Costco Wholesale (NASDAQ:COST) Trading Down 1.9% – Here’s What Happened

Costco Wholesale Corporation (NASDAQ:COST) shares traded down 1.9% on Wednesday . The stock traded as low as $1,072.00 and last traded at $1,074.01. 2,131,363 shares were traded during mid-day trading, an increase of 2% from the average session volume of 2,098,193 shares. The stock had previously closed at $1,094.32.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco remains a top momentum and growth name, with multiple recent pieces highlighting strong long-term performance and continued investor interest as the shares trade near record levels. Why Costco (COST) is a Top Momentum Stock for the Long-Term
• Positive Sentiment: Speculation about a possible stock split has intensified after Costco broke back above the $1,000 share-price milestone, which can boost sentiment by making the stock seem more accessible to retail investors. Costco Stock Split Rumors Explode as COST Smashes $1,000 Milestone Again
• Positive Sentiment: Analysts and market coverage continue to point to Costco’s solid operating momentum and long-term return profile, reinforcing the view that the business is executing well even after a big run-up. A Look At Costco Wholesale (COST) Valuation As Shares Trade Near Recent Highs
• Neutral Sentiment: Costco is expanding its footprint, including rezoning and land purchase activity for new locations, which supports long-term growth but is not likely to move the stock much on its own. New details emerge in proposed north Macon Costco project
• Neutral Sentiment: Costco is also seeing incremental membership-related promotion and seasonal deal coverage, which may help traffic but appears too small to materially affect the share price near term. This Costco deal cuts the price of membership to $45 – here’s how to get it
• Negative Sentiment: Near-term pressure is coming from valuation concerns: several articles note that Costco’s stock is already priced for strong execution, leaving little room for disappointment after the recent rally. Costco Q3 Earnings Preview: Great Business With Limited Upside
• Negative Sentiment: Costco also traded lower in sympathy with Walmart after Walmart’s earnings and guidance disappointed investors, sparking broader concern about the consumer-retail backdrop. Costco Stock Dips After Walmart’s Q1 Report: What’s Going On?
• Negative Sentiment: Costco is facing headlines around tariff refunds and a tax dispute in Japan, adding some legal and regulatory noise, though these issues do not appear to be the main driver of today’s move. Costco suit highlights gaps in $166B tariff refund process

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on COST shares. Rothschild & Co Redburn increased their target price on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the company a “neutral” rating in a research report on Tuesday, February 17th. Wells Fargo & Company boosted their target price on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 9th. Telsey Advisory Group boosted their target price on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an “outperform” rating in a research note on Thursday, April 9th. BTIG Research restated a “buy” rating and set a $1,115.00 target price on shares of Costco Wholesale in a research note on Thursday, March 5th. Finally, Deutsche Bank Aktiengesellschaft boosted their target price on Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Twenty-two equities research 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’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $1,052.60.

Costco Wholesale Trading Down 2.1%

The stock’s fifty day simple moving average is $1,007.14 and its 200-day simple moving average is $959.65. The firm has a market cap of $456.18 billion, a PE ratio of 53.47, a PEG ratio of 5.28 and a beta of 0.92. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.55 by $0.03. The business had revenue of $69.60 billion during the quarter, compared to analysts’ expectations of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The business’s quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter last year, the company posted $4.02 earnings per share. On average, sell-side analysts forecast that Costco Wholesale Corporation will post 20.33 earnings per share for the current year.

Costco Wholesale Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were issued a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. This is a boost from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale’s dividend payout ratio is 30.58%.

Insider Activity

In related news, EVP Claudine Adamo sold 730 shares of the firm’s stock in a transaction on Monday, March 9th. The shares were 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 document filed with the SEC, which is available at this hyperlink. 0.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Brighton Jones LLC increased 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 valued at $18,165,000 after buying an additional 2,172 shares in the last quarter. Revolve Wealth Partners LLC boosted its stake in shares of Costco Wholesale by 13.1% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer’s stock worth $1,029,000 after acquiring an additional 130 shares in the last quarter. Sivia Capital Partners LLC boosted its stake in shares of Costco Wholesale by 4.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer’s stock worth $3,814,000 after acquiring an additional 165 shares in the last quarter. Pinnacle Wealth Planning Services Inc. boosted its stake in shares of Costco Wholesale by 1.1% during the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer’s stock worth $2,089,000 after acquiring an additional 23 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its stake in shares of Costco Wholesale by 2.2% during the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer’s stock worth $8,416,000 after acquiring an additional 182 shares in the last quarter. Hedge funds and other 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.