Costco Wholesale (NASDAQ:COST) Shares Down 3.3% – Time to Sell?
by Jessica Moore · The Cerbat GemCostco Wholesale Corporation (NASDAQ:COST – Get Free Report) shares dropped 3.3% during mid-day trading on Friday . The stock traded as low as $995.50 and last traded at $998.47. Approximately 2,327,485 shares were traded during trading, an increase of 6% from the average daily volume of 2,191,264 shares. The stock had previously closed at $1,032.03.
Key Headlines Impacting Costco Wholesale
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Costco reported a blowout March retail month: net sales rose 11.3% to $28.41B, digital sales surged and traffic/transactions climbed — a clear short‑term revenue catalyst that supports the company’s growth trajectory. GlobeNewswire: March Sales Results
- Positive Sentiment: Several brokers raised targets or reiterated Buy views (Deutsche Bank, Telsey, Wells Fargo, William Blair/Goldman maintained bullish stances), providing analyst support that can underpin medium‑term upside. Deutsche Bank price target raise Wells Fargo forecast
- Positive Sentiment: Viral consumer interest in new SKUs (notably one‑ounce gold bars) is driving short‑term traffic, sellouts and brand visibility beyond typical merchandise — a revenue/PR tailwind. Yahoo: Costco Gold Bars
- Neutral Sentiment: Media and TV commentators (e.g., Jim Cramer) are flagging operational catalysts such as fuel pricing and membership strength — useful color for sentiment but not new company guidance. InsiderMonkey: Cramer catalysts
- Negative Sentiment: Valuation is a clear headwind: commentary from Seeking Alpha and others notes Costco trades at a premium (roughly ~50x EPS); some investors and firms caution upside is limited absent margin/earnings acceleration. Seeking Alpha: Valuation concerns
- Negative Sentiment: Wider market volatility (geo‑political headlines and S&P futures weakness) pressured retail names today, contributing to Costco’s pullback as investors de‑risk across sectors. Benzinga: Market volatility
Wall Street Analysts Forecast Growth
COST has been the subject of several research reports. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Costco Wholesale from $1,103.00 to $1,104.00 and gave the stock a “buy” rating in a research note on Thursday. BTIG Research restated a “buy” rating and issued a $1,115.00 target price on shares of Costco Wholesale in a research note on Thursday, March 5th. BMO Capital Markets upped their target price on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the company an “outperform” rating in a research note on Friday, March 6th. Telsey Advisory Group upped their target price on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an “outperform” rating in a research note on Thursday. Finally, Northcoast Research set a $1,100.00 target price on shares of Costco Wholesale and gave the company a “buy” rating in a research note on Wednesday, December 24th. 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. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $1,043.13.
Costco Wholesale Stock Down 3.3%
The firm has a market capitalization of $442.97 billion, a PE ratio of 51.92, a P/E/G ratio of 5.09 and a beta of 0.99. The firm’s 50 day moving average price is $994.33 and its two-hundred day moving average price is $942.50. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18.
Costco Wholesale (NASDAQ:COST – Get Free Report) last posted its quarterly earnings results on Thursday, March 5th. The retailer reported $4.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.55 by $0.03. The firm had revenue of $69.60 billion for the quarter, compared to analysts’ expectations of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The firm’s quarterly revenue was up 9.2% on a year-over-year basis. During the same period in the prior year, the company posted $4.02 earnings per share. As a group, research analysts forecast that Costco Wholesale Corporation will post 18.03 EPS for the current fiscal year.
Costco Wholesale Announces Dividend
The business also recently declared a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, January 30th were issued a $1.30 dividend. The ex-dividend date of this dividend was Friday, January 30th. This represents a $5.20 annualized dividend and a yield of 0.5%. Costco Wholesale’s dividend payout ratio is currently 27.04%.
Insider Activity at Costco Wholesale
In other Costco Wholesale news, EVP Teresa A. Jones sold 850 shares of the stock in a transaction on Wednesday, January 21st. The shares were sold at an average price of $986.26, for a total transaction of $838,321.00. Following the sale, the executive vice president directly owned 4,228 shares of the company’s stock, valued at approximately $4,169,907.28. This represents a 16.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Susan L. Decker sold 458 shares of the stock in a transaction on Friday, January 16th. The stock was sold at an average price of $955.00, for a total transaction of $437,390.00. Following the sale, the director directly owned 8,532 shares in the company, valued at $8,148,060. This trade represents a 5.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 3,538 shares of company stock valued at $3,416,416. Insiders own 0.10% of the company’s stock.
Institutional Trading of Costco Wholesale
A number of institutional investors and hedge funds have recently modified their holdings of COST. Norges Bank acquired a new stake in shares of Costco Wholesale in the 4th quarter worth about $5,195,415,000. Corient Private Wealth LLC increased its holdings in shares of Costco Wholesale by 838.9% in the 4th 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. increased its holdings in shares of Costco Wholesale by 907.1% in the 4th quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer’s stock worth $1,539,346,000 after acquiring an additional 1,607,833 shares during the period. Assenagon Asset Management S.A. increased its holdings in shares of Costco Wholesale by 1,586.8% in the 4th quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer’s stock worth $980,857,000 after acquiring an additional 1,070,005 shares during the period. Finally, Amundi increased its holdings in shares of Costco Wholesale by 45.0% in the 3rd quarter. Amundi now owns 3,176,606 shares of the retailer’s stock worth $2,893,697,000 after acquiring an additional 986,182 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.