Costco Wholesale Corporation (NASDAQ:COST) Receives Average Rating of “Moderate Buy” from Brokerages

Shares of Costco Wholesale Corporation (NASDAQ:COST) have earned a consensus recommendation of “Moderate Buy” from the thirty-four research firms that are presently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, eleven have given a hold recommendation and twenty-two have issued a buy recommendation on the company. The average 12-month target price among analysts that have covered the stock in the last year is $1,061.4483.

A number of research firms have issued reports on COST. HC Wainwright reiterated a “buy” rating on shares of Costco Wholesale in a research note on Monday, June 1st. BTIG Research restated a “buy” rating and issued a $1,125.00 target price on shares of Costco Wholesale in a report on Friday, May 29th. Raymond James Financial lifted their target price on Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an “outperform” rating in a research report on Friday, March 6th. Citigroup began coverage on Costco Wholesale in a report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 price target for the company. Finally, Bank of America increased their price target on Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a “buy” rating in a research report on Friday, May 29th.

Insider Activity at Costco Wholesale

In related news, Director Kenneth D. 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 transaction, the director directly owned 4,779 shares of the company’s stock, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Costco Wholesale

A number of institutional investors have recently added to or reduced their stakes in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of Costco Wholesale in the 4th quarter worth approximately $27,000. Lifetime Wealth Management P.C. purchased a new stake in shares of Costco Wholesale during the fourth quarter valued at approximately $28,000. Mcguire Capital Advisors Inc. bought a new stake in Costco Wholesale during the fourth quarter worth $28,000. Entrust Financial LLC purchased a new position in Costco Wholesale in the fourth quarter worth $31,000. Finally, Joseph Group Capital Management purchased a new position in Costco Wholesale in the fourth quarter worth $33,000. 68.48% of the stock is owned by institutional investors.

Costco Wholesale Stock Up 2.9%

Costco Wholesale stock opened at $951.67 on Friday. The firm has a market capitalization of $422.05 billion, a price-to-earnings ratio of 47.87, a price-to-earnings-growth ratio of 4.48 and a beta of 0.88. The firm’s fifty day moving average price is $991.42 and its two-hundred day moving average price is $972.72. Costco Wholesale has a 1-year low of $844.06 and a 1-year high of $1,096.50. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST) last posted its earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The business had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the previous year, the firm earned $4.28 earnings per share. On average, equities research analysts predict that Costco Wholesale will post 20.38 earnings per share 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 paid a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Friday, May 1st. This is a positive change from Costco Wholesale’s previous quarterly dividend of $1.30. Costco Wholesale’s dividend payout ratio (DPR) is currently 29.58%.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco is still expanding its warehouse footprint, with new store plans reported in Florida, South Carolina and Southern California, reinforcing the company’s long-term growth story. Costco plans to build new warehouse in southern Hillsborough County
• Positive Sentiment: Analysts remain upbeat on Costco’s earnings power, with Erste Group raising FY2027 EPS estimates above consensus, signaling confidence in the retailer’s ability to keep growing profits.
• Positive Sentiment: Several articles continue to frame Costco as a strong long-term compounder, supported by its membership model, cash generation, and resilient value proposition for consumers. Costco (COST) Stock Looks Strong On Returns But Expensive On Earnings
• Neutral Sentiment: Discussion around a possible 2026 stock split is generating attention, but it does not change Costco’s fundamentals and management has historically been cautious about splitting the stock. With Costco Trading Under $1,000, Is a Stock Split Still on the Table for 2026?
• Neutral Sentiment: One comparison piece versus Amazon and a holiday-closure story versus Sam’s Club are more about consumer habits and retail strategy than a direct change in Costco’s outlook. Growth Stock Showdown: Is Costco or Amazon the Better Buy Right Now?
• Negative Sentiment: Some commentary warns Costco may be expensive on earnings and could face execution risks if fuel-related traffic tailwinds weaken, which could limit upside if growth slows. Costco’s Secret Growth Engine May Be Running Out of Gas

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.