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

Costco Wholesale Corporation (NASDAQ:COST) was down 1.2% on Wednesday . The company traded as low as $920.31 and last traded at $928.48. 2,152,256 shares were traded during trading, a decline of 1% from the average session volume of 2,176,815 shares. The stock had previously closed at $939.96.

Costco Wholesale News Summary

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

• Positive Sentiment: Analyst remains bullish: Mizuho reiterated a Buy rating and an $1,100 price target, citing confidence in Costco’s membership-driven business model and continued core growth. Analyst Reiterates Buy on Costco
• Positive Sentiment: Potential earnings upside: Zacks said Costco’s history of earnings surprises and favorable current indicators could support another quarterly earnings beat, potentially helping sentiment if results meet or exceed expectations. Why Costco Could Beat Earnings Estimates Again
• Positive Sentiment: Recent coverage highlights Costco’s expansion into beauty products, new warehouse growth in Southern California, and its long-term track record as reasons investors may continue to view the company as a high-quality compounder. Costco Builds Beauty Business
• Neutral Sentiment: Articles comparing Costco with Target focus on which retailer offers better value. Costco’s strong business quality is balanced against a relatively high earnings multiple, leaving valuation-dependent investors divided. TGT or COST Which Is the Better Value Stock
• Negative Sentiment: DOJ beef-price investigation: The Justice Department expanded an inquiry into rising retail beef prices to Costco and other major retailers. The investigation could create regulatory, legal, and reputational risks, although no wrongdoing by Costco was established in the report. DOJ Expands Beef Price Investigation
• Negative Sentiment: Costco reportedly shut down its Costco Next curated marketplace/service without advance notice, frustrating some members and raising questions about customer communication and execution. What Happened to Costco Next

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Oppenheimer increased their target price on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an “outperform” rating in a report on Tuesday, May 19th. Royal Bank Of Canada initiated coverage on Costco Wholesale in a research report on Monday, July 13th. They set a “sector perform” rating and a $1,000.00 price target for the company. The Goldman Sachs Group increased their price objective on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Roth Capital boosted their target price on Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a research note on Friday, May 29th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $1,120.00 price target on shares of Costco Wholesale in a research note on Thursday, August 6th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $1,059.53.

Costco Wholesale Price Performance

The firm has a market capitalization of $411.76 billion, a PE ratio of 46.70, a PEG ratio of 4.31 and a beta of 0.87. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The firm has a 50-day simple moving average of $945.29 and a 200-day simple moving average of $979.34.

Costco Wholesale Announces Dividend

The firm also recently announced 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. The ex-dividend date was Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is currently 29.58%.

Insider Activity at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction dated Tuesday, June 23rd. The stock was 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 of the company’s stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of COST. Brighton Jones LLC grew its holdings in Costco Wholesale by 12.3% in the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer’s stock worth $18,165,000 after purchasing an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC increased its holdings in shares of Costco Wholesale by 13.1% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer’s stock valued at $1,029,000 after purchasing an additional 130 shares during the period. Sivia Capital Partners LLC raised its stake in shares of Costco Wholesale by 4.5% in the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer’s stock worth $3,814,000 after purchasing an additional 165 shares during the last quarter. Pinnacle Wealth Planning Services Inc. lifted its holdings in shares of Costco Wholesale by 1.1% during the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer’s stock worth $2,089,000 after purchasing an additional 23 shares during the period. Finally, Schnieders Capital Management LLC. boosted its position in Costco Wholesale by 2.2% in the second quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer’s stock valued at $8,416,000 after buying an additional 182 shares during the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

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.