Costco Wholesale (NASDAQ:COST) Shares Down 2.5% – Time to Sell?

Costco Wholesale Corporation (NASDAQ:COST)’s share price traded down 2.5% during mid-day trading on Thursday . The company traded as low as $925.77 and last traded at $933.51. Approximately 2,457,107 shares changed hands during trading, an increase of 12% from the average daily volume of 2,193,816 shares. The stock had previously closed at $956.99.

More Costco Wholesale News

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

• Positive Sentiment: Medicare expansion creates a new growth opportunity. Costco is partnering with nonprofit SCAN Group to offer Costco-branded Medicare Advantage and supplemental plans, initially in a limited number of states. The initiative targets Costco’s large, aging membership base and could deepen customer loyalty while giving the retailer exposure to the roughly $600 billion Medicare market. The Biggest Players in a $500 Billion Market Are Exiting. Here’s Why Costco Just Entered.
• Positive Sentiment: Shareholder returns are improving. Costco raised its dividend by 13.1%, reinforcing its reputation for consistent cash generation. Reports also point to a growing cash balance and speculation that the company could declare another special dividend, although no such payment is confirmed. Costco Just Upped Its Dividend by 13.1%.
• Positive Sentiment: Additional businesses could support long-term growth. Costco is expanding retail media, AI-powered search and pharmacy operations alongside its membership model and Kirkland Signature brand, potentially adding higher-margin revenue streams beyond warehouse sales. Costco Is Quietly Building Its Next Big Growth Engine
• Neutral Sentiment: Medicare’s impact will take time to assess. The SCAN partnership broadens Costco’s business mix, but the limited rollout means near-term financial benefits are uncertain. Investors will focus on enrollment, profitability and execution in a regulated industry. Costco Enters the Medicare Insurance Market
• Negative Sentiment: Expectations remain demanding. Costco trades at a high earnings multiple, while its latest quarterly EPS of $4.93 narrowly missed the $4.94 consensus estimate, despite revenue exceeding expectations. That combination can pressure the stock when investors require strong execution to justify the valuation.

Wall Street Analyst Weigh In

Several analysts recently issued reports on COST shares. Roth Capital upped their price objective on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a research note on Friday, May 29th. Guggenheim reissued a “neutral” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $1,120.00 target price on shares of Costco Wholesale in a report on Thursday, August 6th. Mizuho set a $1,100.00 price target on Costco Wholesale in a research report on Monday, June 1st. 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 research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Costco Wholesale presently has an average rating of “Moderate Buy” and a consensus price target of $1,059.53.

Costco Wholesale Stock Down 2.5%

The business’s 50 day moving average price is $948.67 and its 200-day moving average price is $981.23. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The firm has a market capitalization of $413.99 billion, a PE ratio of 46.96, a P/E/G ratio of 4.57 and a beta of 0.87.

Costco Wholesale (NASDAQ:COST) last posted its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate 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 period in the previous year, the company posted $4.28 EPS. As a group, equities research analysts forecast that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were paid a dividend of $1.47 per share. The ex-dividend date was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s dividend payout ratio is 29.58%.

Insider Activity

In other news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the sale, the director 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

Several large investors have recently added to or reduced their stakes in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of Costco Wholesale in the fourth quarter worth $27,000. Lifetime Wealth Management P.C. acquired a new stake in shares of Costco Wholesale in the fourth quarter valued at $28,000. C M Bidwell & Associates Ltd. acquired a new stake in shares of Costco Wholesale in the second quarter valued at $28,000. Mcguire Capital Advisors Inc. purchased a new position in Costco Wholesale in the fourth quarter valued at $28,000. Finally, Burk Holdings LLC purchased a new position in Costco Wholesale in the second quarter valued at $30,000. 68.48% of the stock is owned by hedge funds and other 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.