Costco Wholesale (NASDAQ:COST) Trading Down 2.1% – What’s Next?

24 May 2026, 08:24 by Teresa Graham · The Cerbat Gem

Shares of Costco Wholesale Corporation (NASDAQ:COST – Get Free Report) dropped 2.1% during mid-day trading on Friday . The company traded as low as $1,025.19 and last traded at $1,028.24. Approximately 2,044,030 shares were traded during trading, a decline of 3% from the average daily volume of 2,099,324 shares. The stock had previously closed at $1,050.45.

Key Headlines Impacting Costco Wholesale

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

Positive Sentiment: Costco remains a top momentum and growth name, with multiple recent pieces highlighting strong long-term performance and continued investor interest as the shares trade near record levels. Why Costco (COST) is a Top Momentum Stock for the Long-Term
Positive Sentiment: Speculation about a possible stock split has intensified after Costco broke back above the $1,000 share-price milestone, which can boost sentiment by making the stock seem more accessible to retail investors. Costco Stock Split Rumors Explode as COST Smashes $1,000 Milestone Again
Positive Sentiment: Analysts and market coverage continue to point to Costco’s solid operating momentum and long-term return profile, reinforcing the view that the business is executing well even after a big run-up. A Look At Costco Wholesale (COST) Valuation As Shares Trade Near Recent Highs
Neutral Sentiment: Costco is expanding its footprint, including rezoning and land purchase activity for new locations, which supports long-term growth but is not likely to move the stock much on its own. New details emerge in proposed north Macon Costco project
Neutral Sentiment: Costco is also seeing incremental membership-related promotion and seasonal deal coverage, which may help traffic but appears too small to materially affect the share price near term. This Costco deal cuts the price of membership to $45 – here’s how to get it
Negative Sentiment: Near-term pressure is coming from valuation concerns: several articles note that Costco’s stock is already priced for strong execution, leaving little room for disappointment after the recent rally. Costco Q3 Earnings Preview: Great Business With Limited Upside
Negative Sentiment: Costco also traded lower in sympathy with Walmart after Walmart’s earnings and guidance disappointed investors, sparking broader concern about the consumer-retail backdrop. Costco Stock Dips After Walmart’s Q1 Report: What’s Going On?
Negative Sentiment: Costco is facing headlines around tariff refunds and a tax dispute in Japan, adding some legal and regulatory noise, though these issues do not appear to be the main driver of today’s move. Costco suit highlights gaps in $166B tariff refund process

Analyst Ratings Changes

COST has been the topic of a number of recent analyst reports. DA Davidson reiterated a “neutral” rating and set a $1,000.00 price target on shares of Costco Wholesale in a research report on Friday, April 10th. Roth Mkm reiterated a “sell” rating on shares of Costco Wholesale in a research report on Wednesday, February 4th. Sanford C. Bernstein reiterated an “outperform” rating and set a $1,192.00 price target on shares of Costco Wholesale in a research report on Tuesday, May 12th. Telsey Advisory Group increased their price target on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an “outperform” rating in a research report on Thursday, April 9th. Finally, JPMorgan Chase & Co. raised their target price on Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an “overweight” rating in a research report on Friday, April 17th. 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 stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $1,052.60.

Check Out Our Latest Research Report on COST

Costco Wholesale Stock Performance

The firm has a market cap of $456.18 billion, a PE ratio of 53.47, a P/E/G ratio of 5.06 and a beta of 0.92. The firm has a 50-day moving average price of $1,007.87 and a two-hundred day moving average price of $960.13. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18.

Costco Wholesale (NASDAQ:COST – Get Free Report) last released its earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share for the quarter, beating the consensus estimate of $4.55 by $0.03. The business had revenue of $69.60 billion for 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 business’s quarterly revenue was up 9.2% compared to the same quarter last year. During the same quarter last year, the business posted $4.02 earnings per share. Research analysts forecast that Costco Wholesale Corporation will post 20.33 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were given a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. This is a boost from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date was Friday, May 1st. Costco Wholesale’s dividend payout ratio (DPR) is 30.58%.

Insider Buying and Selling at Costco Wholesale

In related news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the transaction, the executive vice president owned 6,121 shares in the company, valued at approximately $6,139,485.42. This trade represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 0.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Costco Wholesale

Institutional investors have recently added to or reduced their stakes in the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale during the fourth quarter worth approximately $27,000. Mcguire Capital Advisors Inc. purchased a new position in Costco Wholesale during the fourth quarter worth approximately $28,000. Hurley Capital LLC lifted its position in 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 buying an additional 18 shares in the last quarter. Lifetime Wealth Management P.C. purchased a new position in Costco Wholesale during the fourth quarter worth approximately $28,000. Finally, Manning & Napier Advisors LLC lifted its position in Costco Wholesale by 750.0% during the first quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer’s stock worth $34,000 after buying an additional 30 shares in the last quarter. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Costco Wholesale Company Profile

(Get Free Report)

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.