Costco Wholesale (NASDAQ:COST) Shares Up 2.1% – Should You Buy?

Costco Wholesale Corporation (NASDAQ:COST) shares rose 2.1% on Thursday . The company traded as high as $1,009.21 and last traded at $998.86. Approximately 2,961,830 shares changed hands during trading, an increase of 11% from the average daily volume of 2,660,325 shares. The stock had previously closed at $978.14.

Key Costco Wholesale News

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

• Positive Sentiment: Analyst price-target upgrades: Bernstein raised its target (to ~$1,155) and Evercore ISI lifted its target to $1,050, keeping upbeat ratings that support upside expectations. Bernstein Boosts COST Target
• Positive Sentiment: Europe expansion: Costco is piloting e?commerce delivery in Europe, a meaningful new addressable market that could drive long?term top?line growth if scaled. Costco Tests European E Commerce Delivery
• Positive Sentiment: Membership & promotions: Ongoing member promotions (e.g., digital shop-card offers) and strong member perks sustain renewal rates and engagement. Get a $20 Digital Costco Shop Card
• Positive Sentiment: Momentum and growth narratives: Multiple Zacks pieces highlight Costco as a momentum/top?growth stock, supporting investor sentiment around durable comp and digital trends. Here’s Why Costco is a Strong Momentum Stock
• Neutral Sentiment: Short-interest data appears erroneous (reports show 0 shares / NaN changes and a 0.0 days-to-cover ratio); not meaningful as reported and unlikely to explain price moves.
• Neutral Sentiment: Corporate culture/dei: Fortune reports Costco maintained DEI programs while some peers cut back—this may support talent/brand but is not an immediate earnings driver. Costco defied Trump’s DEI directive
• Neutral Sentiment: Customer coverage pieces (both positive “in awe” stories and critiques of recent changes) reflect mixed consumer sentiment—useful for brand monitoring but limited near-term impact. 10 Costco Changes That Made Customers Angry
• Negative Sentiment: Product recall: A recall of mini beignets for undeclared hazelnuts affects operations and could create modest near?term costs or reputational noise. Costco recalls mini beignets
• Negative Sentiment: Tariff/legal risk: The U.S. Supreme Court is set to hear challenges to former?administration tariffs (Feb. 20); an adverse ruling or delayed refunds could hurt retailer margins or cash recoveries. President Trump’s Tariffs To Face Feb.20 Supreme Court Hearing

Analyst Upgrades and Downgrades

A number of research analysts recently commented on COST shares. Northcoast Research set a $1,100.00 price target on Costco Wholesale and gave the company a “buy” rating in a report on Wednesday, December 24th. Robert W. Baird set a $1,100.00 target price on shares of Costco Wholesale in a research note on Thursday, February 5th. Wells Fargo & Company lifted their target price on Costco Wholesale from $900.00 to $950.00 and gave the stock an “equal weight” rating in a research report on Thursday, February 5th. BMO Capital Markets reissued an “outperform” rating on shares of Costco Wholesale in a research report on Friday, December 12th. Finally, Truist Financial decreased their price objective on shares of Costco Wholesale from $1,033.00 to $926.00 and set a “hold” rating for the company in a report on Friday, December 12th. Twenty-two analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $1,009.00.

Costco Wholesale Price Performance

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 stock has a market capitalization of $452.07 billion, a price-to-earnings ratio of 54.55, a price-to-earnings-growth ratio of 5.27 and a beta of 1.01. The business’s 50 day simple moving average is $922.96 and its 200-day simple moving average is $932.52.

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 during the quarter, compared to analyst estimates of $67.03 billion. Costco Wholesale had a return on equity of 29.35% and a net margin of 2.96%.The business’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same period in the prior year, the company posted $4.04 EPS. Research analysts anticipate that Costco Wholesale Corporation will post 18.03 earnings per share for the current year.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were given 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 payout ratio is 27.85%.

Insiders Place Their Bets

In other news, EVP Russell D. Miller sold 1,500 shares of Costco Wholesale 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 transaction, the executive vice president directly owned 8,240 shares in the company, valued at approximately $7,550,476.80. This trade represents a 15.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Susan L. Decker sold 458 shares of the company’s stock in a transaction on Friday, January 16th. The shares were sold at an average price of $955.00, for a total value of $437,390.00. Following the completion of the sale, the director owned 8,532 shares of the company’s stock, valued at approximately $8,148,060. This trade represents a 5.09% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 6,915 shares of company stock valued at $6,317,097. 0.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Costco Wholesale

Several hedge funds and other institutional investors have recently bought and sold shares of COST. Lbmc Investment Advisors LLC grew its position in Costco Wholesale by 0.5% in the fourth quarter. Lbmc Investment Advisors LLC now owns 2,041 shares of the retailer’s stock worth $1,760,000 after buying an additional 10 shares during the last quarter. Hobbs Wealth Management LLC lifted its holdings in shares of Costco Wholesale by 4.4% during the second quarter. Hobbs Wealth Management LLC now owns 262 shares of the retailer’s stock valued at $259,000 after purchasing an additional 11 shares during the last quarter. Busey Bank boosted its position in shares of Costco Wholesale by 0.4% in the 3rd quarter. Busey Bank now owns 2,651 shares of the retailer’s stock valued at $2,454,000 after purchasing an additional 11 shares during the period. Pasadena Private Wealth LLC increased its stake in Costco Wholesale by 0.8% in the 3rd quarter. Pasadena Private Wealth LLC now owns 1,403 shares of the retailer’s stock worth $1,299,000 after purchasing an additional 11 shares in the last quarter. Finally, Tandem Investment Partners LLC increased its stake in Costco Wholesale by 1.1% in the 3rd quarter. Tandem Investment Partners LLC now owns 990 shares of the retailer’s stock worth $916,000 after purchasing an additional 11 shares in the last quarter. 68.48% of the stock is currently owned by institutional investors.

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.