Costco Wholesale (NASDAQ:COST) Trading Down 1.5% – Time to Sell?

Costco Wholesale Corporation (NASDAQ:COST) shares were down 1.5% during mid-day trading on Thursday . The stock traded as low as $948.31 and last traded at $951.45. Approximately 3,694,624 shares changed hands during trading, an increase of 70% from the average session volume of 2,169,208 shares. The stock had previously closed at $965.59.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco’s latest operating update showed strong momentum, with comparable sales up 9.8%, membership fees rising 10.7%, and digitally enabled sales jumping 21.5%, reinforcing the company’s durable growth story. Prediction: Costco Will Trade At This Price in 2027
• Positive Sentiment: Analysts and commentators continue to highlight Costco’s competitive advantages, loyal membership base, and ongoing technology investments to improve the shopping experience and ease customer pain points like parking. Costco tackles major frustration for members
• Positive Sentiment: Several recent articles frame the stock weakness as a possible buying opportunity, pointing to Costco’s resilient business model and long-term compounding potential. Why Weakness in Dividend-Paying Costco Stock Is a Strong Buying Opportunity
• Neutral Sentiment: Fresh media coverage around Costco products, store hours, and local development approvals is supportive of brand visibility, but these items are unlikely to materially move the stock on their own. Is Costco open on Juneteenth?
• Negative Sentiment: Investor sentiment remains cautious because Costco’s premium valuation is being questioned amid macro uncertainty and sticky inflation, with one recent note saying growth may not fully justify the stock’s price. Should You Buy Costco Stock for the Long Haul? Here’s the Honest Answer.
• Negative Sentiment: Analyst disagreement is also weighing on the shares, with one report noting Costco fell after Citi and Bernstein issued conflicting views on the big-box retailer. Costco Stock (COST) Drops as Analysts Can’t Agree on the Big-Box Retailer

Wall Street Analyst Weigh In

Several research analysts have weighed in on COST shares. TD Cowen restated a “buy” rating and issued a $1,175.00 price target on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Jefferies Financial Group reissued a “buy” rating and issued a $1,050.00 target price on shares of Costco Wholesale in a report on Thursday, March 5th. Roth Mkm upped their target price on shares of Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a research report on Friday, May 29th. Telsey Advisory Group raised their target price on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an “outperform” rating in a research note on Thursday, April 9th. Finally, Daiwa Securities Group lifted their price target on shares of Costco Wholesale from $917.00 to $975.00 and gave the company a “neutral” rating in a report on Tuesday, March 10th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Costco Wholesale currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,061.45.

Costco Wholesale Price Performance

The firm has a market cap of $421.95 billion, a PE ratio of 47.86, a PEG ratio of 4.61 and a beta of 0.88. The firm has a fifty day simple moving average of $1,000.19 and a two-hundred day simple moving average of $969.01. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). The firm had revenue of $70.53 billion for the quarter, compared to analysts’ expectations of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same period last year, the company earned $4.28 earnings per share. Equities analysts predict that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The firm also recently declared 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. The ex-dividend date of this dividend was Friday, May 1st. This is a positive change from Costco Wholesale’s previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s payout ratio is currently 29.58%.

Hedge Funds Weigh In On Costco Wholesale

Several institutional investors have recently bought and sold shares of COST. Lbmc Investment Advisors LLC boosted its stake in shares of Costco Wholesale by 0.5% during the 4th quarter. Lbmc Investment Advisors LLC now owns 2,041 shares of the retailer’s stock worth $1,760,000 after acquiring an additional 10 shares in the last quarter. Graybill Wealth Management LTD. grew its holdings in shares of Costco Wholesale by 0.3% in the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer’s stock worth $2,754,000 after acquiring an additional 10 shares during the period. Palisade Asset Management LLC increased its stake in Costco Wholesale by 1.4% in the 4th quarter. Palisade Asset Management LLC now owns 702 shares of the retailer’s stock valued at $605,000 after purchasing an additional 10 shares in the last quarter. Wealth Effects LLC increased its stake in Costco Wholesale by 1.2% in the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer’s stock valued at $871,000 after purchasing an additional 10 shares in the last quarter. Finally, Folger Nolan Fleming Douglas Capital Management Inc. raised its holdings in Costco Wholesale by 1.8% during the first quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer’s stock worth $549,000 after purchasing an additional 10 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.