Costco Wholesale (NASDAQ:COST) Shares Up 2.4% – Still a Buy?
by Mitch Edgeman · The Markets DailyCostco Wholesale Corporation (NASDAQ:COST – Get Free Report)’s share price was up 2.4% during trading on Friday . The stock traded as high as $1,014.19 and last traded at $1,010.79. Approximately 3,898,800 shares were traded during mid-day trading, an increase of 57% from the average daily volume of 2,486,146 shares. The stock had previously closed at $986.74.
Trending Headlines about Costco Wholesale
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Bank of America initiated coverage with a “Buy” and a $1,185 price target, signaling material upside from current levels and lending institutional momentum to the name.
- Positive Sentiment: Analysts highlighted Costco’s resilience in a K-shaped economy — pricing power, loyal executive members and margin durability — supporting the stock’s defensive growth narrative. What’s Going On With Costco Wholesale Stock Today?
- Positive Sentiment: Seeking Alpha published a long-term bullish piece framing Costco’s business model as attractive for buy-and-hold investors, reinforcing the stock’s appeal for portfolio allocation. Costco: A Strong Business Model For Long-Term Investors
- Positive Sentiment: Merchandising and pricing moves — Costco added more national brands and cut prices on select items — which can boost traffic and member perceived value, supporting same-store fundamentals. Costco adds more big brands and lowers prices
- Neutral Sentiment: Costco heads into Q2 with consensus expectations for revenue growth (~+8.6%) and EPS (~+12.7%), which supports the bull case but raises the bar — strong results could be priced in given recent analyst optimism. Should You Buy Costco Stock Ahead of Q2 Earnings Report?
- Neutral Sentiment: Costco is pursuing tariff refund lawsuits (post-Supreme Court rulings) while investing in digital tools and global expansion — potential upside from refunds but also short-term cash/legal uncertainty and capex. How Investors May Respond To Costco Wholesale (COST) Tariff Refund Lawsuits And Digital Expansion Investments
- Negative Sentiment: Operational hiccup: Costco notified Hawaii members of a Yakitori fried rice recall — a localized food-safety issue that could produce modest short-term negative PR and costs. Costco notifies Hawaii members of Yakitori fried rice recall
Wall Street Analyst Weigh In
Several research firms recently issued reports on COST. Roth Mkm reissued a “sell” rating on shares of Costco Wholesale in a research report on Wednesday, February 4th. Truist Financial cut their price objective on Costco Wholesale from $1,033.00 to $926.00 and set a “hold” rating on the stock in a report on Friday, December 12th. Mizuho lifted their target price on Costco Wholesale from $1,000.00 to $1,065.00 and gave the stock an “outperform” rating in a report on Tuesday, February 3rd. Weiss Ratings reiterated a “hold (c+)” rating on shares of Costco Wholesale in a research report on Monday, December 29th. Finally, Sanford C. Bernstein reissued an “outperform” rating and set a $1,155.00 price target on shares of Costco Wholesale in a research report on Monday, February 9th. Twenty-two analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Costco Wholesale currently has an average rating of “Moderate Buy” and an average target price of $1,014.39.
Check Out Our Latest Research Report on Costco Wholesale
Costco Wholesale Trading Up 2.4%
The company’s fifty day simple moving average is $945.05 and its 200-day simple moving average is $935.19. The firm has a market capitalization of $448.66 billion, a PE ratio of 54.14, a P/E/G ratio of 5.24 and a beta of 1.01. 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 (NASDAQ:COST – Get Free Report) last released 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. Costco Wholesale had a net margin of 2.96% and a return on equity of 29.35%. The company had revenue of $67.31 billion during the quarter, compared to the consensus estimate of $67.03 billion. During the same quarter in the prior year, the firm earned $4.04 EPS. Costco Wholesale’s quarterly revenue was up 8.3% on a year-over-year basis. As a group, sell-side analysts expect that Costco Wholesale Corporation will post 18.03 earnings per share for the current fiscal year.
Costco Wholesale Dividend Announcement
The company also recently announced a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, January 30th were paid a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date was Friday, January 30th. Costco Wholesale’s dividend payout ratio is presently 27.85%.
Insider Buying and Selling
In related news, EVP Javier Polit sold 558 shares of the stock in a transaction on Tuesday, December 30th. The shares were sold at an average price of $862.89, for a total transaction of $481,492.62. Following the completion of the sale, the executive vice president owned 10,190 shares in the company, valued at $8,792,849.10. This represents a 5.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Susan L. Decker sold 458 shares of the firm’s stock in a transaction on Friday, January 16th. The stock was sold at an average price of $955.00, for a total transaction of $437,390.00. Following the transaction, the director directly owned 8,532 shares in the company, valued at $8,148,060. The trade was a 5.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 6,915 shares of company stock valued at $6,317,097 in the last 90 days. Company insiders own 0.10% of the company’s stock.
Institutional Trading of Costco Wholesale
A number of hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC boosted its stake in shares of Costco Wholesale by 12.3% in the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer’s stock valued at $18,165,000 after buying an additional 2,172 shares in the last quarter. Revolve Wealth Partners LLC grew its position in shares of Costco Wholesale by 13.1% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer’s stock valued at $1,029,000 after purchasing an additional 130 shares during the last quarter. Sivia Capital Partners LLC grew its holdings in Costco Wholesale by 4.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer’s stock valued at $3,814,000 after buying an additional 165 shares during the last quarter. Pinnacle Wealth Planning Services Inc. increased its position in Costco Wholesale by 1.1% during the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer’s stock worth $2,089,000 after purchasing an additional 23 shares in the last quarter. Finally, United Bank raised its position in shares of Costco Wholesale by 4.2% in the second quarter. United Bank now owns 5,846 shares of the retailer’s stock valued at $5,787,000 after buying an additional 235 shares during the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.
About Costco Wholesale
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.