Costco Wholesale (NASDAQ:COST) Stock Price Down 2.5% – Here’s What Happened

Posted by Stanley Muller on Aug 22nd, 2026

Shares of Costco Wholesale Corporation (NASDAQ:COST – Get Free Report) were down 2.5% during trading on Thursday . The stock traded as low as $925.77 and last traded at $933.51. Approximately 2,457,107 shares changed hands during mid-day trading, an increase of 12% from the average session volume of 2,193,816 shares. The stock had previously closed at $956.99.

Costco Wholesale News Summary

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

Positive Sentiment: Medicare expansion creates a new growth opportunity. Costco is partnering with SCAN Group to offer Costco-branded Medicare Advantage and supplemental plans in select states. The initiative targets Costco’s large senior-member base and gives the company exposure to the approximately $600 billion Medicare market without requiring it to become a traditional insurer. Costco to Offer Medicare Plans for Older Adults
Positive Sentiment: Costco raised its dividend by 13.1%. The increase reinforces the company’s strong cash-generation profile and may improve its appeal to income-oriented investors, although the stock’s high valuation limits its current dividend yield. Costco Just Upped Its Dividend
Positive Sentiment: Additional monetization opportunities could support long-term growth. Analysts and commentators point to Costco’s retail-media business, AI-powered search capabilities and pharmacy operations as emerging growth engines alongside membership renewals, warehouse expansion and Kirkland Signature products. Costco Is Quietly Building Its Next Big Growth Engine
Neutral Sentiment: Costco’s relative resilience compared with Walmart highlights its value proposition. Walmart reported weaker U.S. traffic and comparable-sales growth, while Costco was less affected, suggesting its membership model and perceived value may be helping it navigate consumer affordability pressures. Walmart Drops on Slow Same-Store Sales Growth
Neutral Sentiment: A potential stock split is speculative. Costco shares have appreciated substantially since the prior 2-for-1 split 26 years ago. A future split could improve accessibility and trading liquidity, but it would not change the company’s underlying value or fundamentals. Costco Stock Split Analysis
Negative Sentiment: Valuation and modest earnings pressure remain risks. Costco trades at a lofty earnings multiple, while its latest quarterly EPS narrowly missed estimates despite revenue exceeding expectations. That premium leaves less room for disappointment if membership growth, margins or consumer spending weaken.
Negative Sentiment: The Medicare initiative will require execution. Entering a regulated, competitive insurance market could diversify revenue, but the pilot’s limited geographic rollout and potential healthcare-related complexity mean meaningful financial benefits may take time to develop. Costco Enters the Medicare Insurance Market

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. DA Davidson reaffirmed a “neutral” rating and set a $1,000.00 price objective on shares of Costco Wholesale in a report on Thursday, June 4th. Citigroup initiated coverage on Costco Wholesale in a report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 price objective for the company. Truist Financial increased their price target on Costco Wholesale from $977.00 to $1,011.00 and gave the company a “hold” rating in a research note on Friday, May 29th. The Goldman Sachs Group upped their price objective on Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a “buy” rating in a report on Friday, May 29th. Finally, Oppenheimer increased their target price on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an “outperform” rating in a research note on Tuesday, May 19th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $1,059.53.

Check Out Our Latest Stock Analysis on COST

Costco Wholesale Price Performance

The company has a market cap of $420.30 billion, a P/E ratio of 47.67, a PEG ratio of 4.44 and a beta of 0.87. The company has a fifty day moving average price of $947.14 and a two-hundred day moving average price of $980.95. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07.

Costco Wholesale (NASDAQ:COST – Get Free Report) last posted its quarterly earnings results 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). The firm had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same period last year, the company posted $4.28 earnings per share. On average, sell-side analysts anticipate that Costco Wholesale Corporation will post 20.42 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

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

Insider Buying and Selling at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of the company’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 sale, the director owned 4,779 shares of the company’s stock, valued at $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of Costco Wholesale in the fourth quarter worth $27,000. Lifetime Wealth Management P.C. bought a new position in shares of Costco Wholesale in the 4th quarter worth about $28,000. C M Bidwell & Associates Ltd. bought a new stake in Costco Wholesale in the second quarter worth approximately $28,000. Mcguire Capital Advisors Inc. acquired a new position in shares of Costco Wholesale during the 4th quarter valued at $28,000. Finally, Burk Holdings LLC acquired a new position in shares of Costco Wholesale during the second quarter valued at about $30,000. 68.48% of the stock is currently owned by institutional investors and hedge funds.

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.