Costco Wholesale (NASDAQ:COST) Stock Price Up 1.9% – Still a Buy?

Costco Wholesale Corporation (NASDAQ:COST)’s share price was up 1.9% during mid-day trading on Wednesday . The stock traded as high as $989.64 and last traded at $982.86. Approximately 4,020,331 shares were traded during trading, an increase of 30% from the average daily volume of 3,103,353 shares. The stock had previously closed at $964.26.

Costco Wholesale News Roundup

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

• Positive Sentiment: Warehouse expansion and faster new-store ramp-ups support long-term sales and membership growth, giving a clear growth runway that investors reward. Read More.
• Positive Sentiment: Costco is adopting a tech upgrade used by competitors to improve the member experience — a move that can boost traffic, basket size and retention if rollout is smooth. Read More.
• Positive Sentiment: Recent performance shows Costco outpacing the market, reflecting resilient December sales and membership trends that underwrite recurring revenue. Read More.
• Positive Sentiment: Card and membership perks were improved (higher gas rewards), which can increase loyalty and in-warehouse spending among cardholders. Read More.
• Neutral Sentiment: Analysis questions whether Costco’s premium P/E is justified given steady but moderate growth — useful context for entry/position sizing decisions. Read More.
• Neutral Sentiment: Investor guides and commentary (e.g., what Costco needs to prove in 2026) emphasize strong fundamentals but note high expectations; these pieces tend to temper near-term upside forecasts. Read More.
• Negative Sentiment: An insider sale was disclosed (Director Susan Decker sold 458 shares), a small but visible transaction that some investors interpret as a mild negative signal on timing/valuation. Read More.
• Negative Sentiment: Increased expansion by large grocery rivals raises the risk of localized share pressure and margin competition over time. Read More.

Analysts Set New Price Targets

COST has been the subject of several research reports. TD Cowen restated a “buy” rating on shares of Costco Wholesale in a research report on Friday, December 12th. Daiwa Capital Markets dropped their target price on shares of Costco Wholesale from $947.00 to $917.00 and set a “neutral” rating on the stock in a research note on Tuesday, December 16th. Weiss Ratings reissued a “hold (c+)” rating on shares of Costco Wholesale in a research report on Monday, December 29th. Citigroup lowered their price target on shares of Costco Wholesale from $1,065.00 to $990.00 and set a “neutral” rating on the stock in a report on Monday, September 29th. Finally, Gordon Haskett dropped their price objective on Costco Wholesale from $1,150.00 to $1,100.00 and set a “buy” rating on the stock in a research note on Monday, December 1st. Twenty-one research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Costco Wholesale has an average rating of “Moderate Buy” and a consensus price target of $996.00.

Costco Wholesale Stock Performance

The company has a quick ratio of 0.53, a current ratio of 1.04 and a debt-to-equity ratio of 0.19. The company has a market capitalization of $436.26 billion, a PE ratio of 52.64, a PEG ratio of 5.77 and a beta of 1.02. The company has a 50-day moving average price of $896.67 and a two-hundred day moving average price of $929.57.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings data on Thursday, December 11th. The retailer reported $4.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.27 by $0.07. The business had revenue of $67.31 billion for the quarter, compared to analysts’ expectations of $67.03 billion. Costco Wholesale had a return on equity of 29.35% and a net margin of 2.96%.The firm’s quarterly revenue was up 8.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $4.04 EPS. Analysts predict that Costco Wholesale Corporation will post 18.03 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

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

Insider Buying and Selling

In other Costco Wholesale news, EVP William Richard Wilcox sold 2,400 shares of the stock in a transaction that occurred on Friday, November 7th. The shares were sold at an average price of $930.13, for a total value of $2,232,312.00. Following the sale, the executive vice president directly owned 2,000 shares in the company, valued at $1,860,260. This represents a 54.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Javier Polit sold 2,049 shares of the business’s stock in a transaction on Monday, December 29th. The shares were sold at an average price of $867.21, for a total transaction of $1,776,913.29. Following the transaction, the executive vice president owned 10,748 shares of the company’s stock, valued at $9,320,773.08. This trade represents a 16.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 12,404 shares of company stock valued at $11,395,418 in the last three months. Insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

A number of institutional investors and hedge funds have recently made changes to their positions in COST. Norges Bank purchased a new stake in shares of Costco Wholesale in the 2nd quarter valued at about $5,692,035,000. Laurel Wealth Advisors LLC grew its holdings in shares of Costco Wholesale by 96,316.6% during the second quarter. Laurel Wealth Advisors LLC now owns 1,378,758 shares of the retailer’s stock worth $1,364,888,000 after purchasing an additional 1,377,328 shares in the last quarter. Assenagon Asset Management S.A. increased its position in shares of Costco Wholesale by 1,586.8% in the fourth quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer’s stock worth $980,857,000 after purchasing an additional 1,070,005 shares during the last quarter. Amundi raised its stake in Costco Wholesale by 45.0% in the third quarter. Amundi now owns 3,176,606 shares of the retailer’s stock valued at $2,893,697,000 after purchasing an additional 986,182 shares in the last quarter. Finally, Vanguard Group Inc. raised its stake in Costco Wholesale by 1.7% in the second quarter. Vanguard Group Inc. now owns 43,356,271 shares of the retailer’s stock valued at $42,920,107,000 after purchasing an additional 711,560 shares in the last quarter. Hedge funds and other institutional investors own 68.48% of the company’s stock.

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.