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

Costco Wholesale Corporation (NASDAQ:COST) traded down 1.2% during mid-day trading on Tuesday . The stock traded as low as $959.89 and last traded at $960.01. Approximately 1,280,374 shares traded hands during mid-day trading, a decline of 42% from the average session volume of 2,189,307 shares. The stock had previously closed at $971.40.

More Costco Wholesale News

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

• Positive Sentiment: Costco’s growing AI-driven search traffic reportedly has its highest conversion rate, suggesting a potential catalyst for online sales and improved digital engagement. Will Costco’s AI Search Growth Become a Meaningful Sales Catalyst?
• Positive Sentiment: A Zacks screen identified Costco as a retailer that could potentially beat upcoming earnings estimates, offering support for investor expectations. The company’s latest quarter also delivered revenue above consensus, although EPS narrowly missed estimates. These 2 Retail and Wholesale Stocks Could Beat Earnings
• Positive Sentiment: Golden Reserve Retirement LLC increased its COST holding by 133.9%, a modest institutional vote of confidence, though the position remains small. Golden Reserve Retirement LLC Increases Position in Costco
• Neutral Sentiment: Articles highlighting Costco’s inexpensive grocery items, money-saving shopping strategies and healthy school snacks reinforce the brand’s value proposition and customer loyalty, but are unlikely to materially affect near-term earnings. How a Mom Maximizes Costco Grocery Runs
• Neutral Sentiment: The planned 24-hour Labor Day closure is customary and should have limited financial impact. Costco Will Shut Down for 24 Hours
• Negative Sentiment: Costco’s defense against a customer lawsuit over tariffs weakened after the company began recouping certain duties, potentially increasing refund obligations and legal costs. Costco Fights Customer’s Tariff Suit as Refunds Flow
• Negative Sentiment: Comments describing Costco as “permacostly” highlight valuation pressure: the stock trades at a high earnings multiple, leaving less room for disappointment after its recent narrow EPS miss. Michael Burry Discusses Costco’s Valuation

Analysts Set New Price Targets

A number of brokerages have recently weighed in on COST. HC Wainwright reissued a “buy” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Bank of America increased their target price on Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a “buy” rating in a report on Friday, May 29th. Weiss Ratings downgraded Costco Wholesale from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, June 23rd. Truist Financial boosted their price target on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a report on Friday, May 29th. Finally, Royal Bank Of Canada began coverage on shares of Costco Wholesale in a research note on Monday, July 13th. They issued a “sector perform” rating and a $1,000.00 target price for the company. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $1,059.53.

Costco Wholesale Stock Down 1.2%

The stock has a fifty day moving average of $946.98 and a two-hundred day moving average of $980.99. The stock has a market cap of $425.74 billion, a price-to-earnings ratio of 48.29, a PEG ratio of 4.51 and a beta of 0.87. 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). 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 analysts’ expectations of $70.12 billion. During the same quarter in the prior year, the firm earned $4.28 earnings per share. As a group, analysts predict that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale’s dividend payout ratio is 29.58%.

Insider Activity

In related news, Director Kenneth D. Denman sold 885 shares of the firm’s stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the sale, the director directly owned 4,779 shares in the company, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

Several large investors have recently bought and sold shares of COST. California State Teachers Retirement System lifted its position in shares of Costco Wholesale by 91,744.7% during the second quarter. California State Teachers Retirement System now owns 631,103,610 shares of the retailer’s stock worth $590,378,494,000 after purchasing an additional 630,416,468 shares in the last quarter. Bank of America Corp DE purchased a new stake in Costco Wholesale during the 2nd quarter worth $6,781,946,000. Diamant Asset Management Inc. increased its stake 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 buying an additional 6,720,130 shares during the period. Norges Bank acquired a new stake in shares of Costco Wholesale during the fourth quarter valued at about $5,195,415,000. Finally, Corient Private Wealth LLC increased its position in shares of Costco Wholesale by 838.9% during the fourth 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. 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.