Costco Wholesale (NASDAQ:COST) Shares Down 1.1% – Should You Sell?

Shares of Costco Wholesale Corporation (NASDAQ:COST) dropped 1.1% during trading on Monday . The company traded as low as $936.51 and last traded at $946.11. Approximately 2,805,520 shares were traded during mid-day trading, an increase of 29% from the average daily volume of 2,170,190 shares. The stock had previously closed at $956.32.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Jefferies said Costco’s value-focused strategy, membership growth, fuel business, and digital operations continue to support sales momentum, pointing to double-digit sales growth and solid comparable sales in the fiscal third quarter. Costco’s value strategy, membership growth support outlook after strong quarter, says Jefferies
• Positive Sentiment: DA Davidson reiterated a bullish view, calling Costco a “best-of-breed” retailer with strong returns on equity and market dominance, and set a $1,000 price target. Costco Wholesale Is A ‘Best-of-Breed Bison,’ Analyst Explains Why
• Positive Sentiment: Costco’s third-quarter comparable sales rose 9.8%, with adjusted comps up 6.6% on higher traffic and bigger baskets, suggesting healthy underlying demand even beyond fuel and foreign exchange benefits. Is Costco’s 9.8% Comparable Sales Growth Stronger Than It Looks?
• Positive Sentiment: Analysts also highlighted record fuel sales and strong essentials demand, which reinforce Costco’s traffic-driving value proposition. Costco beats sales estimates on high demand for essentials

Analyst Upgrades and Downgrades

COST has been the topic of a number of research analyst reports. 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 note on Friday. BTIG Research restated a “buy” rating and issued a $1,125.00 target price on shares of Costco Wholesale in a research note on Friday. Telsey Advisory Group upped their target price on shares of 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. Robert W. Baird set a $1,100.00 target price on shares of Costco Wholesale in a research note on Thursday, February 5th. Finally, Weiss Ratings upgraded shares of Costco Wholesale from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, March 17th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $1,056.32.

Costco Wholesale Trading Down 1.1%

The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The stock’s 50 day moving average price is $1,007.80 and its 200-day moving average price is $962.81. The stock has a market capitalization of $419.74 billion, a P/E ratio of 47.59, a P/E/G ratio of 4.70 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST) last announced its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, meeting the consensus estimate of $4.93. The company had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.53 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.72%. During the same period last year, the firm earned $4.28 earnings per share. As a group, equities research analysts expect that Costco Wholesale Corporation will post 20.36 earnings per share for the current year.

Costco Wholesale Increases Dividend

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

Insiders Place Their Bets

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the firm’s stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the completion of the sale, the executive vice president directly owned 6,121 shares in the company, 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Costco Wholesale

Institutional investors have recently bought and sold shares of the company. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in Costco Wholesale in the fourth quarter valued at approximately $27,000. Lifetime Wealth Management P.C. purchased a new position in shares of Costco Wholesale in the fourth quarter worth $28,000. Mcguire Capital Advisors Inc. purchased a new position in shares of Costco Wholesale in the fourth quarter worth $28,000. Hurley Capital LLC raised its holdings in shares of 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 purchased a new position in shares of Costco Wholesale in the fourth quarter worth $31,000. 68.48% of the stock is currently owned by institutional investors and hedge funds.

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.