Costco Wholesale (NASDAQ:COST) Stock Price Down 1% – Should You Sell?

Costco Wholesale Corporation (NASDAQ:COST) dropped 1% on Friday . The company traded as low as $914.54 and last traded at $915.74. Approximately 2,051,826 shares were traded during mid-day trading, a decline of 6% from the average session volume of 2,175,999 shares. The stock had previously closed at $925.41.

More Costco Wholesale News

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

• Positive Sentiment: Costco reported August net sales of $23.7 billion, up 9.9% year over year. Comparable sales increased 8.4% companywide, while digitally enabled sales rose 17.9%. Fourth-quarter sales climbed 11.3% to $93.9 billion, reinforcing the view that membership demand and e-commerce remain resilient. Costco’s August Sales Rise 9.9% as Digital Growth Stays Strong
• Positive Sentiment: Analysts at BTIG and Bank of America reiterated Buy ratings, citing strong August sales, market-share gains and durable core performance. Their price targets of $1,125 and $1,200, respectively, imply meaningful upside if Costco sustains its growth. Analyst Robert Drbul Reaffirms Buy on Costco
• Neutral Sentiment: DA Davidson reaffirmed its Neutral rating with a $1,000 target, while Bernstein maintained Buy but reduced its target to $1,144. The revisions suggest analysts remain constructive but are scrutinizing Costco’s premium valuation.
• Neutral Sentiment: Costco’s valuation remains demanding at roughly 46 times earnings. Commentators including Jim Cramer have placed the stock in a “penalty box,” arguing that excellent execution may already be reflected in the share price. Costco Stock Is Priced For Two Good Years
• Negative Sentiment: The Department of Justice expanded an antitrust inquiry into beef pricing to include Costco, seeking records on retail prices, costs, margins and purchasing strategies. The investigation could create regulatory, legal or operational uncertainty. Costco Drawn Into Expanded DOJ Beef Pricing Antitrust Probe
• Negative Sentiment: Costco abruptly discontinued its Costco Next online partner-service benefit, removing a member perk and raising questions about the company’s digital strategy, although the direct financial impact appears limited. Costco Has Ended This Online Service Without Notice

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a report on Monday, June 1st. BTIG Research restated a “buy” rating and issued a $1,125.00 price target on shares of Costco Wholesale in a research report on Thursday. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $1,091.00 price objective on shares of Costco Wholesale in a research report on Friday. Royal Bank Of Canada assumed coverage on Costco Wholesale in a research report on Monday, July 13th. They set a “sector perform” rating and a $1,000.00 target price on the stock. Finally, Bank of America increased their price target on Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a “buy” rating in a research report on Friday, May 29th. Twenty-one research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $1,056.90.

Costco Wholesale Stock Performance

The firm’s 50-day simple moving average is $944.31 and its two-hundred day simple moving average is $978.18. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The stock has a market capitalization of $406.11 billion, a PE ratio of 46.06, a PEG ratio of 3.85 and a beta of 0.86.

Costco Wholesale Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were given 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 (DPR) is presently 29.58%.

Insider Buying and Selling at Costco Wholesale

In other news, Director Kenneth Denman sold 885 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The shares were 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 $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Costco Wholesale

A number of institutional investors have recently modified their holdings of the stock. Palisade Asset Management LLC grew its stake in Costco Wholesale by 1.4% in the fourth quarter. Palisade Asset Management LLC now owns 702 shares of the retailer’s stock valued at $605,000 after purchasing an additional 10 shares in the last quarter. Graybill Wealth Management LTD. lifted its holdings in shares of Costco Wholesale by 0.3% during the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer’s stock valued at $2,754,000 after buying an additional 10 shares during the last quarter. Wealth Effects LLC lifted its holdings in shares of Costco Wholesale by 1.2% during the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer’s stock valued at $871,000 after buying an additional 10 shares during the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. grew its stake in shares of Costco Wholesale by 1.8% in the 1st quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer’s stock valued at $549,000 after buying an additional 10 shares in the last quarter. Finally, First National Bank of Hutchinson increased its holdings in Costco Wholesale by 0.9% in the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer’s stock worth $1,094,000 after buying an additional 10 shares during the last quarter. 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.