Costco Wholesale (NASDAQ:COST) Stock Price Down 2.1% - Here's What Happened

Key Points

• Costco shares fell 2.1% on Friday, trading as low as $1,025.19 and ending around $1,028.24, as investors reacted to a mix of recent headlines and broader market pressure.
• Despite the pullback, many analysts still view Costco positively: the stock carries a Moderate Buy consensus, with a price target around $1,052.60, while recent reports highlight its momentum, strong execution, and speculation about a possible stock split.
• Costco’s underlying business remains solid, with the latest quarter showing EPS of $4.58 and revenue of $69.6 billion, both above estimates. The company also recently raised its quarterly dividend to $1.47 per share from $1.30.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report)'s stock price traded down 2.1% on Friday . The company traded as low as $1,025.19 and last traded at $1,028.24. 2,044,030 shares changed hands during mid-day trading, a decline of 3% from the average session volume of 2,099,324 shares. The stock had previously closed at $1,050.45.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Costco remains a top momentum and growth name, with multiple recent pieces highlighting strong long-term performance and continued investor interest as the shares trade near record levels. Why Costco (COST) is a Top Momentum Stock for the Long-Term
• Positive Sentiment: Speculation about a possible stock split has intensified after Costco broke back above the $1,000 share-price milestone, which can boost sentiment by making the stock seem more accessible to retail investors. Costco Stock Split Rumors Explode as COST Smashes $1,000 Milestone Again
• Positive Sentiment: Analysts and market coverage continue to point to Costco’s solid operating momentum and long-term return profile, reinforcing the view that the business is executing well even after a big run-up. A Look At Costco Wholesale (COST) Valuation As Shares Trade Near Recent Highs
• Neutral Sentiment: Costco is expanding its footprint, including rezoning and land purchase activity for new locations, which supports long-term growth but is not likely to move the stock much on its own. New details emerge in proposed north Macon Costco project
• Neutral Sentiment: Costco is also seeing incremental membership-related promotion and seasonal deal coverage, which may help traffic but appears too small to materially affect the share price near term. This Costco deal cuts the price of membership to $45 - here's how to get it
• Negative Sentiment: Near-term pressure is coming from valuation concerns: several articles note that Costco’s stock is already priced for strong execution, leaving little room for disappointment after the recent rally. Costco Q3 Earnings Preview: Great Business With Limited Upside
• Negative Sentiment: Costco also traded lower in sympathy with Walmart after Walmart’s earnings and guidance disappointed investors, sparking broader concern about the consumer-retail backdrop. Costco Stock Dips After Walmart's Q1 Report: What's Going On?
• Negative Sentiment: Costco is facing headlines around tariff refunds and a tax dispute in Japan, adding some legal and regulatory noise, though these issues do not appear to be the main driver of today’s move. Costco suit highlights gaps in $166B tariff refund process

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Rothschild & Co Redburn upped their price target on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the stock a "neutral" rating in a research note on Tuesday, February 17th. Robert W. Baird set a $1,100.00 price target on shares of Costco Wholesale in a research note on Thursday, February 5th. TD Cowen reaffirmed a "buy" rating on shares of Costco Wholesale in a research note on Friday, March 6th. Mizuho boosted their target price on shares of Costco Wholesale from $1,065.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Thursday, April 16th. Finally, Evercore set a $1,100.00 target price on shares of Costco Wholesale in a report on Monday, March 2nd. 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. Based on data from MarketBeat.com, Costco Wholesale currently has an average rating of "Moderate Buy" and a consensus price target of $1,052.60.

Costco Wholesale Price Performance

The stock's fifty day moving average price is $1,007.14 and its 200-day moving average price is $959.65. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. The firm has a market cap of $456.18 billion, a price-to-earnings ratio of 53.47, a price-to-earnings-growth ratio of 5.28 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The business had revenue of $69.60 billion for the quarter, compared to analyst estimates of $68.96 billion. During the same quarter in the previous year, the business earned $4.02 earnings per share. The firm's revenue was up 9.2% compared to the same quarter last year. Equities research analysts predict that Costco Wholesale Corporation will post 20.33 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

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

Insider Activity

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the transaction, the executive vice president owned 6,121 shares in the company, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its stake in Costco Wholesale by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer's stock valued at $37,615,889,000 after buying an additional 165,349 shares during the period. Geode Capital Management LLC increased its stake in Costco Wholesale by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer's stock valued at $8,919,573,000 after buying an additional 26,690 shares during the period. Morgan Stanley increased its stake in Costco Wholesale by 1.1% in the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer's stock valued at $8,212,433,000 after buying an additional 107,775 shares during the period. Bank of America Corp DE increased its stake in Costco Wholesale by 11.5% in the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock valued at $7,488,203,000 after buying an additional 773,651 shares during the period. Finally, Diamant Asset Management Inc. increased its stake in Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after buying an additional 6,720,130 shares during the period. Institutional investors and hedge funds 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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