Costco Wholesale (NASDAQ:COST) Trading 1.2% Higher on Analyst Upgrade
by Mitch Edgeman · The Markets DailyShares of Costco Wholesale Corporation (NASDAQ:COST – Get Free Report) shot up 1.2% during mid-day trading on Friday after Oppenheimer raised their price target on the stock from $1,050.00 to $1,100.00. Oppenheimer currently has an outperform rating on the stock. Costco Wholesale traded as high as $1,001.37 and last traded at $1,001.16. 2,219,302 shares traded hands during trading, a decline of 18% from the average session volume of 2,720,281 shares. The stock had previously closed at $989.29.
Several other equities research analysts have also commented on COST. DA Davidson restated a “neutral” rating and set a $1,000.00 price target on shares of Costco Wholesale in a research note on Thursday, December 4th. Wells Fargo & Company increased their target price on shares of Costco Wholesale from $900.00 to $950.00 and gave the stock an “equal weight” rating in a research report on Thursday. Gordon Haskett raised their price target on shares of Costco Wholesale from $1,000.00 to $1,100.00 in a report on Tuesday. Robert W. Baird set a $1,100.00 price target on shares of Costco Wholesale in a research report on Thursday. Finally, UBS Group reissued a “buy” rating on shares of Costco Wholesale in a research report on Friday, December 12th. Twenty-one investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Costco Wholesale presently has a consensus rating of “Moderate Buy” and an average price target of $1,006.19.
View Our Latest Stock Report on Costco Wholesale
Insider Buying and Selling
In other Costco Wholesale news, EVP James C. Klauer sold 1,500 shares of the business’s stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $939.00, for a total value of $1,408,500.00. Following the sale, the executive vice president directly owned 44,837 shares in the company, valued at approximately $42,101,943. The trade was a 3.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Russell D. Miller sold 1,500 shares of the stock in a transaction on Friday, January 9th. The shares were sold at an average price of $916.32, for a total value of $1,374,480.00. Following the completion of the transaction, the executive vice president owned 8,240 shares of the company’s stock, valued at $7,550,476.80. This trade represents a 15.40% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 6,915 shares of company stock worth $6,317,097. Company insiders own 0.10% of the company’s stock.
Costco Wholesale News Roundup
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Company-reported January sales: Costco posted $21.33 billion in net sales for the four weeks ended Feb. 1, up 9.3% year‑over‑year, with comps and digital sales notably strong — a clear operational catalyst supporting the rally. Costco Wholesale Corporation Reports January Sales Results
- Positive Sentiment: Big-name analyst upgrades: Oppenheimer raised its price target to $1,100 (Outperform), signaling ~10% upside vs. recent levels—this institutional endorsement likely helped lift sentiment. Oppenheimer adjusts PT on Costco Wholesale to $1,100
- Positive Sentiment: Broad analyst optimism and momentum: Multiple outlets note a trend toward Strong Buy/Outperform ratings (TipRanks, Mizuho raising target to $1,065), reinforcing the view that membership rebound and Instacart expansion support growth. Costco Stock Forecast: Trending StrongBuy Among Analysts
- Neutral Sentiment: Mixed analyst positioning: Wells Fargo raised its price target to $950 but kept an Equal Weight rating (PT below recent price), and DA Davidson reaffirmed Neutral at $1,000 — signals that some firms see limited near‑term upside. Analyst notes (Benzinga)
- Neutral Sentiment: Sector flows: Bank of America flagged record inflows into consumer staples amid tech weakness, which has supported Costco shares as a defensive trade — a macro tailwind that could be transient. Walmart, Costco, XLP Surge As BofA Flags Record Inflows
- Negative Sentiment: Product/labeling headwinds: Costco issued a recall for pastries sold in California over undeclared nuts, and a suit challenges rotisserie-chicken “no preservatives” labeling — potential reputational/legal risks. Costco recalls popular baked good sold in California
- Negative Sentiment: Valuation caution: Commentary from Barron’s and valuation pieces highlight that staples (including Costco) look “frothy” after multi‑year gains and Costco’s high P/E, which could temper upside if sector rotation reverses. Staples Stocks Are Known for Safety. Now They Look Way Too Frothy.
Hedge Funds Weigh In On Costco Wholesale
Hedge funds have recently made changes to their positions in the business. Kingdom Financial Group LLC. acquired a new position in shares of Costco Wholesale in the 4th quarter valued at $57,000. Diamant Asset Management Inc. grew its stake in Costco Wholesale by 6.4% in the fourth quarter. Diamant Asset Management Inc. now owns 6,769 shares of the retailer’s stock valued at $5,837,000 after acquiring an additional 406 shares during the period. Meiji Yasuda Asset Management Co Ltd. increased its holdings in shares of Costco Wholesale by 63.9% in the fourth quarter. Meiji Yasuda Asset Management Co Ltd. now owns 7,689 shares of the retailer’s stock worth $6,631,000 after acquiring an additional 2,998 shares in the last quarter. Van Hulzen Asset Management LLC raised its position in shares of Costco Wholesale by 2.2% during the fourth quarter. Van Hulzen Asset Management LLC now owns 13,987 shares of the retailer’s stock worth $12,061,000 after purchasing an additional 302 shares during the period. Finally, Signature Estate & Investment Advisors LLC lifted its holdings in shares of Costco Wholesale by 6.7% during the 4th quarter. Signature Estate & Investment Advisors LLC now owns 3,404 shares of the retailer’s stock valued at $2,936,000 after purchasing an additional 215 shares in the last quarter. Institutional investors and hedge funds own 68.48% of the company’s stock.
Costco Wholesale Price Performance
The company has a 50-day moving average of $912.84 and a 200-day moving average of $930.22. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.53 and a current ratio of 1.04. The firm has a market capitalization of $444.38 billion, a price-to-earnings ratio of 53.62, a price-to-earnings-growth ratio of 5.85 and a beta of 1.01.
Costco Wholesale (NASDAQ:COST – Get Free Report) last announced its quarterly earnings results on Thursday, December 11th. The retailer reported $4.34 EPS for the quarter, beating analysts’ consensus estimates of $4.27 by $0.07. Costco Wholesale had a net margin of 2.96% and a return on equity of 29.35%. The firm had revenue of $67.31 billion during the quarter, compared to analysts’ expectations of $67.03 billion. During the same quarter last year, the company posted $4.04 earnings per share. The company’s revenue for the quarter was up 8.3% compared to the same quarter last year. As a group, research analysts anticipate that Costco Wholesale Corporation will post 18.03 EPS for the current fiscal year.
Costco Wholesale Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 13th. Investors of record on Friday, January 30th will be paid a $1.30 dividend. The ex-dividend date of this dividend is Friday, January 30th. This represents a $5.20 annualized dividend and a yield of 0.5%. Costco Wholesale’s dividend payout ratio (DPR) is 27.85%.
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.