Costco Wholesale (NASDAQ:COST) Stock Price Down 1.2% – Time to Sell?

Shares of Costco Wholesale Corporation (NASDAQ:COST) traded down 1.2% during trading on Wednesday . The company traded as low as $920.55 and last traded at $924.67. 2,896,839 shares traded hands during trading, an increase of 29% from the average session volume of 2,238,698 shares. The stock had previously closed at $935.47.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco continues to expand its warehouse footprint, with reports of a new store approved in California and additional locations planned in Florida and South Carolina. New store openings can support membership growth and sales over time. New Costco approved in California, but some locals say location is ‘unnecessary’
• Positive Sentiment: Costco began alcohol sales at a Pennsylvania store, which may modestly boost traffic and per-customer spending while expanding convenience for members. Costco Wholesale begins alcohol sales at Pennsylvania store
• Positive Sentiment: Some commentary highlighted Costco’s low-priced gas as a driver of customer visits, reinforcing the company’s “loss leader” strategy that can support membership loyalty and in-store traffic. Costco shares surprising move members don’t make
• Neutral Sentiment: Several articles discussed whether Costco stock still deserves a stock split, but there was no indication of an imminent split decision. This is mostly a sentiment/interest story rather than a direct business catalyst. With Costco Trading Under $1,000, Is a Stock Split Still on the Table for 2026?
• Neutral Sentiment: Analysts and commentators continued to frame Costco as a high-quality defensive retailer, but also an expensive stock on earnings metrics. That supports the long-term case, while limiting upside if growth slows. Costco (COST) Stock Looks Strong On Returns But Expensive On Earnings
• Negative Sentiment: One recent analysis argued that Costco’s gas-related membership growth engine may be running out of steam as fuel prices ease, which could pressure traffic and make execution more important going forward. Costco’s Secret Growth Engine May Be Running Out of Gas
• Negative Sentiment: Another report said Costco has underperformed the S&P 500 over the past three months, reflecting investor caution around valuation and slower relative momentum. Why Costco Stock (COST) Underperformed the S&P 500 Over the Past 3 Months

Wall Street Analyst Weigh In

A number of research firms have weighed in on COST. Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Truist Financial upped their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a research report on Friday, May 29th. TD Cowen reissued a “buy” rating and set a $1,175.00 target price on shares of Costco Wholesale in a research report on Wednesday, June 3rd. UBS Group boosted their target price on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a “buy” rating in a research note on Wednesday, May 20th. Finally, DA Davidson reaffirmed a “neutral” rating and issued a $1,000.00 price target on shares of Costco Wholesale in a report on Thursday, June 4th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,061.45.

Costco Wholesale Price Performance

The firm’s 50 day simple moving average is $991.42 and its 200-day simple moving average is $972.72. The company has a market cap of $422.05 billion, a price-to-earnings ratio of 47.87, a P/E/G ratio of 4.48 and a beta of 0.88. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61.

Costco Wholesale (NASDAQ:COST) last posted its earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The firm had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same quarter last year, the firm posted $4.28 EPS. As a group, sell-side analysts anticipate that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were given a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a yield of 0.6%. This is a positive change from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale’s dividend payout ratio is presently 29.58%.

Insiders Place Their Bets

In other news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares of the company’s stock, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.10% of the company’s stock.

Hedge Funds Weigh In On Costco Wholesale

A number of institutional investors have recently modified their holdings of COST. Diamant Asset Management Inc. lifted its stake in shares of Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after acquiring an additional 6,720,130 shares during the period. Norges Bank purchased a new stake in shares of Costco Wholesale in the fourth quarter valued at about $5,195,415,000. Corient Private Wealth LLC increased its stake in shares of Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock worth $5,282,182,000 after acquiring an additional 5,472,968 shares during the period. Cardano Risk Management B.V. raised its holdings in Costco Wholesale by 907.1% during the fourth quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer’s stock worth $1,539,346,000 after purchasing an additional 1,607,833 shares in the last quarter. Finally, Assenagon Asset Management S.A. lifted its position in Costco Wholesale by 1,586.8% in the fourth quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer’s stock valued at $980,857,000 after purchasing an additional 1,070,005 shares during the period. 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.