Costco Wholesale (NASDAQ:COST) Shares Down 1.9% – Here’s Why

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

Costco Wholesale News Roundup

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

• Positive Sentiment: E-commerce remains a growth driver. Costco’s digital sales rose 17.9% in August and 20.9% during fiscal 2026, supporting the company’s growth outlook and showing that its online business is gaining traction. Costco’s E-commerce Momentum Keeps Its Growth Engine Running
• Positive Sentiment: Tariff refunds may cushion gross-margin pressure. RBC expects higher fuel costs to weigh on Costco’s core gross margin in the fiscal fourth quarter, but potential tariff refunds could partly offset the impact. Costco Gross Margin Pressure From Higher Fuel Costs Likely to be Offset by Tariff Refunds, RBC Says
• Neutral Sentiment: Investors are focused on the upcoming earnings report. Costco is scheduled to report fiscal fourth-quarter results later this month, making sales trends, margins, membership metrics, and management’s outlook key near-term catalysts. Should You Buy Costco Stock Before Sept. 24?
• Negative Sentiment: Higher fuel and commodity costs are raising margin concerns. Surging oil prices have forced Costco to sharply increase prices on Kirkland and Mobil 1 motor oil while limiting purchases. Although the measures may protect product margins and manage shortages, they highlight supply-chain inflation and could frustrate members. Costco hikes motor oil prices and puts limits on how much members can buy
• Negative Sentiment: Valuation leaves less room for disappointment. With a P/E ratio above 45, investors may be especially sensitive to weaker margins or a cautious outlook. Costco’s recent underperformance versus the broader market adds to concerns about its premium valuation. 2 Reasons to Watch COST and 1 to Stay Cautious

Analysts Set New Price Targets

A number of research analysts recently weighed in on COST shares. Citigroup started coverage on Costco Wholesale in a report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 price objective on the stock. HC Wainwright restated a “buy” rating on shares of Costco Wholesale in a research report on Monday, June 1st. Weiss Ratings downgraded shares of Costco Wholesale from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 2nd. BTIG Research reissued a “buy” rating and set a $1,125.00 price objective on shares of Costco Wholesale in a report on Thursday, September 3rd. Finally, Royal Bank Of Canada restated a “sector perform” rating on shares of Costco Wholesale in a research report on Tuesday. Twenty-two equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $1,056.03.

Costco Wholesale Trading Down 1.9%

The firm has a market cap of $399.73 billion, a PE ratio of 45.34, a PEG ratio of 3.77 and a beta of 0.86. The business has a 50-day moving average price of $939.46 and a two-hundred day moving average price of $973.86. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61.

Costco Wholesale Dividend Announcement

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

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the firm’s stock in a transaction dated Tuesday, June 23rd. The shares were 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 approximately $4,575,653.55. This trade represents a 15.62% decrease in their position. The transaction was disclosed in a legal 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 institutional investors and hedge funds have recently modified their holdings of the business. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in Costco Wholesale in the 4th quarter valued at about $27,000. Lifetime Wealth Management P.C. purchased a new position in Costco Wholesale in the 4th quarter valued at about $28,000. C M Bidwell & Associates Ltd. acquired a new stake in shares of Costco Wholesale during the 2nd quarter worth about $28,000. Burk Holdings LLC acquired a new stake in shares of Costco Wholesale during the 2nd quarter worth about $30,000. Finally, Manning & Napier Advisors LLC purchased a new stake in shares of Costco Wholesale during the second quarter worth about $30,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Costco Wholesale Company Profile

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.