Costco Wholesale (NASDAQ:COST) Trading Up 2% – What’s Next?

Costco Wholesale Corporation (NASDAQ:COST) shares shot up 2% during mid-day trading on Monday . The company traded as high as $944.83 and last traded at $943.08. 3,209,010 shares were traded during mid-day trading, an increase of 3% from the average session volume of 3,124,884 shares. The stock had previously closed at $924.88.

Costco Wholesale News Summary

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

• Positive Sentiment: Mizuho upgrade — Mizuho moved COST to its top-picks list and upgraded the stock to Outperform, raising its price target (cited as $1,000 in coverage), which supports buying interest from institutional and retail investors. Costco (COST) Added to Mizuho Top Picks After Pullback
• Positive Sentiment: Sales acceleration — Recent reporting highlights that two key Costco sales metrics have accelerated, a development investors like because it points to continued membership spending and top-line momentum. 2 Key Costco Sales Metrics Just Accelerated, and Investors Love It
• Positive Sentiment: Card perk added — Costco quietly added a meaningful credit-card perk, which can boost transaction volume and member loyalty (positive for same-store sales and margins over time). Costco quietly added a major credit card perk
• Positive Sentiment: Ongoing expansion — Multiple local reports show new warehouse builds and store openings (e.g., Camarillo construction visible; plans in South Los Angeles and Dallas), underscoring continued footprint growth that supports revenue and membership expansion. Costco Camarillo warehouse and gas station construction now visible at site
• Neutral Sentiment: Long-term analyst/features — Several opinion pieces and comparative write-ups (Where Will Costco Be in 5 Years?; Costco vs. Home Depot) reiterate Costco’s strong long-term track record but do not introduce new catalysts. These items support the bull case but are not immediate drivers. Where Will Costco Be in 5 Years?
• Neutral Sentiment: Short-interest data glitch — A report flagged a “significant increase” in short interest but shows zero shares and a zero days-to-cover figure, indicating a likely data error rather than a market pressure signal. Investors should treat short-interest headlines cautiously until clarified. (Data source: market summary)
• Negative Sentiment: Insider sale — EVP Russell D. Miller sold 1,500 shares (disclosed SEC Form 4), reducing his holding by ~15.4% in that transaction; insider sales can be read negatively by some investors even when small relative to total holdings. SEC filing — Form 4 (Russell D. Miller)

Analysts Set New Price Targets

A number of research firms recently weighed in on COST. Robert W. Baird dropped their price target on Costco Wholesale from $1,125.00 to $1,000.00 and set an “outperform” rating on the stock in a research note on Friday, December 12th. Jefferies Financial Group reiterated a “buy” rating on shares of Costco Wholesale in a report on Thursday, October 9th. Mizuho set a $1,000.00 target price on shares of Costco Wholesale and gave the stock an “outperform” rating in a research note on Monday, January 5th. HSBC reduced their price objective on Costco Wholesale from $1,060.00 to $1,045.00 and set a “hold” rating for the company in a report on Friday, December 12th. Finally, Raymond James Financial decreased their price objective on Costco Wholesale from $1,070.00 to $1,000.00 and set an “outperform” rating on the stock in a report on Friday, December 12th. Twenty-one investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $996.00.

Costco Wholesale Stock Performance

The stock has a 50 day moving average of $892.88 and a 200 day moving average of $930.80. 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 firm has a market cap of $418.60 billion, a price-to-earnings ratio of 50.51, a P/E/G ratio of 5.54 and a beta of 1.02.

Costco Wholesale (NASDAQ:COST) last released its earnings results on Thursday, December 11th. The retailer reported $4.34 EPS for the quarter, beating the consensus estimate of $4.27 by $0.07. Costco Wholesale had a net margin of 2.96% and a return on equity of 29.35%. The firm had revenue of $67.31 billion for the quarter, compared to analyst estimates of $67.03 billion. During the same period last year, the firm earned $4.04 EPS. The business’s quarterly revenue was up 8.3% compared to the same quarter last year. As a group, analysts anticipate that Costco Wholesale Corporation will post 18.03 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, November 14th. Shareholders of record on Friday, October 31st were given a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Friday, October 31st. Costco Wholesale’s payout ratio is currently 27.85%.

Insider Activity

In other news, insider Tiffany Marie Barbre sold 1,239 shares of the stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $934.62, for a total value of $1,157,994.18. Following the completion of the transaction, the insider owned 5,155 shares of the company’s stock, valued at approximately $4,817,966.10. This represents a 19.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP William Richard Wilcox sold 2,400 shares of the firm’s stock in a transaction that occurred on Friday, November 7th. The shares were sold at an average price of $930.13, for a total transaction of $2,232,312.00. Following the completion of the sale, the executive vice president owned 2,000 shares in the company, valued at approximately $1,860,260. The trade was a 54.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 10,446 shares of company stock valued at $9,549,528. Corporate insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its position 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 during the last quarter. State Street Corp increased its stake in shares of Costco Wholesale by 0.5% in the second quarter. State Street Corp now owns 18,325,416 shares of the retailer’s stock valued at $18,141,062,000 after buying an additional 90,107 shares during the period. Geode Capital Management LLC raised its holdings in Costco Wholesale by 1.5% in the 2nd quarter. Geode Capital Management LLC now owns 10,275,056 shares of the retailer’s stock valued at $10,124,263,000 after buying an additional 150,844 shares during the last quarter. Norges Bank acquired a new stake in Costco Wholesale during the 2nd quarter worth approximately $5,692,035,000. Finally, Invesco Ltd. grew its holdings in Costco Wholesale by 9.8% during the 2nd quarter. Invesco Ltd. now owns 4,291,557 shares of the retailer’s stock worth $4,248,384,000 after acquiring an additional 383,887 shares during the last quarter. 68.48% of the stock is currently 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.