Costco Wholesale (NASDAQ:COST) Stock Jumps 1.4% – Time to Buy?

Costco Wholesale Corporation (NASDAQ:COST)’s share price was up 1.4% on Thursday. The company traded as high as $996.42 and last traded at $996.08. Approximately 1,590,124 shares were traded during trading, a decline of 27% from the average session volume of 2,189,452 shares. The stock had previously closed at $982.73.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Store expansion supports long-term growth. Costco plans to open 13 locations by the end of 2026, potentially expanding its membership base and sales footprint. Costco opening 13 locations by end of 2026
• Positive Sentiment: Membership acquisition remains a focus. A promotional offer providing new members with a $45 gift card could help drive sign-ups ahead of the holiday shopping season, supporting recurring membership-fee revenue. Costco membership Black Friday deal
• Positive Sentiment: Analysts expect continued earnings momentum. Costco’s upcoming fiscal first-quarter 2027 report is expected to show double-digit year-over-year EPS growth. Its latest quarter also beat consensus estimates on both earnings and revenue. What to expect from Costco Wholesale’s next quarterly earnings report
• Positive Sentiment: Customer loyalty and digital engagement remain strengths. Coverage highlights near-record renewal rates, busy warehouses, a younger shopper base and growing use of Costco’s digital channels. These factors reinforce the company’s competitive advantages and long-term sales potential. The New Costco Shopper Is Under 40
• Neutral Sentiment: Healthcare partnerships could deepen member engagement. Integrations with NationsBenefits and SCAN Health Plan are expanding Costco’s role in Medicare-related spending across more than 600 U.S. warehouses, though the financial contribution is not yet clear. Medicare push and Costco investors
• Negative Sentiment: Valuation leaves little room for disappointment. Costco trades at roughly 49 times earnings, making execution and upcoming results especially important. Analysts remain positive, but the stock’s premium valuation could amplify downside if growth slows. Costco stock’s long-term competitive advantages

Analysts Set New Price Targets

COST has been the topic of a number of recent research reports. Truist Financial dropped their price target on shares of Costco Wholesale from $1,011.00 to $955.00 and set a “hold” rating on the stock in a research note on Friday, September 25th. Roth Capital reiterated a “sell” rating and set a $781.00 price target on shares of Costco Wholesale in a research report on Friday, September 25th. Weiss Ratings raised shares of Costco Wholesale from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, October 23rd. Evercore reiterated an “outperform” rating on shares of Costco Wholesale in a research report on Tuesday, September 22nd. Finally, UBS Group reiterated a “buy” rating on shares of Costco Wholesale in a report on Thursday, September 17th. One investment analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $1,086.19.

Costco Wholesale Stock Performance

The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. The business’s 50-day moving average is $943.31 and its 200-day moving average is $970.25. The company has a market capitalization of $448.57 billion, a PE ratio of 48.76, a PEG ratio of 4.26 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating the consensus estimate of $6.54 by $0.21. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The business had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. During the same period last year, the business posted $5.87 EPS. The company’s revenue was up 11.1% compared to the same quarter last year. On average, research analysts anticipate that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Costco Wholesale Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be issued a $1.47 dividend. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale’s dividend payout ratio is currently 28.32%.

Insider Activity at Costco Wholesale

In related news, EVP Claudine Adamo sold 2,200 shares of the company’s stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the completion of the transaction, the executive vice president owned 7,134 shares in the company, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the firm’s stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total value of $1,054,031.00. Following the transaction, the executive vice president owned 3,094 shares of the company’s stock, valued at $2,964,701.74. This represents a 26.23% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.10% of the company’s stock.

Hedge Funds Weigh In On Costco Wholesale

Institutional investors have recently modified their holdings of the stock. Contravisory Investment Management Inc. grew its holdings in Costco Wholesale by 107.7% during the 3rd quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer’s stock valued at $25,000 after buying an additional 14 shares in the last quarter. C M Bidwell & Associates Ltd. purchased a new position in shares of Costco Wholesale during the second quarter valued at about $28,000. Burk Holdings LLC purchased a new stake in shares of Costco Wholesale in the second quarter worth about $30,000. Manning & Napier Advisors LLC bought a new stake in Costco Wholesale in the 2nd quarter worth approximately $30,000. Finally, John Boyer Inc. bought a new position in shares of Costco Wholesale during the 3rd quarter valued at approximately $32,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.