Costco Wholesale (NASDAQ:COST) Shares Down 1.3% – Here’s Why

Costco Wholesale Corporation (NASDAQ:COST)’s stock price traded down 1.3% during trading on Friday . The company traded as low as $930.30 and last traded at $940.25. 2,357,238 shares changed hands during trading, a decline of 15% from the average session volume of 2,767,243 shares. The stock had previously closed at $952.89.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco is expanding same‑day delivery across Europe (Paris to Madrid), which supports international growth and services-led revenue expansion. Costco Stock (COST) has no Joie de Vivre Despite Expanding Services to Paris and Madrid
• Positive Sentiment: Analyst coverage remains generally favorable (average “Moderate Buy” / bullish writeups), offering support amid near‑term volatility. Costco Wholesale Corporation (NASDAQ:COST) Given Average Rating of “Moderate Buy” by Brokerages
• Neutral Sentiment: Costco continues product and membership promotions (Kirkland x Nike SB Dunk release, Gold Star membership digital shop card) that boost customer engagement but are unlikely to move near‑term results materially. Costco and Nike released the Kirkland x Nike SB Dunk shoes. Are they worth it? This Costco Gold Star Membership gets you a $20 Digital Costco Shop Card*
• Neutral Sentiment: Valuation remains rich (high P/E relative to peers), which can amplify reactions to news and weighs on upside in a risk‑off session. (Background market data)
• Negative Sentiment: A proposed class‑action accuses Costco of misleading customers by marketing its rotisserie chicken as having “no preservatives.” Legal risk and reputation headlines are the clearest short‑term negative catalyst. Costco Is Sued Over Preservatives in Its $5 Rotisserie Chickens Costco sued over ‘no preservatives’ claims
• Negative Sentiment: Some fund activity shows minor trimming of positions (e.g., Alpha Cubed Investments sold shares), which can add to downward pressure in a smaller‑volume selloff. Alpha Cubed Investments LLC Trims Position in Costco Wholesale Corporation $COST

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on COST shares. Northcoast Research set a $1,100.00 price objective on shares of Costco Wholesale and gave the company a “buy” rating in a report on Wednesday, December 24th. TD Cowen reiterated a “buy” rating on shares of Costco Wholesale in a report on Friday, December 12th. Wells Fargo & Company reduced their target price on shares of Costco Wholesale from $1,000.00 to $900.00 and set an “equal weight” rating for the company in a research note on Friday, December 19th. Gordon Haskett cut their target price on Costco Wholesale from $1,150.00 to $1,100.00 and set a “buy” rating on the stock in a research note on Monday, December 1st. Finally, HSBC cut their price target on shares of Costco Wholesale from $1,060.00 to $1,045.00 and set a “hold” rating on the stock in a research report on Friday, December 12th. Twenty-one equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $996.00.

Costco Wholesale Stock Down 1.3%

The stock has a market cap of $417.35 billion, a P/E ratio of 50.36, a price-to-earnings-growth ratio of 5.70 and a beta of 1.02. The firm has a 50 day simple moving average of $906.50 and a 200-day simple moving average of $929.32. The company has a quick ratio of 0.53, a current ratio of 1.04 and a debt-to-equity ratio of 0.19.

Costco Wholesale (NASDAQ:COST) last posted its earnings results on Thursday, December 11th. The retailer reported $4.34 earnings per share for the quarter, topping analysts’ consensus estimates of $4.27 by $0.07. Costco Wholesale had a return on equity of 29.35% and a net margin of 2.96%.The business had revenue of $67.31 billion for the quarter, compared to analyst estimates of $67.03 billion. During the same period in the previous year, the firm earned $4.04 EPS. The firm’s revenue was up 8.3% compared to the same quarter last year. On average, equities research analysts forecast that Costco Wholesale Corporation will post 18.03 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 13th. Stockholders of record on Friday, January 30th will be given a $1.30 dividend. The ex-dividend date of this dividend is Friday, January 30th. This represents a $5.20 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio is presently 27.85%.

Insider Activity at Costco Wholesale

In other Costco Wholesale news, Director Susan L. Decker sold 458 shares of the stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $955.00, for a total value of $437,390.00. Following the transaction, the director directly owned 8,532 shares of the company’s stock, valued at $8,148,060. This represents a 5.09% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP James C. Klauer sold 1,500 shares of the business’s stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $939.00, for a total value of $1,408,500.00. Following the sale, the executive vice president owned 44,837 shares of the company’s stock, valued at approximately $42,101,943. This represents a 3.24% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 9,315 shares of company stock worth $8,549,409 in the last quarter. 0.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Costco Wholesale

A number of large investors have recently made changes to their positions in COST. Brighton Jones LLC increased its position in Costco Wholesale by 12.3% during the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer’s stock worth $18,165,000 after acquiring an additional 2,172 shares during the period. Revolve Wealth Partners LLC grew its position in shares of Costco Wholesale by 13.1% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer’s stock worth $1,029,000 after purchasing an additional 130 shares in the last quarter. Drucker Wealth 3.0 LLC increased its holdings in shares of Costco Wholesale by 45.0% during the second quarter. Drucker Wealth 3.0 LLC now owns 657 shares of the retailer’s stock worth $645,000 after purchasing an additional 204 shares during the period. Sivia Capital Partners LLC increased its holdings in shares of Costco Wholesale by 4.5% during the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer’s stock worth $3,814,000 after purchasing an additional 165 shares during the period. Finally, Pinnacle Wealth Planning Services Inc. raised its position in shares of Costco Wholesale by 1.1% in the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer’s stock valued at $2,089,000 after buying an additional 23 shares in the last quarter. Institutional investors 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.