Costco Wholesale (NASDAQ:COST) Trading Down 2.5% – Should You Sell?

Shares of Costco Wholesale Corporation (NASDAQ:COST) dropped 2.5% during mid-day trading on Tuesday . The company traded as low as $996.16 and last traded at $1,002.93. Approximately 2,699,908 shares changed hands during mid-day trading, an increase of 28% from the average daily volume of 2,105,494 shares. The stock had previously closed at $1,028.24.

Key Costco Wholesale News

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

• Positive Sentiment: Bank of America reiterated a Buy rating on Costco (COST) and kept a $1,185 price target, signaling confidence in the company’s long-term growth ahead of earnings. Article Title
• Positive Sentiment: Analysts and recent coverage point to strong membership gains, digital sales growth, and AI-driven app improvements that could support continued revenue expansion. Article Title
• Neutral Sentiment: Several previews ahead of Thursday’s earnings note that Costco is expected to post solid results, but its premium valuation may keep some investors on the sidelines until the report is out. Article Title
• Negative Sentiment: A federal jury ruled against Costco (COST) in a disability discrimination lawsuit, adding legal and compliance risk and potentially increasing costs beyond the $200,000 damages award. Article Title
• Negative Sentiment: Investors are trimming exposure before earnings, suggesting pre-report de-risking and valuation pressure are contributing to the recent weakness in the shares. Article Title

Wall Street Analyst Weigh In

COST has been the topic of a number of recent research reports. Truist Financial raised their price objective on shares of Costco Wholesale from $926.00 to $977.00 and gave the company a “hold” rating in a research note on Friday, March 6th. Wells Fargo & Company raised their price objective on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the company an “equal weight” rating in a research note on Thursday, April 9th. Weiss Ratings raised shares of Costco Wholesale from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, March 17th. BTIG Research reaffirmed a “buy” rating and issued a $1,115.00 price objective on shares of Costco Wholesale in a research note on Thursday, March 5th. Finally, Rothschild & Co Redburn increased their target price on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the stock a “neutral” rating in a report on Tuesday, February 17th. Twenty-two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $1,052.60.

Costco Wholesale Trading Down 2.5%

The company’s fifty day simple moving average is $1,008.37 and its two-hundred day simple moving average is $960.97. 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 company has a market capitalization of $444.95 billion, a price-to-earnings ratio of 52.15, a price-to-earnings-growth ratio of 5.06 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, topping analysts’ consensus estimates of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The business had revenue of $69.60 billion for the quarter, compared to analyst estimates of $68.96 billion. During the same period last year, the business posted $4.02 earnings per share. The firm’s quarterly revenue was up 9.2% on a year-over-year basis. Research analysts forecast that Costco Wholesale Corporation will post 20.33 earnings per share for the current fiscal 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 given a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. This is an increase from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale’s payout ratio is 30.58%.

Insider Activity at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction dated 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 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 position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.10% of the stock is currently owned by company insiders.

Institutional Trading of Costco Wholesale

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Palisade Asset Management LLC boosted its holdings in Costco Wholesale by 1.4% in the 4th quarter. Palisade Asset Management LLC now owns 702 shares of the retailer’s stock valued at $605,000 after purchasing an additional 10 shares during the period. Graybill Wealth Management LTD. boosted its holdings in Costco Wholesale by 0.3% in the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer’s stock valued at $2,754,000 after purchasing an additional 10 shares during the period. Wealth Effects LLC boosted its holdings in Costco Wholesale by 1.2% in the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer’s stock valued at $871,000 after purchasing an additional 10 shares during the period. Folger Nolan Fleming Douglas Capital Management Inc. boosted its holdings in Costco Wholesale by 1.8% in the 1st quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer’s stock valued at $549,000 after purchasing an additional 10 shares during the period. Finally, First National Bank of Hutchinson boosted its holdings in Costco Wholesale by 0.9% in the 1st quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer’s stock valued at $1,094,000 after purchasing an additional 10 shares during the period. 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.