Costco Wholesale (NASDAQ:COST) Stock Price Down 2% on Insider Selling

Key Points

• Costco shares fell about 2% on Thursday after insider selling, with the stock trading as low as $938.60 before last changing hands around $942.24. Trading volume was also above average.
• Director Kenneth D. Denman sold 885 shares at an average price of $957.45, totaling about $847,343. Following the sale, he still held 4,779 shares, and the transaction represented a 15.62% reduction in his position.
• Despite the dip, analysts remain broadly positive on Costco, with a consensus rating of “Moderate Buy” and an average price target of $1,061.45. Recent reports from Goldman Sachs and Oppenheimer also raised their targets and maintained bullish ratings.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report)'s share price dropped 2% during trading on Thursday following insider selling activity. The company traded as low as $938.60 and last traded at $942.24. 2,421,739 shares were traded during mid-day trading, an increase of 11% from the average session volume of 2,175,609 shares. The stock had previously closed at $961.09.

Specifically, Director Kenneth D. Denman sold 885 shares of the business's stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Analyst Ratings Changes

Several research analysts have recently issued reports on COST shares. Guggenheim reaffirmed a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. The Goldman Sachs Group increased their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a report on Friday, May 29th. Oppenheimer raised their price objective on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a research note on Tuesday, May 19th. Wells Fargo & Company upped their target price on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the company an "equal weight" rating in a research report on Thursday, April 9th. Finally, Mizuho set a $1,100.00 price target on Costco Wholesale in a research note on Monday, June 1st. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,061.45.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Analysts and commentators remain constructive on Costco’s outlook, citing durable membership economics, digital gains, and global expansion as reasons the stock could outperform. Costco vs. Target: Which Discount Retailer Holds More Promise?
• Positive Sentiment: Coverage also suggests Costco may be a defensive winner if the market weakens, with some strategists naming it among stocks that could hold up well in a correction. Costco, Exxon, and 17 More Winners if the Market Drops
• Positive Sentiment: Investors are also focused on Costco’s cash generation, with speculation that its growing cash pile could support another special dividend later in 2026. Costco's Cash Pile Is Building. Is a Special Dividend Coming in the Second Half of 2026?
• Positive Sentiment: Recent sales commentary remains strong, with reports highlighting 12% sales growth and 92% membership renewals, reinforcing Costco’s core operating strength. Costco Just Posted 12% Sales Growth and 92% Membership Renewals, and the Stock Fell Anyway. Is This the Buy-the-Dip Moment?
• Neutral Sentiment: Multiple local and lifestyle stories about new stores and membership deals in Pensacola are mainly promotional and do not materially change the investment outlook. Costco is opening 2 new locations this week. See where
• Negative Sentiment: One piece of competitive coverage says Sam’s Club is making a move Costco may not match, which could raise concern that Costco may be less willing to pursue certain growth tactics. Sam's Club just made a big move Costco won't consider

Costco Wholesale Stock Performance

The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The stock has a market cap of $417.86 billion, a price-to-earnings ratio of 47.40, a PEG ratio of 4.64 and a beta of 0.88. The stock's fifty day moving average is $997.36 and its 200-day moving average is $970.33.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The firm had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the prior year, the business earned $4.28 earnings per share. On average, analysts forecast that Costco Wholesale Corporation will post 20.38 EPS for the current 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 represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Friday, May 1st. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio (DPR) is 29.58%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Basecamp Wealth Advisors LLC increased its holdings in shares of Costco Wholesale by 0.9% in the first quarter. Basecamp Wealth Advisors LLC now owns 1,535 shares of the retailer's stock worth $1,530,000 after acquiring an additional 14 shares in the last quarter. Western Wealth Management LLC grew its position in shares of Costco Wholesale by 21.0% in the 1st quarter. Western Wealth Management LLC now owns 19,195 shares of the retailer's stock valued at $19,126,000 after purchasing an additional 3,333 shares during the period. Steelhead Wealth Management LLC bought a new stake in Costco Wholesale during the 1st quarter worth approximately $209,000. S&A Financial Services Inc. bought a new stake in Costco Wholesale during the 1st quarter worth approximately $1,936,000. Finally, E Wealth Partners LLC acquired a new stake in Costco Wholesale during the 1st quarter worth approximately $392,000. 68.48% of the stock is owned by institutional investors and hedge funds.

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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