Costco Wholesale (NASDAQ:COST) Shares Down 2.2% – Should You Sell?

Costco Wholesale Corporation (NASDAQ:COST) dropped 2.2% during mid-day trading on Thursday . The stock traded as low as $933.25 and last traded at $934.66. Approximately 1,871,758 shares changed hands during trading, a decline of 14% from the average daily volume of 2,182,248 shares. The stock had previously closed at $956.12.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco continues expanding its physical footprint, with a new warehouse welcoming shoppers in Celina, Texas. The opening supports long-term membership and sales growth. Costco Wholesale welcomes shoppers to Celina warehouse
• Positive Sentiment: An analyst commentary argues that Costco’s membership operation may be an underappreciated growth engine, with recurring membership revenue supporting profitability and customer retention. Costco Has a Secret Growth Engine
• Positive Sentiment: Costco is reportedly upgrading delivery options for popular products, which could improve convenience, e-commerce engagement and sales. Costco brings long-awaited delivery upgrade
• Positive Sentiment: The company’s partnership with SCAN Health Plan to offer Medicare products could create a new membership and services opportunity, although the financial impact is still uncertain. Healthcare CEO partnering with Costco
• Neutral Sentiment: Major projects involving Costco and other companies in Newington, New Hampshire, are advancing, but the report does not indicate a material change to Costco’s near-term financial outlook. Major projects in Newington advance
• Neutral Sentiment: Positive commentary suggests a $10,000 investment in Costco could grow to $13,400 over five years, but this is an opinion-based forecast rather than a new fundamental catalyst. Costco five-year investment outlook
• Negative Sentiment: Costco is refunding certain tariff duties while contesting a related class-action lawsuit. Potential legal costs, refunds and reputational concerns could weigh on margins and investor sentiment. Costco tariff refunds and class action
• Negative Sentiment: Competitive pressure remains a concern as JCPenney targets value-oriented shoppers alongside retailers such as Costco and Marshalls. The risk is likely modest, but it reinforces the crowded retail environment. JCPenney takes on Costco and other retailers

Analysts Set New Price Targets

A number of brokerages have weighed in on COST. JPMorgan Chase & Co. lowered their price objective on Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating on the stock in a report on Thursday, July 9th. Citigroup initiated coverage on Costco Wholesale in a research note on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price target on the stock. Truist Financial increased their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a research report on Friday, May 29th. Royal Bank Of Canada initiated coverage on Costco Wholesale in a report on Monday, July 13th. They issued a “sector perform” rating and a $1,000.00 target price for the company. Finally, Mizuho set a $1,100.00 target price on shares of Costco Wholesale in a research report on Monday, June 1st. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $1,059.53.

Costco Wholesale Stock Down 2.2%

The firm has a 50 day moving average of $946.25 and a two-hundred day moving average of $980.63. 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 stock has a market capitalization of $414.50 billion, a PE ratio of 47.02, 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). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same period last year, the company posted $4.28 EPS. Equities research analysts anticipate that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Announces Dividend

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

Insider Buying and Selling

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. California State Teachers Retirement System raised its holdings in shares of Costco Wholesale by 91,744.7% in the second quarter. California State Teachers Retirement System now owns 631,103,610 shares of the retailer’s stock worth $590,378,494,000 after acquiring an additional 630,416,468 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Costco Wholesale by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer’s stock valued at $8,919,573,000 after acquiring an additional 26,690 shares during the last quarter. Morgan Stanley boosted its stake in shares of Costco Wholesale by 1.1% during the fourth quarter. Morgan Stanley now owns 9,523,423 shares of the retailer’s stock valued at $8,212,433,000 after acquiring an additional 107,775 shares during the last quarter. Bank of America Corp DE increased its position in Costco Wholesale by 11.5% during the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock worth $7,488,203,000 after purchasing an additional 773,651 shares in the last quarter. Finally, Diamant Asset Management Inc. raised its stake in Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock valued at $672,690,000 after purchasing an additional 6,720,130 shares during the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

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.