Costco Wholesale (NASDAQ:COST) Shares Up 2% – Time to Buy?

Costco Wholesale Corporation (NASDAQ:COST) traded up 2% on Thursday. The company traded as high as $1,018.86 and last traded at $1,018.21. 2,597,562 shares were traded during trading, an increase of 19% from the average session volume of 2,191,760 shares. The stock had previously closed at $998.31.

Costco Wholesale News Roundup

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

• Positive Sentiment: Analyst support remains strong. CICC initiated coverage with an Outperform rating, while Tigress Financial raised its price target to $1,250. Erste Group also increased its FY2028 EPS estimate to $25.07 from $25.01, above the current-year consensus estimate of $22.70. CICC coverage article Tigress Financial price target article
• Positive Sentiment: Growth and customer engagement remain key positives. Costco’s membership model has delivered substantial long-term shareholder returns, and the company is reportedly using purchasing data to better target high-spending members. REJURAN Cosmetics is also expanding through Costco’s first Beauty Table program, potentially adding traffic and broadening its premium beauty offering. Costco customer spending article REJURAN retail expansion article
• Neutral Sentiment: Long-term growth screens are favorable, and analysts’ average recommendation is equivalent to a Buy. However, these reports largely reiterate existing optimism rather than provide a new earnings catalyst. Zacks growth stock article
• Negative Sentiment: Valuation and competition remain concerns. Costco trades at a high earnings multiple, leaving the stock sensitive to profit-taking or disappointing growth. Kroger is planning major investments and price cuts to win back market share from Costco and Walmart, which could intensify grocery competition and pressure margins. Kroger competition article

Wall Street Analysts Forecast Growth

COST has been the topic of a number of recent analyst reports. Truist Financial cut their target price on Costco Wholesale from $1,011.00 to $955.00 and set a “hold” rating on the stock in a research report on Friday, September 25th. DA Davidson raised their price target on shares of Costco Wholesale from $1,000.00 to $1,040.00 and gave the stock a “neutral” rating in a research report on Friday, September 25th. Raymond James Financial decreased their price target on shares of Costco Wholesale from $1,100.00 to $1,050.00 and set an “outperform” rating for the company in a research report on Friday, September 25th. Jefferies Financial Group dropped their price target on shares of Costco Wholesale from $1,130.00 to $1,100.00 in a research note on Friday, September 25th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $1,000.00 price target on shares of Costco Wholesale in a report on Friday, October 9th. Twenty-five research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $1,086.19.

Costco Wholesale Stock Performance

The company has a fifty day moving average of $937.96 and a two-hundred day moving average of $963.21. The stock has a market capitalization of $444.60 billion, a P/E ratio of 48.33, a price-to-earnings-growth ratio of 4.35 and a beta of 0.88. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62.

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

Costco Wholesale Announces Dividend

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

Insider Buying and Selling at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the 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 sale, the executive vice president directly owned 7,134 shares of the company’s stock, 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 document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of the firm’s stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the transaction, the executive vice president owned 3,094 shares in the company, valued at approximately $2,964,701.74. The trade was a 26.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Costco Wholesale

A number of large investors have recently bought and sold shares of the business. Contravisory Investment Management Inc. grew its stake in Costco Wholesale by 107.7% during the 3rd quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer’s stock worth $25,000 after buying an additional 14 shares during the last quarter. C M Bidwell & Associates Ltd. bought a new stake in Costco Wholesale in the second quarter valued at $28,000. Burk Holdings LLC bought a new stake in Costco Wholesale in the second quarter valued at $30,000. Manning & Napier Advisors LLC acquired a new position in shares of Costco Wholesale during the second quarter valued at $30,000. Finally, Bullseye Investment Management LLC acquired a new position in shares of Costco Wholesale during the second quarter valued at $35,000. Institutional investors own 68.48% of the company’s stock.

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.