Costco Wholesale (NASDAQ:COST) Shares Down 2.4% – Should You Sell?

Costco Wholesale Corporation (NASDAQ:COST)’s stock price fell 2.4% during trading on Thursday . The stock traded as low as $978.81 and last traded at $982.57. 2,726,338 shares changed hands during trading, an increase of 12% from the average session volume of 2,442,946 shares. The stock had previously closed at $1,006.74.

More Costco Wholesale News

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

• Positive Sentiment: Q2 double‑beat — Costco reported revenue of ~$69.6B and GAAP EPS of $4.58, with comp‑store strength and membership fee growth that underpin near‑term sales momentum. This is the main catalyst supporting the rally. Costco Wholesale beats quarterly comparable sales estimates
• Positive Sentiment: Analyst upgrades and higher price targets — several brokers (notably a large Street high by BMO cited in coverage) raised targets and reiterated outperform/overweight views, adding upward pressure. Costco Stock Scores New Street‑High Price Target
• Positive Sentiment: Capital returns & balance‑sheet strength — commentary and notes on buybacks, a rising cash pile and the “special dividend” thesis are attracting income/return‑focused investors and support further upside. Costco Wholesale: Buy Now, Get Paid Later as Cash and Returns Build
• Positive Sentiment: Digital and membership momentum — online sales growth (~22.6%) and rising membership income are cited on the call as durable drivers of mix and margins, supporting investor confidence. Costco Digital Innovations Fuel 22.6% Online Growth
• Neutral Sentiment: Mixed analyst moves — while many raised targets, a few (e.g., Goldman) trimmed targets even as they kept buy calls; that creates a mix of conviction levels among institutional holders. Goldman Sachs adjusts price target on Costco
• Neutral Sentiment: Muted market reaction — despite the beat, some headlines note a tepid price move (and some pre‑market weakness) as investors weigh valuation metrics versus growth. That can lead to intraday volatility. Costco Stock Exhibits Muted Reaction Amid Double‑Beat Earnings Report
• Negative Sentiment: Valuation concerns and “red flags” narrative — some outlets argue the stock is expensive (high P/E, PEG) and list risks that could cap upside; those narratives are pressuring more value‑sensitive investors. Is Costco Too Expensive? 3 Red Flags That Could Send Shares Sliding

Analyst Ratings Changes

Several equities analysts have recently weighed in on COST shares. BMO Capital Markets raised their price objective on Costco Wholesale from $1,175.00 to $1,315.00 and gave the company an “outperform” rating in a report on Friday. Guggenheim reissued a “neutral” rating on shares of Costco Wholesale in a research report on Monday, December 22nd. Oppenheimer raised their price target on Costco Wholesale from $1,050.00 to $1,100.00 and gave the company an “outperform” rating in a research note on Thursday, February 5th. Roth Mkm reaffirmed a “sell” rating on shares of Costco Wholesale in a research report on Wednesday, February 4th. Finally, DA Davidson reiterated a “neutral” rating and set a $1,000.00 price objective on shares of Costco Wholesale in a research note on Friday. Twenty-two analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $1,035.35.

Costco Wholesale Price Performance

The company has a current ratio of 1.04, a quick ratio of 0.53 and a debt-to-equity ratio of 0.19. The firm has a market capitalization of $443.03 billion, a price-to-earnings ratio of 51.90, a P/E/G ratio of 4.70 and a beta of 1.01. The company’s 50 day moving average is $961.64 and its 200-day moving average is $936.05.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings results on Thursday, March 5th. The retailer reported $4.58 earnings per share for the quarter, topping analysts’ consensus estimates of $4.55 by $0.03. The firm had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. Costco Wholesale had a return on equity of 29.37% and a net margin of 2.99%.The business’s revenue was up 9.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $4.02 earnings per share. Equities research analysts anticipate that Costco Wholesale Corporation will post 18.03 earnings per share for the current year.

Costco Wholesale Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, February 13th. Investors 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 payout ratio is presently 27.85%.

Insiders Place Their Bets

In other Costco Wholesale news, EVP James C. Klauer sold 1,500 shares of the company’s stock in a transaction 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 transaction, the executive vice president directly owned 44,837 shares in the company, valued at $42,101,943. The trade was a 3.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Teresa A. Jones sold 850 shares of the stock in a transaction dated Wednesday, January 21st. The shares were sold at an average price of $986.26, for a total transaction of $838,321.00. Following the completion of the transaction, the executive vice president directly owned 4,228 shares in the company, valued at $4,169,907.28. The trade was a 16.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 6,915 shares of company stock worth $6,317,097 in the last quarter. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Norges Bank bought a new stake in shares of Costco Wholesale during the fourth quarter worth approximately $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 purchasing an additional 5,472,968 shares during the period. Cardano Risk Management B.V. lifted its holdings in Costco Wholesale by 907.1% during 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 purchasing an additional 1,607,833 shares during the last quarter. Laurel Wealth Advisors LLC lifted its holdings in Costco Wholesale by 96,316.6% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 1,378,758 shares of the retailer’s stock worth $1,364,888,000 after purchasing an additional 1,377,328 shares during the last quarter. Finally, Assenagon Asset Management S.A. boosted its stake in 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 valued at $980,857,000 after purchasing an additional 1,070,005 shares during the period. Institutional investors own 68.48% of the company’s stock.

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.