Costco Wholesale (NASDAQ:COST) Trading Down 1.6% – Should You Sell?

Shares of Costco Wholesale Corporation (NASDAQ:COST) dropped 1.6% during trading on Wednesday . The stock traded as low as $993.50 and last traded at $996.08. Approximately 1,894,285 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 2,607,733 shares. The stock had previously closed at $1,012.05.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: New store expansion — a small Texas town is set to get a $62M Costco this spring, signaling continued unit growth and local revenue upside. Read More.
• Positive Sentiment: New online services — Costco is rolling out custom/online cake ordering via its app and website, which can boost ancillary foodservice sales and member engagement. Read More.
• Positive Sentiment: Food‑court product buzz — recent new dessert and limited‑time menu items are generating positive member reaction, helping store traffic and impulse spend. Read More.
• Positive Sentiment: Dividend income — Costco is paying its regular February dividend, a cash return that supports income investors and shareholder sentiment. Read More.
• Neutral Sentiment: Analyst price target tweak — Rothschild & Co Redburn raised its price target to $1,000 but kept a neutral rating, a mild affirmation of valuation without an upgrade. Read More.
• Neutral Sentiment: Valuation and ETF concentration commentary — pieces question upside after recent gains and note Costco’s heavy weighting alongside Walmart in defensive ETF XLP, which may affect demand dynamics but isn’t a direct company event. Read More. Read More.
• Neutral Sentiment: Short‑interest note — published short‑interest data showed no meaningful days‑to‑cover signal in the latest snapshot; not driving today’s move.
• Negative Sentiment: Gift‑card risk and recall — Costco issued a recall on certain restaurant gift cards, and a gift‑card issuer recently filed for bankruptcy, creating potential customer refunds, reputation risk and transactional disruption. Read More. Read More.
• Negative Sentiment: Legal risk — a U.S. class action over alleged salmonella risk has been filed, introducing potential litigation exposure and headline risk. Read More.
• Negative Sentiment: Tariff and margin pressure — reporting indicates Costco is engaging on tariff impacts while some peers stay out, which could pressure costs/margins if tariffs stick or sourcing shifts are needed. Read More.
• Negative Sentiment: Member sentiment and operational changes — commentary that “the easy days are over” and some menu/deli rule changes could signal tougher comps or shifting member expectations. Read More.

Analyst Ratings Changes

A number of research analysts recently issued reports on COST shares. Hovde Group started coverage on shares of Costco Wholesale in a research report on Tuesday, November 18th. They set a “market perform” rating and a $16.00 target price for the company. Sanford C. Bernstein reiterated an “outperform” rating and set a $1,155.00 price objective on shares of Costco Wholesale in a research note on Monday, February 9th. Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a research note on Monday, December 22nd. Gordon Haskett lifted their price target on Costco Wholesale from $1,000.00 to $1,100.00 in a research report on Tuesday, February 3rd. Finally, DA Davidson restated a “neutral” rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a research report on Thursday, February 5th. Twenty-one investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Costco Wholesale presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,008.07.

Costco Wholesale Price Performance

The company has a quick ratio of 0.53, a current ratio of 1.04 and a debt-to-equity ratio of 0.19. The firm has a market capitalization of $442.13 billion, a PE ratio of 53.35, a PEG ratio of 5.37 and a beta of 1.01. The stock has a 50-day moving average price of $928.05 and a 200 day moving average price of $933.51.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings results on Thursday, December 11th. The retailer reported $4.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.27 by $0.07. Costco Wholesale had a net margin of 2.96% and a return on equity of 29.35%. The firm had revenue of $67.31 billion for the quarter, compared to analysts’ expectations of $67.03 billion. During the same quarter last year, the company earned $4.04 EPS. The firm’s revenue for the quarter was up 8.3% compared to the same quarter last year. Equities analysts forecast that Costco Wholesale Corporation will post 18.03 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Friday, January 30th were issued a dividend of $1.30 per share. The ex-dividend date of this dividend was Friday, January 30th. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.5%. Costco Wholesale’s dividend payout ratio is presently 27.85%.

Insiders Place Their Bets

In other Costco Wholesale news, EVP Russell D. Miller sold 1,500 shares of the firm’s stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $916.32, for a total value of $1,374,480.00. Following the transaction, the executive vice president directly owned 8,240 shares of the company’s stock, valued at $7,550,476.80. This trade represents a 15.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP James C. Klauer sold 1,500 shares of the company’s stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $939.00, for a total value of $1,408,500.00. Following the completion of the sale, the executive vice president owned 44,837 shares of the company’s stock, valued at $42,101,943. This trade represents a 3.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 6,915 shares of company stock valued at $6,317,097. Corporate insiders own 0.10% of the company’s stock.

Hedge Funds Weigh In On Costco Wholesale

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC increased its holdings in shares of Costco Wholesale by 12.3% during the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer’s stock worth $18,165,000 after buying an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC grew its position in Costco Wholesale by 13.1% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer’s stock worth $1,029,000 after acquiring an additional 130 shares during the period. Sivia Capital Partners LLC increased its stake in Costco Wholesale by 4.5% during the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer’s stock worth $3,814,000 after acquiring an additional 165 shares during the last quarter. Pinnacle Wealth Planning Services Inc. raised its position in Costco Wholesale by 1.1% in the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer’s stock valued at $2,089,000 after purchasing an additional 23 shares during the period. Finally, Capital & Planning LLC raised its position in Costco Wholesale by 4.1% in the second quarter. Capital & Planning LLC now owns 3,567 shares of the retailer’s stock valued at $3,532,000 after purchasing an additional 140 shares during the period. Institutional investors and hedge funds 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.