Costco Wholesale (NASDAQ:COST) Stock Price Up 1.3% – Should You Buy?

Shares of Costco Wholesale Corporation (NASDAQ:COST) rose 1.3% during trading on Thursday . The stock traded as high as $962.58 and last traded at $961.85. 1,310,670 shares were traded during mid-day trading, a decline of 41% from the average daily volume of 2,210,705 shares. The stock had previously closed at $949.58.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco’s low-price strategy—including competitively priced gasoline—continues to attract members and support customer loyalty. Its membership model and Kirkland Signature products remain key differentiators. Why Costco Keeps Gas So Cheap
• Positive Sentiment: Analysts at Zacks identified Costco as one of several retailers positioned for a potential earnings beat, citing resilient consumer demand, value-focused spending and digital growth. Target & 3 Retail Stocks Poised for an Earnings Beat This Season
• Positive Sentiment: Costco plans to open seven additional locations in 2026, offering a potential source of warehouse, membership and sales growth over time. Seven New Costco Locations Are Coming in 2026
• Positive Sentiment: The return of Kirkland Signature chocolate chips after a two-year absence may reinforce customer engagement and confidence in Costco’s private-label offering, although the direct financial impact is likely modest. Costco Brings Back Kirkland Chocolate Chips
• Neutral Sentiment: Wall Street analysts remain moderately optimistic, but Costco has lagged the broader market over the past year. The shares trade at a high earnings multiple, making sustained growth important to justify the valuation. Wall Street Analysts’ Outlook for Costco

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Roth Capital upped their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a report on Friday, May 29th. Weiss Ratings cut shares of Costco Wholesale from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, June 23rd. Mizuho set a $1,100.00 price objective on shares of Costco Wholesale in a research report on Monday, June 1st. UBS Group upped their target price on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a “buy” rating in a research note on Wednesday, May 20th. Finally, DA Davidson restated a “neutral” rating and set a $1,000.00 target price on shares of Costco Wholesale in a research note on Thursday, June 4th. Twenty-two analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,059.53.

Costco Wholesale Stock Performance

The firm has a market capitalization of $426.56 billion, a price-to-earnings ratio of 48.38, a PEG ratio of 4.49 and a beta of 0.87. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The stock’s 50-day moving average is $950.20 and its 200-day moving average is $981.59.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). The company had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same quarter in the prior year, the business earned $4.28 EPS. On average, analysts predict that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were paid 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 dividend 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 firm’s stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the sale, the director owned 4,779 shares of the company’s stock, valued at $4,575,653.55. This trade represents a 15.62% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Costco Wholesale

Several large investors have recently bought and sold shares of the company. Cibc World Market Inc. acquired a new stake in shares of Costco Wholesale during the second quarter valued at about $275,342,000. Osbon Capital Management LLC acquired a new position in shares of Costco Wholesale in the second quarter valued at approximately $442,000. OMERS ADMINISTRATION Corp bought a new position in Costco Wholesale in the 2nd quarter valued at approximately $99,145,000. Osmosis Investment Management UK Ltd bought a new position in Costco Wholesale in the 2nd quarter valued at approximately $9,623,000. Finally, Sanctuary Advisors LLC acquired a new stake in Costco Wholesale during the 2nd quarter worth approximately $102,915,000. 68.48% of the stock is currently owned by institutional investors.

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.