Costco Wholesale (NASDAQ:COST) Trading Down 2.2% – Time to Sell?

Shares of Costco Wholesale Corporation (NASDAQ:COST) dropped 2.2% on Thursday . The company traded as low as $1,039.01 and last traded at $1,050.45. Approximately 2,146,280 shares changed hands during mid-day trading, an increase of 2% from the average daily volume of 2,099,930 shares. The stock had previously closed at $1,074.01.

Costco Wholesale News Summary

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

• Positive Sentiment: Several outlets highlighted Costco’s strong underlying business, with analysts and commentators pointing to solid membership renewals, resilient traffic, and the company’s ability to outperform peers in a challenging retail environment. Costco Expected to Deliver Strong Q3 Results Despite Macro Pressures, UBS Says
• Positive Sentiment: UBS raised its price target on Costco and kept a buy rating, reinforcing Wall Street’s bullish long-term view. UBS Adjusts Price Target on Costco Wholesale to 1,275 From 1,205, Maintains Buy Rating
• Positive Sentiment: Higher gas prices may be sending more shoppers to warehouse clubs like Costco for discounted fuel and value shopping, which could support traffic trends. Higher Gas Prices Have Consumers Visiting Costco, Sam’s Club More: What The Data Shows
• Neutral Sentiment: Costco continues to attract attention ahead of its May 28 earnings report, with some previews saying the company may not need a blowout quarter to stay on track, but the bar for results remains high. Costco (COST) Doesn’t Need a Blowout Q3. Steady Renewals May Be Enough
• Negative Sentiment: Costco is being dragged lower in sympathy with Walmart after Walmart’s earnings and guidance disappointed investors, raising concerns about consumer spending trends across big-box retailers. Walmart Is Getting Slammed Today. Should You Sell WMT Stock Along With Target and Costco?
• Negative Sentiment: Some articles suggest Costco’s valuation is already rich and leaves limited room for disappointment, which may be prompting traders to take profits before earnings. Costco Q3 Earnings Preview: Great Business With Limited Upside
• Negative Sentiment: Costco also faces a legal overhang from a reported tax-related dispute in Japan, though this looks less material than the broader retail sympathy move. Costco hit with 1.5 billion yen tab for undeclared consumption tax

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. UBS Group upped their target price on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a “buy” rating in a research report on Wednesday. Telsey Advisory Group lifted their target price on 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. Bank of America began coverage on Costco Wholesale in a research note on Friday, February 27th. They set a “buy” rating and a $1,185.00 target price on the stock. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $1,192.00 target price on shares of Costco Wholesale in a research note on Tuesday, May 12th. Finally, Raymond James Financial raised their price target on Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an “outperform” rating in a report on Friday, March 6th. Twenty-two analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Costco Wholesale has an average rating of “Moderate Buy” and an average price target of $1,052.60.

Costco Wholesale Trading Down 2.2%

The business’s 50 day moving average price is $1,006.08 and its two-hundred day moving average price is $958.67. The company has a market capitalization of $466.03 billion, a price-to-earnings ratio of 54.63, a price-to-earnings-growth ratio of 5.38 and a beta of 0.92. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06.

Costco Wholesale (NASDAQ:COST) last announced its earnings results on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, topping the consensus estimate of $4.55 by $0.03. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The firm had revenue of $69.60 billion for the quarter, compared to analysts’ expectations of $68.96 billion. During the same quarter in the previous year, the company earned $4.02 earnings per share. The firm’s quarterly revenue was up 9.2% compared to the same quarter last year. Equities analysts forecast that Costco Wholesale Corporation will post 20.33 earnings per share 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 given a dividend of $1.47 per share. This is a boost from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date was Friday, May 1st. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s payout ratio is 30.58%.

Insider Activity

In related news, EVP Claudine Adamo sold 730 shares of the firm’s stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the transaction, the executive vice president owned 6,121 shares of the company’s stock, valued at $6,139,485.42. This trade represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of Costco Wholesale in the 4th quarter worth approximately $27,000. Lifetime Wealth Management P.C. acquired a new position in Costco Wholesale in the fourth quarter worth approximately $28,000. Mcguire Capital Advisors Inc. acquired a new position in Costco Wholesale in the fourth quarter worth approximately $28,000. Hurley Capital LLC grew its position in Costco Wholesale by 120.0% in the third quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock worth $31,000 after buying an additional 18 shares during the last quarter. Finally, Entrust Financial LLC bought a new stake in shares of Costco Wholesale during the 4th quarter worth $31,000. 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.