Costco Wholesale (NASDAQ:COST) Shares Down 1.6% – Here’s Why

Costco Wholesale Corporation (NASDAQ:COST)’s stock price traded down 1.6% during trading on Wednesday . The company traded as low as $978.14 and last traded at $979.92. 1,431,234 shares changed hands during trading, a decline of 38% from the average session volume of 2,323,383 shares. The stock had previously closed at $996.16.

Costco Wholesale News Summary

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

• Positive Sentiment: Management says consumer spending at Costco remains resilient and the company’s gas business is strong, supporting revenue and cash flow stability. Why Costco Stock Is Up 16 in 2026
• Positive Sentiment: Costco plans its first standalone gas station in Mission Viejo, CA, opening by late June — a potential new format that could expand fuel volume and local market share vs. c-stores. Costco’s first standalone gas station to open by late June
• Positive Sentiment: The strength of Costco’s Kirkland private label and membership model continues to be highlighted as a durable competitive moat that supports pricing power and loyalty. How Kirkland Quietly Became Costco’s Most Powerful Moat
• Positive Sentiment: Operational/UX upgrades — new checkout tech and ongoing product introductions (Kirkland SKUs, sourdough kit) could boost throughput and basket appeal. Costco’s New Checkout Tech Could Get You Out The Door In Just Seconds
• Neutral Sentiment: Market commentary defends Costco’s premium valuation and labels it resilient in downturns — positive for long-term narrative but not an immediate catalyst. 3 Reasons Costco Stock Deserves to Trade at a Sky-High Valuation
• Neutral Sentiment: Broader macro headlines (tariff talk and energy-price volatility) could affect consumer spending and fuel costs, creating mixed near-term earnings risk. Trump tariffs live updates
• Negative Sentiment: Costco issued recalls and warnings after potential salmonella contamination in heat-and-serve/meatloaf meal kits — a consumer-safety issue that can hit sales, create remediation costs, and pressure short-term traffic. Costco recalls popular heat-and-serve meal sold at NC stores
• Negative Sentiment: Reports that some members may face higher renewal fees could raise churn risk or dampen renewals if implemented widely — a potential headwind to membership revenue growth. Some Costco members may pay more to renew their memberships

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $1,155.00 price target on shares of Costco Wholesale in a report on Monday, February 9th. Rothschild & Co Redburn boosted their target price on Costco Wholesale from $890.00 to $1,000.00 and gave the company a “neutral” rating in a research note on Tuesday, February 17th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $1,050.00 target price on shares of Costco Wholesale in a research note on Thursday, March 5th. Northcoast Research set a $1,100.00 price target on shares of Costco Wholesale and gave the stock a “buy” rating in a research note on Wednesday, December 24th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Costco Wholesale in a research note on Monday, December 29th. Twenty-two equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Costco Wholesale presently has a consensus rating of “Moderate Buy” and an average target price of $1,039.13.

Costco Wholesale Stock Performance

The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The stock has a 50 day moving average of $980.18 and a 200 day moving average of $937.82. The company has a market capitalization of $434.74 billion, a price-to-earnings ratio of 50.96, a price-to-earnings-growth ratio of 5.06 and a beta of 1.01.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings results on Thursday, March 5th. The retailer reported $4.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.55 by $0.03. The business had revenue of $69.60 billion during the quarter, compared to the consensus estimate of $68.96 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The company’s quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $4.02 EPS. As a group, analysts predict that Costco Wholesale Corporation will post 18.03 EPS for the current year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Friday, January 30th were issued a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend was Friday, January 30th. Costco Wholesale’s payout ratio is currently 27.04%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, EVP Teresa A. Jones sold 850 shares of the stock in a transaction that occurred on Wednesday, January 21st. The stock was sold at an average price of $986.26, for a total value of $838,321.00. Following the completion of the sale, the executive vice president owned 4,228 shares in the company, valued at approximately $4,169,907.28. This trade represents a 16.74% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Russell D. Miller sold 1,500 shares of Costco Wholesale stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $916.32, for a total value of $1,374,480.00. Following the sale, the executive vice president owned 8,240 shares in the company, valued at $7,550,476.80. This represents a 15.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 7,645 shares of company stock valued at $7,049,302. Insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

A number of large investors have recently added to or reduced their stakes in COST. Soundwatch Capital LLC lifted its holdings in shares of Costco Wholesale by 635.7% in the 2nd quarter. Soundwatch Capital LLC now owns 2,553 shares of the retailer’s stock worth $25,000 after acquiring an additional 2,206 shares during the last quarter. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale in the fourth quarter worth $27,000. Lifetime Wealth Management P.C. acquired a new position in shares of Costco Wholesale during the fourth quarter valued at about $28,000. Mcguire Capital Advisors Inc. acquired a new position in shares of Costco Wholesale in the fourth quarter valued at about $28,000. Finally, Hurley Capital LLC raised its holdings in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock worth $31,000 after purchasing an additional 18 shares during the last quarter. 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.