beta of 0.92. 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 company has a 50-day moving average price of $1,004.71 and a two-hundred day moving average price of $957.59.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share for the quarter, beating the consensus estimate of $4.55 by $0.03. The company had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The firm's quarterly revenue was up 9.2% compared to the same quarter last year. During the same period in the previous year, the business earned $4.02 earnings per share. Analysts predict that Costco Wholesale Corporation will post 20.31 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were paid a dividend of $1.47 per share. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale's dividend payout ratio is 30.58%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the sale, the executive vice president owned 6,121 shares of the company's stock, valued at $6,139,485.42. The trade was a 10.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On Costco Wholesale

A number of hedge funds and other institutional investors have recently modified their holdings of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of Costco Wholesale during the 4th quarter worth approximately $27,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Costco Wholesale in the 4th quarter worth approximately $28,000. Hurley Capital LLC grew its stake in shares of 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 buying an additional 18 shares during the last quarter. Lifetime Wealth Management P.C. purchased a new stake in shares of Costco Wholesale in the 4th quarter worth approximately $28,000. Finally, Manning & Napier Advisors LLC grew its stake in shares of 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 buying an additional 30 shares during the last quarter. Institutional investors own 68.48% of the company's stock.

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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