Traders Purchase Large Volume of Costco Wholesale Put Options (NASDAQ:COST)

Costco Wholesale Corporation (NASDAQ:COST) was the target of some unusual options trading activity on Thursday. Investors acquired 87,907 put options on the company. This is an increase of approximately 93% compared to the average daily volume of 45,520 put options.

Costco Wholesale Stock Performance

COST stock opened at $855.62 on Friday. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.04 and a quick ratio of 0.53. Costco Wholesale has a 1 year low of $844.06 and a 1 year high of $1,078.23. The company has a market cap of $379.78 billion, a P/E ratio of 45.83, a price-to-earnings-growth ratio of 5.14 and a beta of 1.00. The stock’s fifty day moving average price is $909.89 and its 200-day moving average price is $945.21.

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

Costco Wholesale Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, November 14th. Investors of record on Friday, October 31st were issued a $1.30 dividend. The ex-dividend date of this dividend was Friday, October 31st. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is presently 27.85%.

Wall Street Analyst Weigh In

COST has been the subject of several recent analyst reports. Wells Fargo & Company lowered their price target on Costco Wholesale from $1,000.00 to $900.00 and set an “equal weight” rating for the company in a research report on Friday. Morgan Stanley reduced their price target on shares of Costco Wholesale from $1,225.00 to $1,130.00 and set an “overweight” rating for the company in a research report on Friday, September 26th. Daiwa Capital Markets cut their target price on Costco Wholesale from $947.00 to $917.00 and set a “neutral” rating on the stock in a research note on Tuesday. HSBC reduced their target price on Costco Wholesale from $1,060.00 to $1,045.00 and set a “hold” rating for the company in a report on Friday, December 12th. Finally, Cowen restated a “buy” rating on shares of Costco Wholesale in a research note on Friday, December 12th. Eighteen equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Costco Wholesale currently has an average rating of “Moderate Buy” and an average price target of $987.58.

Insider Buying and Selling at Costco Wholesale

In related news, EVP William Richard Wilcox sold 2,400 shares of the firm’s stock in a transaction that occurred on Friday, November 7th. The stock was sold at an average price of $930.13, for a total transaction of $2,232,312.00. Following the completion of the transaction, the executive vice president owned 2,000 shares of the company’s stock, valued at $1,860,260. This trade represents a 54.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Russell D. Miller sold 3,381 shares of the business’s stock in a transaction on Monday, September 29th. The stock was sold at an average price of $915.00, for a total value of $3,093,615.00. Following the completion of the sale, the executive vice president directly owned 9,740 shares in the company, valued at $8,912,100. This trade represents a 25.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 9,720 shares of company stock worth $9,010,257 over the last three months. Company insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Bulwark Capital Corp bought a new stake in Costco Wholesale during the second quarter valued at about $25,000. Soundwatch Capital LLC grew its stake in shares of Costco Wholesale by 635.7% during the 2nd quarter. Soundwatch Capital LLC now owns 2,553 shares of the retailer’s stock valued at $25,000 after acquiring an additional 2,206 shares during the period. LFA Lugano Financial Advisors SA bought a new position in shares of Costco Wholesale during the 2nd quarter valued at approximately $31,000. Hurley Capital LLC increased its holdings in Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock worth $31,000 after acquiring an additional 18 shares in the last quarter. Finally, Abich Financial Wealth Management LLC bought a new stake in Costco Wholesale during the 3rd quarter worth approximately $34,000. 68.48% of the stock is currently owned by institutional investors.

Costco Wholesale News Summary

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

• Positive Sentiment: Memberships remain a strong, recurring revenue engine: renewal rates are still near historical highs despite more digital sign-ups, supporting predictability of cash flow and the membership model. Costco Renewal Rates Stay Near Historical Highs Despite Digital Shift
• Positive Sentiment: Recent quarterly results beat expectations, which validates sales momentum and pricing strategy even as growth may moderate — a bullish fundamental anchor for long-term investors. Costco Beat Earnings Expectations in Q1. Here’s Why It Could Still Struggle in 2026.
• Positive Sentiment: Expansion continues: Costco has secured land and signed deals for new locations (example: a recent land purchase in Calgary), supporting long-term store growth and membership acquisition. Anthem and Rencor Sign Costco to Springbank’s Bingham Crossing Centre
• Positive Sentiment: Positive analyst/commentary pieces reiterate Costco as a long-term holding, reinforcing investor confidence in the company’s durable business model despite recent pullbacks. 3 Soaring Stocks to Hold for the Next 20 Years
• Neutral Sentiment: Macroeconomic / assortment effects: Tariffs are prompting merchandising adjustments to keep prices low for shoppers — this can compress margins or shift SKU mix, but management appears to be managing assortment proactively. How Tariffs Are Changing Up Costco’s Shelves
• Neutral Sentiment: International revenue trends deserve close attention — overseas growth dynamics and currency mix can meaningfully affect Wall Street’s forecasts and long‑term targets. Don’t Overlook Costco (COST) International Revenue Trends While Assessing the Stock
• Neutral Sentiment: Guggenheim reiterated a Neutral rating amid softening metrics — an analyst stance that typically limits upside until metrics stabilize. Guggenheim reiterates Neutral rating on Costco stock amid softening metrics
• Negative Sentiment: Unusual bearish options activity: a very large uptick in put purchases suggests some traders are positioning for further near-term downside or insurance against volatility.
• Negative Sentiment: Valuation and structural cautions: analysis flags Costco’s AI‑grade multiple and other valuation metrics as warning signs for investors, which can pressure sentiment if growth slows. Why Costco’s (COST) AI-Grade Multiple is a Warning Signal for Investors
• Negative Sentiment: Analyst downgrade impact: a recent downgrade pushed the stock to a one‑year low, amplifying near‑term selling pressure and weighing on sentiment. Costco Wholesale (NASDAQ:COST) Hits New 1-Year Low After Analyst Downgrade

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.