Costco Wholesale (NASDAQ:COST) Stock Price Down 2.1% – Here’s What Happened

Costco Wholesale Corporation (NASDAQ:COST) shares fell 2.1% during trading on Friday . The stock traded as low as $1,025.19 and last traded at $1,028.24. 2,044,030 shares were traded during trading, a decline of 3% from the average session volume of 2,099,324 shares. The stock had previously closed at $1,050.45.

Key Costco Wholesale News

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

Analyst Ratings Changes

Several brokerages have recently commented on COST. TD Cowen restated a “buy” rating on shares of Costco Wholesale in a research note on Friday, March 6th. Citigroup restated a “neutral” rating on shares of Costco Wholesale in a research note on Friday, February 20th. Raymond James Financial increased their price target on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an “outperform” rating in a research note on Friday, March 6th. Jefferies Financial Group restated a “buy” rating and set a $1,050.00 price target on shares of Costco Wholesale in a research note on Thursday, March 5th. Finally, JPMorgan Chase & Co. increased their price target on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an “overweight” rating in a research note on Friday, April 17th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Costco Wholesale presently has an average rating of “Moderate Buy” and an average target price of $1,052.60.

Costco Wholesale Trading Down 2.1%

The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. The company’s fifty day moving average is $1,007.14 and its 200-day moving average is $959.65. The firm has a market capitalization of $456.18 billion, a P/E ratio of 53.47, a P/E/G ratio of 5.28 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.55 by $0.03. The business had revenue of $69.60 billion during the quarter, compared to the consensus estimate of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. Costco Wholesale’s quarterly revenue was up 9.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.02 EPS. As a group, sell-side analysts anticipate that Costco Wholesale Corporation will post 20.33 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently disclosed 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. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. This is an increase from Costco Wholesale’s previous quarterly dividend of $1.30. Costco Wholesale’s payout ratio is currently 30.58%.

Insider Activity

In related news, EVP Claudine Adamo sold 730 shares of the company’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 sale, the executive vice president directly owned 6,121 shares of the company’s stock, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.10% of the company’s stock.

Hedge Funds Weigh In On Costco Wholesale

Several large investors have recently bought and sold shares of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in Costco Wholesale during the 4th quarter valued at $27,000. Lifetime Wealth Management P.C. acquired a new position in Costco Wholesale during the 4th quarter valued at $28,000. Mcguire Capital Advisors Inc. acquired a new position in Costco Wholesale during the 4th quarter valued at $28,000. Hurley Capital LLC raised its stake in Costco Wholesale by 120.0% during the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock valued at $31,000 after purchasing an additional 18 shares during the last quarter. Finally, Entrust Financial LLC acquired a new position in Costco Wholesale during the 4th quarter valued at $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.