Costco Wholesale (NASDAQ:COST) Stock Price Down 1.9% – Here’s Why

Costco Wholesale Corporation (NASDAQ:COST) shares fell 1.9% during mid-day trading on Thursday . The company traded as low as $949.68 and last traded at $955.1740. Approximately 2,305,715 shares were traded during trading, an increase of 3% from the average daily volume of 2,242,850 shares. The stock had previously closed at $974.03.

More Costco Wholesale News

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

• Positive Sentiment: Analysts and financial publications continue to highlight Costco’s strong momentum, durable membership model, consistent profit growth and long-term shareholder returns. One analysis suggests the retailer could eventually pursue trillion-dollar-company status if it sustains warehouse expansion, membership growth and operating execution. Why Costco Is a Strong Momentum Stock
• Positive Sentiment: Costco’s reported experiment with expanding or changing gasoline sales could create another source of traffic, member engagement and revenue over time, although the financial impact remains uncertain. Costco Gasoline Sales Experiment
• Positive Sentiment: New product partnerships and continued customer interest—including expanded beverage distribution and popular food offerings—reinforce Costco’s ability to attract shoppers and support sales, though these developments are not expected to materially change near-term earnings. Coco5 Costco Partnership

Analysts Set New Price Targets

A number of research firms have recently weighed in on COST. HC Wainwright reiterated a “buy” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Oppenheimer lifted their price objective on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an “outperform” rating in a research note on Tuesday, May 19th. Roth Capital upped their target price on Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a research note on Friday, May 29th. DA Davidson reiterated a “neutral” rating and set a $1,000.00 price target on shares of Costco Wholesale in a research report on Thursday, June 4th. Finally, The Goldman Sachs Group lifted their target price on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a “buy” rating in a report on Friday, May 29th. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $1,059.07.

Costco Wholesale Stock Down 0.2%

The stock has a market cap of $422.14 billion, a price-to-earnings ratio of 47.88, a PEG ratio of 4.61 and a beta of 0.88. The business’s 50 day moving average is $955.42 and its 200-day moving average is $982.10. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). The company had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same quarter in the prior year, the company posted $4.28 earnings per share. On average, sell-side analysts predict that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Friday, July 24th will be paid a $1.47 dividend. The ex-dividend date of this dividend is Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is currently 29.58%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the business’s stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares in the company, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Palisade Asset Management LLC lifted its stake in shares of Costco Wholesale by 1.4% in the fourth quarter. Palisade Asset Management LLC now owns 702 shares of the retailer’s stock worth $605,000 after buying an additional 10 shares in the last quarter. Graybill Wealth Management LTD. grew its stake in Costco Wholesale by 0.3% during the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer’s stock valued at $2,754,000 after acquiring an additional 10 shares in the last quarter. Wealth Effects LLC grew its stake in Costco Wholesale by 1.2% during the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer’s stock valued at $871,000 after acquiring an additional 10 shares in the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. raised 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 acquiring an additional 10 shares during the last quarter. Finally, First National Bank of Hutchinson lifted its stake 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 worth $1,094,000 after purchasing an additional 10 shares in the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.

About Costco Wholesale

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.