Costco Wholesale (NASDAQ:COST) Shares Down 2% – What’s Next?

Costco Wholesale Corporation (NASDAQ:COST) fell 2% during trading on Tuesday. The company traded as low as $1,019.08 and last traded at $1,019.26. Approximately 1,845,935 shares traded hands during trading, a decline of 16% from the average session volume of 2,195,377 shares. The stock had previously closed at $1,040.55.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco’s expansion of delivery through DoorDash and Uber Eats could add sales, reach younger shoppers and grow digital business without reducing warehouse traffic. Can Costco’s DoorDash and Uber Eats Expansion Drive Incremental Sales?
• Positive Sentiment: Local approval for a new Newington, New Hampshire, warehouse, targeted to open in 2027, adds to Costco’s physical expansion plans. Costco gets approval to build a new store in Newington, eyes 2027 opening
• Positive Sentiment: Costco is included among long-term stocks viewed as potentially attractive amid a shift toward defensive investments, which may support investor interest in more volatile markets. Investors Are Going Risk-Off This Election Day
• Positive Sentiment: Costco’s next quarterly dividend payment is scheduled for November 13, providing a near-term shareholder return. Costco to pay dividends next week
• Neutral Sentiment: Articles speculate that Costco could split its shares in 2027 because they trade above $1,000. A split could make shares more accessible to some investors, but it would not change the company’s underlying value or fundamentals. Costco Hasn’t Split Its Stock Since 2000
• Negative Sentiment: Exchange-traded funds were reported as net sellers of COST, offloading $75.6 million in shares on October 29. The selling could add pressure, though the report reflects a past trading session. ETFs Are Net Sellers of Costco

Analyst Ratings Changes

A number of brokerages recently issued reports on COST. Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a research note on Monday, September 28th. UBS Group reiterated a “buy” rating on shares of Costco Wholesale in a research report on Thursday, September 17th. Raymond James Financial reduced their target price on shares of Costco Wholesale from $1,100.00 to $1,050.00 and set an “outperform” rating for the company in a research note on Friday, September 25th. Royal Bank Of Canada restated a “sector perform” rating and set a $1,000.00 price target on shares of Costco Wholesale in a research note on Friday, October 9th. Finally, Mizuho dropped their price target on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating on the stock in a research note on Friday, September 25th. One analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Costco Wholesale has an average rating of “Moderate Buy” and an average price target of $1,086.19.

Costco Wholesale Price Performance

The business’s 50-day moving average price is $945.16 and its 200 day moving average price is $970.75. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. The company has a market capitalization of $451.66 billion, a P/E ratio of 49.10, a price-to-earnings-growth ratio of 4.20 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating the consensus estimate of $6.54 by $0.21. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The company had revenue of $95.72 billion during the quarter, compared to analysts’ expectations of $94.97 billion. During the same quarter in the previous year, the company earned $5.87 earnings per share. Costco Wholesale’s revenue for the quarter was up 11.1% on a year-over-year basis. Analysts anticipate that Costco Wholesale Corporation will post 22.70 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Friday, October 30th. Costco Wholesale’s payout ratio is 28.32%.

Insider Buying and Selling at Costco Wholesale

In related news, EVP William Richard Wilcox sold 1,100 shares of Costco Wholesale stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the sale, the executive vice president owned 3,094 shares of the company’s stock, valued at approximately $2,964,701.74. This trade represents a 26.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Claudine Adamo sold 2,200 shares of the company’s stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the transaction, the executive vice president owned 7,134 shares in the company, valued at $6,534,244.62. This represents a 23.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

Large investors have recently modified their holdings of the business. State Street Corp increased its position in shares of Costco Wholesale by 31.7% during the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock valued at $22,359,224,000 after purchasing an additional 5,749,362 shares during the last quarter. Bank of America Corp DE lifted its position in 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 buying an additional 773,651 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Costco Wholesale by 5.5% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,068,312 shares of the retailer’s stock worth $2,870,314,000 after buying an additional 160,893 shares during the last quarter. Amundi boosted its stake in Costco Wholesale by 11.1% in the first quarter. Amundi now owns 2,839,016 shares of the retailer’s stock worth $2,828,881,000 after buying an additional 283,360 shares in the last quarter. Finally, Legal & General Group Plc purchased a new stake in Costco Wholesale in the second quarter worth approximately $2,362,188,000. Institutional investors own 68.48% of the company’s stock.

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.