Costco Wholesale (NASDAQ:COST) Trading Down 1.9% – What’s Next?

Costco Wholesale Corporation (NASDAQ:COST) shares dropped 1.9% during mid-day trading on Tuesday . The stock traded as low as $900.25 and last traded at $901.35. 2,184,042 shares were traded during trading, an increase of 1% from the average session volume of 2,171,365 shares. The stock had previously closed at $918.91.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Nationwide delivery expansion strengthens Costco’s membership proposition. Costco is now available across the U.S. through DoorDash, offering same-day delivery of more than 4,000 products. Its Uber Eats partnership has also expanded from 17 states to 47, covering nearly 600 warehouses. The broader reach could increase shopping frequency, attract new members, and improve retention, although delivery fees and fulfillment costs may limit the profit contribution. Costco expands US delivery reach via DoorDash and Uber Eats
• Positive Sentiment: Analysts continue to see underlying business strength. UBS described Costco’s business model as durable ahead of fiscal Q4, while Bank of America retained a Buy rating and said Costco’s value positioning may support performance amid consumer volatility. Costco also reported fiscal 2026 sales of approximately $297.3 billion, up 10.2% year over year. Costco Wholesale’s Business Model Remains Durable
• Neutral Sentiment: Fiscal Q4 earnings are the immediate catalyst. Wall Street is focused on membership trends, renewal rates, comparable sales, and margins. Some analysts have raised the possibility of a special dividend, which could support the stock, but expectations for the quarter vary considerably. Costco Q4 Earnings Expectations
• Negative Sentiment: Profitability and valuation remain key risks. Bank of America lowered its price target to $1,095 from $1,200 because of rising supply-chain costs. Oppenheimer expects core fourth-quarter earnings to miss estimates, while Costco’s roughly 45 price-to-earnings ratio and low dividend yield leave limited room for disappointment. Costco Faces Margin Pressure as BofA Cuts Price Target
• Negative Sentiment: Competitive and cost pressures are increasing. Aldi’s expansion creates another value-focused competitor, while higher Kirkland motor-oil prices and purchase limits highlight supply-chain inflation. Reports also indicate membership declined year over year, intensifying concern about Costco’s growth trajectory.

Analyst Ratings Changes

A number of analysts have commented on the company. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $1,091.00 price objective on shares of Costco Wholesale in a research report on Friday, September 4th. JPMorgan Chase & Co. cut their target price on Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating for the company in a research note on Thursday, July 9th. Oppenheimer reaffirmed an “outperform” rating and issued a $1,160.00 target price on shares of Costco Wholesale in a research report on Wednesday. Sanford C. Bernstein set a $1,144.00 price target on shares of Costco Wholesale in a research note on Friday, September 4th. Finally, Truist Financial boosted their price target on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a “hold” rating in a report on Friday, May 29th. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,052.65.

Costco Wholesale Stock Performance

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 50 day moving average price of $937.35 and a two-hundred day moving average price of $972.55. The company has a market capitalization of $395.24 billion, a P/E ratio of 44.81, a price-to-earnings-growth ratio of 3.76 and a beta of 0.86.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were given a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Friday, July 24th. Costco Wholesale’s dividend payout ratio is 29.58%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, Director Kenneth 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 transaction of $847,343.25. Following the completion of the transaction, 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 legal filing with the SEC, which can be accessed through this link. 0.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Costco Wholesale

Several large investors have recently made changes to their positions in COST. Geode Capital Management LLC increased its holdings in shares of Costco Wholesale by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer’s stock worth $8,919,573,000 after buying an additional 26,690 shares in the last quarter. Bank of America Corp DE boosted its holdings in shares of Costco Wholesale by 11.5% in the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock worth $7,488,203,000 after acquiring an additional 773,651 shares in the last quarter. Diamant Asset Management Inc. grew its position in Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after acquiring an additional 6,720,130 shares during the last quarter. Corient Private Wealth LLC grew its position in Costco Wholesale by 838.9% during the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock worth $5,282,182,000 after acquiring an additional 5,472,968 shares during the last quarter. Finally, Norges Bank acquired a new stake in Costco Wholesale during the 4th quarter valued at $5,195,415,000. Institutional investors own 68.48% of the company’s stock.

About Costco Wholesale

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.