Costco Wholesale (NASDAQ:COST) Shares Climb 1.6% – Still a Buy?

Shares of Costco Wholesale Corporation (NASDAQ:COST) shot up 1.6% during mid-day trading on Friday. The stock traded as high as $1,021.31 and last traded at $1,012.28. Approximately 3,343,753 shares traded hands during trading, an increase of 52% from the average session volume of 2,195,486 shares. The stock had previously closed at $996.08.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Store expansion supports long-term growth. Costco plans to open 13 locations by the end of 2026, potentially expanding its membership base and sales footprint. Costco opening 13 locations by end of 2026
• Positive Sentiment: Membership acquisition remains a focus. A promotional offer providing new members with a $45 gift card could help drive sign-ups ahead of the holiday shopping season, supporting recurring membership-fee revenue. Costco membership Black Friday deal
• Positive Sentiment: Analysts expect continued earnings momentum. Costco’s upcoming fiscal first-quarter 2027 report is expected to show double-digit year-over-year EPS growth. Its latest quarter also beat consensus estimates on both earnings and revenue. What to expect from Costco Wholesale’s next quarterly earnings report
• Positive Sentiment: Customer loyalty and digital engagement remain strengths. Coverage highlights near-record renewal rates, busy warehouses, a younger shopper base and growing use of Costco’s digital channels. These factors reinforce the company’s competitive advantages and long-term sales potential. The New Costco Shopper Is Under 40
• Neutral Sentiment: Healthcare partnerships could deepen member engagement. Integrations with NationsBenefits and SCAN Health Plan are expanding Costco’s role in Medicare-related spending across more than 600 U.S. warehouses, though the financial contribution is not yet clear. Medicare push and Costco investors
• Negative Sentiment: Valuation leaves little room for disappointment. Costco trades at roughly 49 times earnings, making execution and upcoming results especially important. Analysts remain positive, but the stock’s premium valuation could amplify downside if growth slows. Costco stock’s long-term competitive advantages

Analyst Upgrades and Downgrades

Several analysts have weighed in on COST shares. Royal Bank Of Canada reissued a “sector perform” rating and issued a $1,000.00 target price on shares of Costco Wholesale in a report on Friday, October 9th. HSBC upgraded Costco Wholesale to a “buy” rating in a research report on Friday, September 25th. Raymond James Financial cut their price target on 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. Roth Capital reiterated a “sell” rating and issued a $781.00 price objective on shares of Costco Wholesale in a research report on Friday, September 25th. Finally, CICC Research initiated coverage on shares of Costco Wholesale in a research note on Wednesday, October 21st. They issued an “outperform” rating and a $1,050.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Costco Wholesale presently has a consensus rating of “Moderate Buy” and an average target price of $1,086.19.

Costco Wholesale Price Performance

The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. The stock has a market capitalization of $448.57 billion, a price-to-earnings ratio of 48.76, a P/E/G ratio of 4.33 and a beta of 0.88. The company has a 50-day moving average of $943.31 and a 200-day moving average of $970.25.

Costco Wholesale (NASDAQ:COST) last posted its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.54 by $0.21. The firm had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. Costco Wholesale’s revenue was up 11.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $5.87 EPS. As a group, equities research analysts expect that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be issued 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 of this dividend is Friday, October 30th. Costco Wholesale’s payout ratio is 28.32%.

Insider Buying and Selling at Costco Wholesale

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in COST. Sarasin & Partners LLP lifted its stake in shares of Costco Wholesale by 6.9% in the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock worth $200,372,000 after acquiring an additional 13,795 shares during the period. Silvant Capital Management LLC bought a new stake in shares of Costco Wholesale during the 2nd quarter worth $16,013,000. Nissay Asset Management Corp Japan boosted its position in shares of Costco Wholesale by 4.1% in the 2nd quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer’s stock valued at $148,193,000 after purchasing an additional 6,200 shares during the period. Hyperion Asset Management Ltd boosted its holdings in shares of Costco Wholesale by 9.0% in the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer’s stock worth $64,325,000 after buying an additional 5,656 shares during the period. Finally, Concurrent Investment Advisors LLC grew its position in Costco Wholesale by 15.0% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 22,766 shares of the retailer’s stock worth $21,297,000 after purchasing an additional 2,974 shares in the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

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.