Costco Wholesale (NASDAQ:COST) Trading 1.6% Higher – Should You Buy?

Costco Wholesale Corporation (NASDAQ:COST) shares were up 1.6% during trading on Tuesday . The stock traded as high as $987.55 and last traded at $966.58. Approximately 2,623,146 shares were traded during trading, an increase of 17% from the average session volume of 2,238,886 shares. The stock had previously closed at $951.58.

Costco Wholesale News Roundup

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

• Positive Sentiment: A new gasoline-sales experiment could create an additional growth engine for Costco and potentially strengthen customer traffic, membership economics and fuel-related revenue over time. The article characterizes the initiative as potentially transformative, although the financial impact remains uncertain. Costco: A New Experiment With Gasoline Sales Could Fundamentally Transform the Company
• Positive Sentiment: Analysts continue to view COST as a strong momentum stock, supported by its resilient operating model, customer loyalty and long-term earnings growth. This may help sustain investor interest despite the premium valuation. Why Costco Is a Strong Momentum Stock
• Positive Sentiment: Costco’s partnership with Coco5 will add a new athlete-backed hydration product to its stores, providing potential incremental sales and reinforcing the retailer’s health-focused merchandising strategy. Coco5 Signs Retail Partnership With Costco
• Positive Sentiment: The Federal Reserve’s decision to hold interest rates steady, together with renewed demand for defensive dividend stocks, may support Costco’s appeal as a relatively stable retailer. Fed Holds Rates and Implications for Costco
• Neutral Sentiment: Costco’s fully off-grid Florida distribution center, powered by solar and batteries, supports sustainability goals and could reduce long-term energy exposure, but the near-term earnings effect appears limited. Costco Runs Florida Distribution Center Off the Grid
• Negative Sentiment: Costco agreed to a $14 million settlement over allegations that promotional emails used misleading expiration language. Although the company denied wrongdoing, the settlement creates modest legal costs and possible reputational risk. Costco’s $14 Million Email Settlement
• Negative Sentiment: An animal-rights investigation alleged serious mistreatment and biosecurity violations at an organic chicken supplier connected to Costco. The allegations could increase supply-chain scrutiny and reputational risk, though no direct financial impact has been established. Investigation Into Costco Chicken Supplier

Wall Street Analysts Forecast Growth

COST has been the topic of several analyst reports. UBS Group upped their target price on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a “buy” rating in a report on Wednesday, May 20th. Mizuho set a $1,100.00 price objective on Costco Wholesale in a report on Monday, June 1st. Guggenheim reissued a “neutral” rating on shares of Costco Wholesale in a research note on Monday, June 1st. The Goldman Sachs Group upped their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Finally, Deutsche Bank Aktiengesellschaft increased their price target on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Twenty-two research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Costco Wholesale presently has an average rating of “Moderate Buy” and an average target price of $1,059.07.

Costco Wholesale Stock Down 1.9%

The firm has a fifty day simple moving average of $958.85 and a 200-day simple moving average of $982.10. The firm has a market cap of $423.60 billion, a price-to-earnings ratio of 48.05, a P/E/G ratio of 4.67 and a beta of 0.88. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). The company had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same quarter in the prior year, the firm earned $4.28 earnings per share. As a group, sell-side analysts expect that Costco Wholesale Corporation will post 20.42 EPS for the current year.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Friday, July 24th will be paid a $1.47 dividend. The ex-dividend date is Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s dividend payout ratio is 29.58%.

Insider Transactions at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of the business’s stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the sale, the director 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 sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in Costco Wholesale by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer’s stock worth $37,615,889,000 after purchasing an additional 165,349 shares in the last quarter. Geode Capital Management LLC grew 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 worth $8,919,573,000 after purchasing an additional 26,690 shares in the last quarter. Morgan Stanley grew 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 worth $8,212,433,000 after purchasing an additional 107,775 shares in the last quarter. Bank of America Corp DE increased its holdings in shares of Costco Wholesale by 11.5% during the first 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 during the period. Finally, Diamant Asset Management Inc. raised its position in shares of Costco Wholesale by 99,278.0% in the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock valued at $672,690,000 after buying an additional 6,720,130 shares in the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.

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.