Costco Wholesale (NASDAQ:COST) Trading Down 2.1% – Should You Sell?

Costco Wholesale Corporation (NASDAQ:COST) shares traded down 2.1% on Wednesday . The stock traded as low as $961.16 and last traded at $965.59. 1,883,612 shares traded hands during trading, a decline of 13% from the average session volume of 2,157,566 shares. The stock had previously closed at $986.68.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco continues to show healthy business trends, with May net sales and digital/e-commerce activity growing faster than core warehouse sales, while membership renewal rates and gasoline volumes remain supportive. How Investors May Respond To Costco (COST) Digital Momentum Amid Valuation Jitters And Macro Uncertainty
• Positive Sentiment: A Citigroup initiation with a neutral rating and a $1,020 price target suggests Wall Street still sees upside from current levels. Benzinga coverage on Citigroup initiation
• Positive Sentiment: New real-estate and infrastructure projects, including a Costco-related mixed-use development in Pompano Beach and approval for a new gas station in a Bay Area city, point to continued store expansion opportunities. Costco, multifamily on tap as mixed-use projects power Pompano Beach
• Neutral Sentiment: Several articles highlight Costco as a strong long-term consumer brand and “inflation-proof” retailer, but also note that the shares may already reflect much of that quality at a premium valuation. Should You Buy Costco Stock for the Long Haul? Here’s the Honest Answer.
• Neutral Sentiment: Retail-focused stories about tire deals, Juneteenth store hours, and popular products mainly reinforce Costco’s traffic and member appeal, but are unlikely to move the stock on their own. 3 of Costco’s best tire and wheel deals for June 2026
• Negative Sentiment: Analyst and market commentary continues to focus on Costco’s stretched valuation, and one note said the company’s growth may not fully justify the current multiple. Should You Buy Costco Stock for the Long Haul? Here’s the Honest Answer.
• Negative Sentiment: Investor sentiment was also weighed by reports that analysts are divided on COST, reinforcing concerns that the stock may be vulnerable to multiple compression if macro conditions stay tight. Costco Stock (COST) Drops as Analysts Can’t Agree on the Big-Box Retailer

Analyst Ratings Changes

A number of brokerages have recently issued reports on COST. The Goldman Sachs Group boosted their target price on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Wells Fargo & Company lifted their target price on Costco Wholesale from $950.00 to $1,000.00 and gave the company an “equal weight” rating in a research note on Thursday, April 9th. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Evercore set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday, March 2nd. Finally, Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a research note on Monday, June 1st. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $1,061.45.

Costco Wholesale Price Performance

The company’s 50-day simple moving average is $1,001.77 and its 200 day simple moving average is $969.14. The company has a market capitalization of $421.95 billion, a P/E ratio of 47.86, a P/E/G ratio of 4.68 and a beta of 0.88. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings data 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). The business had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period in the previous year, the firm posted $4.28 EPS. As a group, sell-side analysts expect that Costco Wholesale Corporation will post 20.38 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were paid a dividend of $1.47 per share. This is a boost from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date was Friday, May 1st. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio is currently 29.58%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in COST. Western Wealth Management LLC raised its holdings in Costco Wholesale by 21.0% in the 1st quarter. Western Wealth Management LLC now owns 19,195 shares of the retailer’s stock worth $19,126,000 after acquiring an additional 3,333 shares during the period. Steelhead Wealth Management LLC bought a new position in shares of Costco Wholesale in the first quarter worth about $209,000. S&A Financial Services Inc. acquired a new position in shares of Costco Wholesale during the 1st quarter worth about $1,936,000. E Wealth Partners LLC bought a new stake in Costco Wholesale during the 1st quarter valued at approximately $392,000. Finally, FAS Wealth Partners Inc. grew its holdings in Costco Wholesale by 1.4% in the 1st quarter. FAS Wealth Partners Inc. now owns 7,368 shares of the retailer’s stock valued at $7,342,000 after buying an additional 103 shares during the last quarter. 68.48% of the stock is owned by 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.