Costco Wholesale (NASDAQ:COST) Shares Down 1.2% – Here’s Why

Costco Wholesale Corporation (NASDAQ:COST) shares fell 1.2% on Tuesday . The company traded as low as $932.41 and last traded at $935.47. Approximately 2,522,181 shares traded hands during mid-day trading, an increase of 13% from the average session volume of 2,230,333 shares. The stock had previously closed at $946.68.

More Costco Wholesale News

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

• Positive Sentiment: Analysts have been raising earnings estimates for Costco, with Erste Group Bank nudging up its FY2027 EPS view above consensus, reinforcing confidence in the company’s long-term profit growth. Estimate raise article
• Positive Sentiment: New warehouse openings in Texas, South Carolina, and Southern California highlight Costco’s continued store expansion, which can support sales growth, membership gains, and market share. New warehouse expansion article
• Positive Sentiment: Several articles reiterated Costco’s appeal as a long-term compounding stock thanks to its value proposition, membership loyalty, and steady cash generation, which may keep investor sentiment constructive. Passive income article
• Neutral Sentiment: Multiple pieces asked whether a stock split could happen in 2026 now that COST trades below $1,000; this may attract attention, but it does not change fundamentals. Stock split article
• Neutral Sentiment: Market commentary also pointed out that Costco remains expensive on earnings after a strong multi-year run, suggesting the stock’s valuation may limit upside if growth moderates. Valuation article
• Negative Sentiment: One analysis warned that Costco’s fuel-related traffic boost may be losing momentum as gas prices fall, creating execution risk for a key growth engine and potentially pressuring the stock. Fuel traffic risk article

Analyst Ratings Changes

COST has been the subject of a number of research analyst reports. JPMorgan Chase & Co. upped their price objective on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an “overweight” rating in a research report on Friday, April 17th. Citigroup initiated coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 target price on the stock. Bank of America boosted their target price on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a “buy” rating in a research note on Friday, May 29th. Daiwa Securities Group upped their price target on shares of Costco Wholesale from $917.00 to $975.00 and gave the stock a “neutral” rating in a report on Tuesday, March 10th. Finally, UBS Group increased their price target on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a research note on Wednesday, May 20th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,061.45.

Costco Wholesale Trading Up 2.9%

The business’s fifty day moving average is $992.50 and its 200-day moving average is $972.25. 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 cap of $422.05 billion, a P/E ratio of 47.87, a price-to-earnings-growth ratio of 4.53 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST) last posted its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The business had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the previous year, the firm earned $4.28 earnings per share. Analysts predict that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were paid a $1.47 dividend. This is a positive change from Costco Wholesale’s previous quarterly dividend of $1.30. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale’s payout ratio is presently 29.58%.

Insider Buying and Selling at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction on Tuesday, June 23rd. The stock was 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 in the company, 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 SEC, which is available at this hyperlink. 0.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. MassMutual Private Wealth & Trust FSB lifted its stake in shares of Costco Wholesale by 0.5% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 15,898 shares of the retailer’s stock worth $14,872,000 after acquiring an additional 79 shares during the period. KERR FINANCIAL PLANNING Corp increased its position in Costco Wholesale by 5.5% during the 2nd quarter. KERR FINANCIAL PLANNING Corp now owns 579 shares of the retailer’s stock valued at $541,000 after purchasing an additional 30 shares during the period. First County Bank CT raised its holdings in Costco Wholesale by 0.5% during the 2nd quarter. First County Bank CT now owns 2,959 shares of the retailer’s stock worth $2,768,000 after purchasing an additional 14 shares during the last quarter. Miller Global Investments LLC lifted its position in shares of Costco Wholesale by 32.4% in the 2nd quarter. Miller Global Investments LLC now owns 135 shares of the retailer’s stock worth $126,000 after purchasing an additional 33 shares during the period. Finally, First Financial Bank Trust Division lifted its position in shares of Costco Wholesale by 5.5% in the 2nd quarter. First Financial Bank Trust Division now owns 362 shares of the retailer’s stock worth $339,000 after purchasing an additional 19 shares during the period. 68.48% of the stock is owned by institutional investors and hedge funds.

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.