Costco Wholesale (NASDAQ:COST) Trading 1.3% Higher – Should You Buy?

Costco Wholesale Corporation (NASDAQ:COST) shot up 1.3% 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.

Key Costco Wholesale News

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

Wall Street Analyst Weigh In

Several research firms recently issued reports on COST. Citigroup began coverage on Costco Wholesale in a report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 target price on the stock. Bank of America boosted their price target on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Mizuho set a $1,100.00 price objective on Costco Wholesale in a research note on Monday, June 1st. Weiss Ratings downgraded Costco Wholesale from a “buy (b)” rating to a “buy (b-)” rating in a report on Tuesday, June 23rd. Finally, Royal Bank Of Canada started coverage on shares of Costco Wholesale in a research note on Monday, July 13th. They issued a “sector perform” rating and a $1,000.00 target price for the company. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $1,059.53.

Costco Wholesale Stock Up 1.3%

The stock has a market cap of $426.56 billion, a P/E ratio of 48.38, a price-to-earnings-growth ratio of 4.49 and a beta of 0.87. The firm has a 50 day simple moving average of $950.20 and a 200-day simple moving average of $981.59. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17.

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

Costco Wholesale Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale’s payout ratio is 29.58%.

Insider Activity at Costco Wholesale

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the company’s stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the transaction, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its stake in Costco Wholesale by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer’s stock worth $37,615,889,000 after acquiring an additional 165,349 shares during the period. Geode Capital Management LLC lifted its position in shares of Costco Wholesale by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer’s stock valued at $8,919,573,000 after acquiring an additional 26,690 shares during the period. Morgan Stanley lifted its position in shares of Costco Wholesale by 1.1% during the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer’s stock valued at $8,212,433,000 after acquiring an additional 107,775 shares during the period. Bank of America Corp DE grew its holdings in shares of Costco Wholesale by 11.5% during the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock worth $7,488,203,000 after purchasing an additional 773,651 shares in the last quarter. Finally, Diamant Asset Management Inc. grew its holdings in shares of Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after purchasing an additional 6,720,130 shares in the last quarter. 68.48% of the stock is 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.