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

Costco Wholesale Corporation (NASDAQ:COST)’s share price was down 1.2% on Tuesday . The company traded as low as $959.89 and last traded at $960.01. 1,280,374 shares traded hands during mid-day trading, a decline of 42% from the average daily volume of 2,189,307 shares. The stock had previously closed at $971.40.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco’s membership business is highlighted as a potentially underappreciated growth engine. Recurring membership revenue and strong customer loyalty could support earnings growth and help justify the company’s premium valuation. Costco Has a Secret Growth Engine
• Positive Sentiment: Costco and SCAN Health Plan are preparing Medicare Advantage and Medicare Supplement offerings. The partnership could create an additional membership and services growth opportunity, although the financial contribution is still uncertain. Healthcare partnership details
• Positive Sentiment: A new warehouse in Celina, Texas, expands Costco’s physical footprint, while strong customer interest in seasonal bakery products offers modest evidence of continued shopper engagement. Celina warehouse opening
• Positive Sentiment: An upgraded delivery service for popular products could improve convenience, online sales, and customer retention. Costco delivery upgrade
• Neutral Sentiment: A five-year outlook projects a $10,000 Costco investment could grow to $13,400, building on the shares’ strong historical performance. This is an opinion-based forecast rather than a near-term earnings catalyst. Five-year Costco stock outlook
• Negative Sentiment: Costco is refunding customers for certain tariff duties while defending a related class-action lawsuit. Refund costs, potential liabilities, and reputational risks could pressure results. Costco tariff refunds and lawsuit
• Negative Sentiment: JCPenney is targeting value-focused shoppers with strategies that compete with Costco and other discount retailers, potentially increasing pressure on customer traffic and consumer spending. JCPenney competition

Wall Street Analyst Weigh In

Several research firms have issued reports on COST. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $1,120.00 price objective on shares of Costco Wholesale in a research report on Thursday, August 6th. HC Wainwright reaffirmed a “buy” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Sanford C. Bernstein increased their price target on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an “outperform” rating in a report on Friday, May 29th. Royal Bank Of Canada assumed coverage on shares of Costco Wholesale in a research note on Monday, July 13th. They issued a “sector perform” rating and a $1,000.00 price objective for the company. Finally, BTIG Research restated a “buy” rating and set a $1,125.00 target price on shares of Costco Wholesale in a research report on Friday, May 29th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $1,059.53.

Costco Wholesale Stock Down 1.6%

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 50 day moving average price of $946.25 and a 200-day moving average price of $980.63. The firm has a market cap of $417.03 billion, a price-to-earnings ratio of 47.30, a P/E/G ratio of 4.57 and a beta of 0.87.

Costco Wholesale (NASDAQ:COST) last posted its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing the consensus estimate of $4.94 by ($0.01). The business had revenue of $70.53 billion for the quarter, compared to analysts’ expectations of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same quarter last year, the business posted $4.28 earnings per share. On average, equities analysts forecast that Costco Wholesale Corporation will post 20.42 EPS for the current year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were given a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale’s payout ratio is currently 29.58%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the sale, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

A number of large investors have recently made changes to their positions in COST. World Investment Advisors raised its stake in shares of Costco Wholesale by 8.4% in the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock valued at $15,835,000 after purchasing an additional 1,560 shares during the period. Sarasin & Partners LLP raised its position in Costco Wholesale by 6.9% in the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock valued at $200,372,000 after buying an additional 13,795 shares during the last quarter. Perryman Financial Advisory Inc. AD acquired a new stake in Costco Wholesale in the 4th quarter valued at approximately $9,300,000. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust bought a new stake in Costco Wholesale in the 4th quarter valued at approximately $5,813,000. Finally, Hyperion Asset Management Ltd boosted its position in Costco Wholesale by 9.0% during the 2nd quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer’s stock worth $64,325,000 after acquiring an additional 5,656 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company’s stock.

About Costco Wholesale

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.