Costco Wholesale (NASDAQ:COST) Shares Down 2% – Time to Sell?

Costco Wholesale Corporation (NASDAQ:COST)’s share price was down 2% during mid-day trading on Tuesday. The stock traded as low as $1,019.08 and last traded at $1,019.26. Approximately 1,845,935 shares were traded during mid-day trading, a decline of 16% from the average session volume of 2,195,377 shares. The stock had previously closed at $1,040.55.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco’s expansion of delivery through DoorDash and Uber Eats could add sales, reach younger shoppers and grow digital business without reducing warehouse traffic. Can Costco’s DoorDash and Uber Eats Expansion Drive Incremental Sales?
• Positive Sentiment: Local approval for a new Newington, New Hampshire, warehouse, targeted to open in 2027, adds to Costco’s physical expansion plans. Costco gets approval to build a new store in Newington, eyes 2027 opening
• Positive Sentiment: Costco is included among long-term stocks viewed as potentially attractive amid a shift toward defensive investments, which may support investor interest in more volatile markets. Investors Are Going Risk-Off This Election Day
• Positive Sentiment: Costco’s next quarterly dividend payment is scheduled for November 13, providing a near-term shareholder return. Costco to pay dividends next week
• Neutral Sentiment: Articles speculate that Costco could split its shares in 2027 because they trade above $1,000. A split could make shares more accessible to some investors, but it would not change the company’s underlying value or fundamentals. Costco Hasn’t Split Its Stock Since 2000
• Negative Sentiment: Exchange-traded funds were reported as net sellers of COST, offloading $75.6 million in shares on October 29. The selling could add pressure, though the report reflects a past trading session. ETFs Are Net Sellers of Costco

Wall Street Analysts Forecast Growth

COST has been the subject of a number of research reports. Deutsche Bank Aktiengesellschaft lowered their price objective on Costco Wholesale from $1,091.00 to $1,079.00 and set a “buy” rating for the company in a research report on Monday, September 28th. Robert W. Baird set a $1,175.00 target price on shares of Costco Wholesale in a research note on Friday, September 25th. CICC Research assumed coverage on shares of Costco Wholesale in a research report on Wednesday, October 21st. They set an “outperform” rating and a $1,050.00 price target for the company. Guggenheim reissued a “neutral” rating on shares of Costco Wholesale in a research note on Monday, September 28th. Finally, Raymond James Financial dropped their price target on shares of Costco Wholesale from $1,100.00 to $1,050.00 and set an “outperform” rating for the company in a research note on Friday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $1,086.19.

Costco Wholesale Stock Down 2.0%

The business has a fifty day moving average of $945.16 and a 200 day moving average of $970.75. The firm has a market cap of $451.66 billion, a P/E ratio of 49.10, a P/E/G ratio of 4.20 and a beta of 0.88. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. The firm had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The company’s revenue was up 11.1% compared to the same quarter last year. During the same quarter last year, the business earned $5.87 earnings per share. On average, equities research analysts predict that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be issued a $1.47 dividend. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s payout ratio is 28.32%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the sale, the executive vice president directly owned 7,134 shares in the company, valued at $6,534,244.62. This represents a 23.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of the firm’s stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total value of $1,054,031.00. Following the sale, the executive vice president directly owned 3,094 shares in the company, valued at approximately $2,964,701.74. This represents a 26.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is currently owned by insiders.

Institutional Trading of Costco Wholesale

Several hedge funds have recently bought and sold shares of COST. Bank of America Corp DE purchased a new stake in shares of Costco Wholesale during the 2nd quarter worth approximately $6,781,946,000. State Street Corp lifted its stake in Costco Wholesale by 31.7% in the second quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock valued at $22,359,224,000 after purchasing an additional 5,749,362 shares during the last quarter. Legal & General Group Plc bought a new position in Costco Wholesale during the second quarter valued at $2,362,188,000. Ascentis Wealth Management LLC grew its holdings in Costco Wholesale by 103,637.0% during the second quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer’s stock valued at $2,549,616,000 after purchasing an additional 2,497,652 shares during the period. Finally, Corient Private Wealth LP bought a new position in Costco Wholesale during the second quarter valued at $726,689,000. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.