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

Shares of Costco Wholesale Corporation (NASDAQ:COST) have received a consensus recommendation of “Moderate Buy” from the thirty-four research firms that are covering the company, Marketbeat reports. One analyst has rated the stock with a sell rating, twelve have given a hold rating and twenty-one have assigned a buy rating to the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $1,006.1923.

A number of research firms recently commented on COST. Roth Mkm reiterated a “sell” rating on shares of Costco Wholesale in a research note on Wednesday. Daiwa Capital Markets reduced their price objective on shares of Costco Wholesale from $947.00 to $917.00 and set a “neutral” rating for the company in a research note on Tuesday, December 16th. Truist Financial reduced their price target on shares of Costco Wholesale from $1,033.00 to $926.00 and set a “hold” rating for the company in a research report on Friday, December 12th. BTIG Research began coverage on shares of Costco Wholesale in a research note on Tuesday, October 14th. They set a “buy” rating and a $1,115.00 target price on the stock. Finally, Deutsche Bank Aktiengesellschaft set a $1,044.00 price target on Costco Wholesale in a research report on Thursday, January 8th.

Insiders Place Their Bets

In other news, EVP James C. Klauer sold 1,500 shares of the firm’s stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $939.00, for a total transaction of $1,408,500.00. Following the transaction, the executive vice president owned 44,837 shares in the company, valued at approximately $42,101,943. This trade represents a 3.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Russell D. Miller sold 1,500 shares of the company’s stock in a transaction on Friday, January 9th. The stock was sold at an average price of $916.32, for a total transaction of $1,374,480.00. Following the completion of the sale, the executive vice president owned 8,240 shares of the company’s stock, valued at $7,550,476.80. This represents a 15.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 9,315 shares of company stock worth $8,549,409 in the last quarter. Corporate insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Thrivent Financial for Lutherans grew its holdings in shares of Costco Wholesale by 92.7% during the 4th quarter. Thrivent Financial for Lutherans now owns 98,640 shares of the retailer’s stock worth $85,108,000 after purchasing an additional 47,441 shares in the last quarter. AM Investment Strategies LLC increased its stake in Costco Wholesale by 1.1% in the fourth quarter. AM Investment Strategies LLC now owns 3,358 shares of the retailer’s stock valued at $2,896,000 after acquiring an additional 36 shares during the period. Meridian Financial Partners LLC raised its holdings in shares of Costco Wholesale by 26.3% in the 4th quarter. Meridian Financial Partners LLC now owns 529 shares of the retailer’s stock worth $456,000 after buying an additional 110 shares in the last quarter. Avantax Planning Partners Inc. raised its position in Costco Wholesale by 126.2% in the 4th quarter. Avantax Planning Partners Inc. now owns 10,692 shares of the retailer’s stock valued at $9,220,000 after purchasing an additional 5,965 shares during the last quarter. Finally, Conning Inc. boosted its stake in Costco Wholesale by 6.5% in the fourth quarter. Conning Inc. now owns 6,828 shares of the retailer’s stock worth $5,888,000 after purchasing an additional 415 shares in the last quarter. 68.48% of the stock is owned by institutional investors.

Costco Wholesale Trading Up 1.2%

Costco Wholesale stock traded up $11.29 during midday trading on Thursday, reaching $989.64. The stock had a trading volume of 520,633 shares, compared to its average volume of 2,657,653. Costco Wholesale has a twelve month low of $844.06 and a twelve month high of $1,078.23. The stock’s 50-day simple moving average is $911.22 and its 200 day simple moving average is $929.80. The stock has a market capitalization of $439.27 billion, a PE ratio of 53.03, a price-to-earnings-growth ratio of 5.85 and a beta of 1.01. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.53 and a current ratio of 1.04.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings results on Thursday, December 11th. The retailer reported $4.34 EPS for the quarter, topping the consensus estimate of $4.27 by $0.07. Costco Wholesale had a net margin of 2.96% and a return on equity of 29.35%. The business had revenue of $67.31 billion for 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 quarterly revenue was up 8.3% compared to the same quarter last year. Analysts expect that Costco Wholesale will post 18.03 EPS for the current year.

Costco Wholesale Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, February 13th. Shareholders of record on Friday, January 30th will be paid a $1.30 dividend. The ex-dividend date is Friday, January 30th. This represents a $5.20 dividend on an annualized basis and a yield of 0.5%. Costco Wholesale’s payout ratio is 27.85%.

Key Costco Wholesale News

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

• Positive Sentiment: January sales beat expectations — Costco reported January net sales of $21.33 billion, up 9.3% year-over-year with comps +7.1% and digital sales surging ~34%, a primary driver of today’s rally. GlobeNewswire: January Sales Results
• Positive Sentiment: Market coverage and analyst sentiment are bullish — Gordon Haskett raised its price target to $1,100 and other firms (Telsey Advisory reaffirmed Outperform; TipRanks shows consensus trending Strong Buy), supporting upside expectations. MarketScreener: Gordon Haskett TipRanks: Analyst Sentiment
• Positive Sentiment: Inflow into staples amid tech weakness is boosting defensive names — BofA data showing record flows into consumer staples has helped lift Costco alongside peers as investors rotate away from growth/tech. Benzinga: BofA Staples Inflows
• Positive Sentiment: Membership and recurring revenue strength — Analysts note membership fee growth (reported +14% in Q1 FY26) and high renewal rates, underpinning predictable cash flow and valuation support. Zacks: Membership Model
• Positive Sentiment: Media/market narratives reinforce momentum — articles highlighting Costco’s “comeback” and strong January sales have helped sentiment and flows into the stock after underperformance in 2025. 24/7 Wall St.: Comeback
• Neutral Sentiment: Analyst/press pieces weighing buy/hold options — several outlets are revisiting valuations and investor takeaways (e.g., Motley Fool/other coverage), offering mixed guidance for longer-term positioning. The Motley Fool: Buy/Sell/Hold
• Negative Sentiment: Valuation concerns — commentators note Costco’s rich P/E after recent gains and suggest staples may look frothy, which could cap upside if broader rotation reverses. Barron’s: Valuation Caution Yahoo Finance: Lofty P/E
• Negative Sentiment: Product recall and litigation — Costco issued a California pastry recall for undeclared nuts and faces a lawsuit over rotisserie chicken labeling; these are limited but could produce short-term headlines or costs. KRON4: Pastry Recall Meat & Poultry: Lawsuit

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.