Costco Wholesale (NASDAQ:COST) Stock Price Up 1.1% – Should You Buy?

Costco Wholesale Corporation (NASDAQ:COST)’s share price rose 1.1% during trading on Wednesday . The company traded as high as $1,042.52 and last traded at $1,033.08. Approximately 1,629,285 shares changed hands during mid-day trading, a decline of 22% from the average daily volume of 2,088,641 shares. The stock had previously closed at $1,021.88.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco opened a long-awaited warehouse in New Braunfels, Texas, adding to its store base and reinforcing investor confidence in continued unit growth and market expansion. Long-awaited Costco Wholesale now open in New Braunfels
• Positive Sentiment: Another report confirmed the New Braunfels store is now open for business, underscoring Costco’s ongoing rollout of new locations that can support membership and revenue growth. Costco Wholesale now open for business in New Braunfels
• Positive Sentiment: Analysts and market commentary continue to favor Costco’s membership-driven model, saying it benefits from resilient grocery demand and supports steady growth even in a volatile retail backdrop. WMT or COST: Which Retail Giant Looks More Attractive Now?
• Positive Sentiment: Costco’s purchase of a 55-acre property in Florida suggests the company is still investing in significant long-term store growth, which investors typically view as a sign of confidence in future demand. Costco Just Signed Off on a Massive Retail Real Estate Deal in Florida. Here’s What Investors Need to Know About Costco’s Store Growth Goals.
• Neutral Sentiment: Articles debating whether Costco is still a good buy after its multi-year rally mostly reinforce that the stock remains a quality business but is expensive, making the reaction more about valuation than any new fundamental change. Is It Too Late To Consider Costco Wholesale (COST) After Its Strong Multi Year Rally
• Neutral Sentiment: Coverage on Costco’s food court chicken tender launch is generating consumer buzz, but the main takeaway is mixed, with some concerns about whether it replaces a favorite item rather than clearly boosting the investment outlook. Costco food court chicken tender launch sparks concerns over item replacement
• Negative Sentiment: Some recent commentary flags Costco’s premium valuation and argues the stock may be difficult to justify at current levels, which can temper enthusiasm despite strong fundamentals. Costco: Strong Fundamentals Meet Growth Premium – A Hold Entering FQ3’26
• Negative Sentiment: Another Seeking Alpha piece argues there is a reason to sell Costco beyond valuation, adding to the cautious tone around the stock’s elevated price level. Costco: Another Reason To Sell (Besides The Valuation)

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on COST shares. Robert W. Baird set a $1,100.00 price target on Costco Wholesale in a research note on Thursday, February 5th. Evercore set a $1,100.00 price target on Costco Wholesale in a research note on Monday, March 2nd. BTIG Research reissued a “buy” rating and set a $1,115.00 price target on shares of Costco Wholesale in a research note on Thursday, March 5th. Rothschild & Co Redburn raised their price target on Costco Wholesale from $890.00 to $1,000.00 and gave the stock a “neutral” rating in a research note on Tuesday, February 17th. Finally, Sanford C. Bernstein reissued an “outperform” rating and set a $1,192.00 price target on shares of Costco Wholesale in a research note on Tuesday. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Costco Wholesale currently has an average rating of “Moderate Buy” and a consensus price target of $1,047.27.

Costco Wholesale Trading Up 0.7%

The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. The stock has a 50-day simple moving average of $1,000.06 and a two-hundred day simple moving average of $954.40. The firm has a market capitalization of $465.37 billion, a P/E ratio of 54.55, a price-to-earnings-growth ratio of 5.09 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share for the quarter, beating analysts’ consensus estimates of $4.55 by $0.03. The business had revenue of $69.60 billion during the quarter, compared to analyst estimates of $68.96 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.Costco Wholesale’s revenue was up 9.2% on a year-over-year basis. During the same period in the previous year, the company posted $4.02 EPS. On average, equities research analysts anticipate that Costco Wholesale Corporation will post 20.32 earnings per share for the current year.

Costco Wholesale Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 1st will be given a dividend of $1.47 per share. This is a boost from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend is Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s dividend payout ratio is presently 30.58%.

Insiders Place Their Bets

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the sale, the executive vice president directly owned 6,121 shares of the company’s stock, valued at $6,139,485.42. The trade was a 10.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of Costco Wholesale in the 4th quarter valued at $27,000. Mcguire Capital Advisors Inc. purchased a new position in shares of Costco Wholesale in the 4th quarter valued at $28,000. Hurley Capital LLC increased its holdings in shares of Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock valued at $31,000 after acquiring an additional 18 shares during the period. Lifetime Wealth Management P.C. purchased a new position in shares of Costco Wholesale in the 4th quarter valued at $28,000. Finally, Manning & Napier Advisors LLC increased its holdings in shares of Costco Wholesale by 750.0% in the 1st quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer’s stock valued at $34,000 after acquiring an additional 30 shares during the period. 68.48% of the stock is currently owned by hedge funds and other 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.