Costco Wholesale (NASDAQ:COST) Trading Down 1.2% - Should You Sell?

Key Points

• Costco shares fell 1.2% in mid-day trading, with the stock last seen at $924.67 after trading as low as $920.55, below the prior close of $935.47.
• Despite the pullback, analysts remain broadly constructive: several firms raised price targets, and the stock carries a consensus rating of “Moderate Buy” with an average target of $1,061.45.
• Recent fundamentals were mixed but solid overall, as Q1 revenue beat expectations while EPS missed by a penny; Costco also raised its quarterly dividend to $1.47 per share from $1.30.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report)'s stock price was down 1.2% during mid-day trading on Wednesday . The company traded as low as $920.55 and last traded at $924.67. 2,896,839 shares traded hands during mid-day trading, an increase of 29% from the average daily volume of 2,238,698 shares. The stock had previously closed at $935.47.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Analysts raised forward earnings expectations for Costco, with Erste Group nudging FY2027 EPS estimates higher. That reinforces confidence that Costco can keep growing profitably. Can Costco Outgrow Retail Headwinds on Balance Sheet Strength?
• Positive Sentiment: Coverage emphasizing Costco’s executive membership growth and rising fee income suggests its high-margin membership model could unlock more earnings, especially as it expands into new markets like China. Costco's Executive Penetration Could Unlock More Earnings
• Positive Sentiment: New warehouse openings in Texas point to continued store expansion, which supports traffic, sales growth, and long-term market share gains. Costco cashes in on 2 new Texas warehouses opening this summer. Here's where

Analyst Ratings Changes

A number of brokerages have recently commented on COST. Raymond James Financial upped their price target on Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an "outperform" rating in a research report on Friday, March 6th. Roth Mkm boosted their price objective on Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a research note on Friday, May 29th. DA Davidson reaffirmed a "neutral" rating and set a $1,000.00 price objective on shares of Costco Wholesale in a report on Thursday, June 4th. Sanford C. Bernstein increased their target price on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research report on Friday, May 29th. Finally, Oppenheimer boosted their price target on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a research report on Tuesday, May 19th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Costco Wholesale has a consensus rating of "Moderate Buy" and an average price target of $1,061.45.

Costco Wholesale Price Performance

The business has a fifty day moving average of $993.97 and a 200-day moving average of $971.96. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The firm has a market cap of $410.07 billion, a PE ratio of 46.51, a PEG ratio of 4.59 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its 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 net margin of 3.01% and a return on equity of 28.04%. The company had revenue of $70.53 billion for the quarter, compared to analysts' expectations of $70.12 billion. During the same period in the previous year, the firm earned $4.28 EPS. As a group, research analysts predict that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The company 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 an increase from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale's dividend payout ratio is presently 29.58%.

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the sale, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. This represents a 15.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of Costco Wholesale in the fourth quarter worth approximately $27,000. Lifetime Wealth Management P.C. bought a new stake in Costco Wholesale during the fourth quarter valued at approximately $28,000. Mcguire Capital Advisors Inc. purchased a new position in Costco Wholesale in the 4th quarter worth approximately $28,000. Entrust Financial LLC bought a new position in shares of Costco Wholesale in the 4th quarter worth $31,000. Finally, Joseph Group Capital Management bought a new position in shares of Costco Wholesale in the 4th quarter worth $33,000. 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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