Costco Wholesale (NASDAQ:COST) Stock Price Up 2% – Should You Buy?

Costco Wholesale Corporation (NASDAQ:COST) shares rose 2% on Friday . The stock traded as high as $1,022.88 and last traded at $1,018.48. Approximately 2,658,994 shares traded hands during mid-day trading, a decline of 0% from the average daily volume of 2,660,620 shares. The stock had previously closed at $998.86.

Key Costco Wholesale News

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

• Positive Sentiment: Analysts raised targets and maintained upbeat views — Bernstein lifted its price target (to $1,155) and kept an Outperform rating, and Evercore ISI raised its target to $1,050, supporting investor confidence in the name. Bernstein Boosts Costco Target
• Positive Sentiment: Costco is piloting e-commerce delivery in Europe — a meaningful international expansion of digital capabilities that could broaden addressable market and bolster long-term revenue growth. Costco Tests European E Commerce Delivery
• Positive Sentiment: Positive editorial and momentum coverage (Zacks, Fortune) highlight Costco’s strong momentum, growth characteristics, and resilience of its business model — reinforcing investor appetite for a premium consumer stock. Zacks: Strong Momentum Stock
• Positive Sentiment: Costco’s decision to maintain DEI programs while some peers rolled back such initiatives is being framed positively by the press and may help recruiting/branding — a soft but favorable reputational tailwind. Fortune: Costco defied Trump’s DEI directive
• Positive Sentiment: Promotions and strong member-product stories (regional store praise, popular Kirkland items, membership sign-up incentives) continue to support membership retention and new joins — steady drivers of recurring revenue. Membership promotion
• Neutral Sentiment: The U.S. Supreme Court will hear arguments on former President Trump’s tariffs (Feb. 20); retailers including Costco are involved in suits seeking refunds. Outcome is uncertain but could have material retroactive financial implications if rulings go either way. Supreme Court to hear Trump tariff case
• Neutral Sentiment: Valuation and analyst commentary: some outlets flag that COST trades at a premium (forward P/E elevated vs. peers), making it a “hold” for some investors despite strong fundamentals — a mixed input for flows. Zacks: Is Costco a Buy Now?
• Neutral Sentiment: Recent data on short interest appears inconsistent/glitched (reported zeros/NaNs) and is not a reliable driver of sentiment at present. (No actionable short-pressure signal.)
• Negative Sentiment: Costco recalled mini beignets across multiple states for undeclared hazelnut allergen — recalls can dent sales, inventory, and create localized reputational risk. Costco recalls mini beignets
• Negative Sentiment: Customer complaints about recent operational/format changes (coverage listing “10 Costco changes that made customers angry”) could pressure member sentiment if persistent, though current evidence suggests these are limited anecdotes rather than systemic membership loss. 10 Costco Changes That Made Customers Angry

Wall Street Analyst Weigh In

Several research analysts have commented on COST shares. Hovde Group assumed coverage on shares of Costco Wholesale in a report on Tuesday, November 18th. They issued a “market perform” rating and a $16.00 price objective for the company. Wells Fargo & Company upped their target price on shares of Costco Wholesale from $900.00 to $950.00 and gave the company an “equal weight” rating in a research note on Thursday, February 5th. Gordon Haskett upped their price target on Costco Wholesale from $1,000.00 to $1,100.00 in a research report on Tuesday, February 3rd. Truist Financial dropped 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. Finally, HSBC dropped their price objective on shares of Costco Wholesale from $1,060.00 to $1,045.00 and set a “hold” rating for the company in a research note on Friday, December 12th. Twenty-two research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Costco Wholesale has an average rating of “Moderate Buy” and an average target price of $1,009.00.

Costco Wholesale Stock Up 2.0%

The company has a debt-to-equity ratio of 0.19, a current ratio of 1.04 and a quick ratio of 0.53. The company has a market cap of $452.07 billion, a PE ratio of 54.55, a PEG ratio of 5.16 and a beta of 1.01. The business’s fifty day simple moving average is $920.48 and its two-hundred day simple moving average is $931.93.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings data on Thursday, December 11th. The retailer reported $4.34 earnings per share for the quarter, beating analysts’ consensus estimates of $4.27 by $0.07. The company had revenue of $67.31 billion for 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 firm’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter last year, the firm posted $4.04 EPS. On average, analysts predict 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 will be paid on Friday, February 13th. Investors of record on Friday, January 30th will be given a $1.30 dividend. The ex-dividend date of this dividend is Friday, January 30th. This represents a $5.20 dividend on an annualized basis and a yield of 0.5%. Costco Wholesale’s payout ratio is 27.85%.

Insider Activity

In related news, EVP James C. Klauer sold 1,500 shares of Costco Wholesale stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $939.00, for a total transaction of $1,408,500.00. Following the completion of the sale, the executive vice president owned 44,837 shares in the company, valued at approximately $42,101,943. This trade represents a 3.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Teresa A. Jones sold 850 shares of the company’s stock in a transaction that occurred on Wednesday, January 21st. The stock was sold at an average price of $986.26, for a total transaction of $838,321.00. Following the transaction, the executive vice president directly owned 4,228 shares of the company’s stock, valued at $4,169,907.28. This trade represents a 16.74% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 6,915 shares of company stock valued at $6,317,097. Insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Norges Bank acquired a new stake in Costco Wholesale during the 4th quarter valued at $5,195,415,000. Cardano Risk Management B.V. grew its holdings in shares of Costco Wholesale by 907.1% during the fourth quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer’s stock worth $1,539,346,000 after purchasing an additional 1,607,833 shares during the last quarter. Laurel Wealth Advisors LLC boosted its stake in shares of Costco Wholesale by 96,316.6% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 1,378,758 shares of the retailer’s stock valued at $1,364,888,000 after purchasing an additional 1,377,328 shares during the last quarter. Assenagon Asset Management S.A. increased its stake in Costco Wholesale by 1,586.8% in the fourth quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer’s stock valued at $980,857,000 after purchasing an additional 1,070,005 shares in the last quarter. Finally, Amundi boosted its holdings in shares of Costco Wholesale by 45.0% in the third quarter. Amundi now owns 3,176,606 shares of the retailer’s stock valued at $2,893,697,000 after buying an additional 986,182 shares during the period. Institutional investors own 68.48% of the company’s stock.

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.