Costco Wholesale (NASDAQ:COST) Stock Price Down 2.2% – Here’s What Happened

Costco Wholesale Corporation (NASDAQ:COST) fell 2.2% during trading on Thursday . The company traded as low as $1,039.01 and last traded at $1,050.45. 2,146,280 shares were traded during trading, an increase of 2% from the average session volume of 2,099,930 shares. The stock had previously closed at $1,074.01.

Key Headlines Impacting Costco Wholesale

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

Wall Street Analysts Forecast Growth

COST has been the topic of a number of research reports. JPMorgan Chase & Co. upped their target price on Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an “overweight” rating in a report on Friday, April 17th. Raymond James Financial boosted their price objective on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an “outperform” rating in a research report on Friday, March 6th. Mizuho increased their target price on shares of Costco Wholesale from $1,065.00 to $1,100.00 and gave the stock an “outperform” rating in a research report on Thursday, April 16th. Bank of America began coverage on shares of Costco Wholesale in a research note on Friday, February 27th. They set a “buy” rating and a $1,185.00 target price for the company. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $1,050.00 price target on shares of Costco Wholesale in a research note on Thursday, March 5th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Costco Wholesale has a consensus rating of “Moderate Buy” and a consensus price target of $1,052.60.

Costco Wholesale Trading Down 2.1%

The company has a fifty day simple moving average of $1,007.87 and a two-hundred day simple moving average of $960.13. The company has a market capitalization of $456.18 billion, a P/E ratio of 53.47, a price-to-earnings-growth ratio of 5.17 and a beta of 0.92. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, beating analysts’ consensus estimates of $4.55 by $0.03. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The business had revenue of $69.60 billion for the quarter, compared to analyst estimates of $68.96 billion. During the same quarter in the prior year, the firm posted $4.02 EPS. The firm’s revenue for the quarter was up 9.2% on a year-over-year basis. On average, analysts forecast that Costco Wholesale Corporation will post 20.33 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were given a $1.47 dividend. This is a positive change from Costco Wholesale’s previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale’s payout ratio is 30.58%.

Insider Buying and Selling at Costco Wholesale

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. Insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

Hedge funds have recently bought and sold shares of the company. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in Costco Wholesale in the 4th quarter valued at approximately $27,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale in the fourth quarter valued at approximately $28,000. Hurley Capital LLC boosted its position in shares of Costco Wholesale by 120.0% in the third quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock valued at $31,000 after acquiring an additional 18 shares during the period. Lifetime Wealth Management P.C. acquired a new stake in shares of Costco Wholesale in the fourth quarter worth $28,000. Finally, Manning & Napier Advisors LLC grew its stake in shares of Costco Wholesale by 750.0% in the first quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer’s stock worth $34,000 after acquiring an additional 30 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors.

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.