Costco Wholesale (NASDAQ:COST) Trading 1.3% Higher on Analyst Upgrade

Shares of Costco Wholesale Corporation (NASDAQ:COST) rose 1.3% on Friday after JPMorgan Chase & Co. raised their price target on the stock from $1,060.00 to $1,110.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Costco Wholesale traded as high as $1,000.67 and last traded at $999.89. Approximately 2,335,973 shares were traded during mid-day trading, an increase of 7% from the average daily volume of 2,185,887 shares. The stock had previously closed at $987.21.

Several other equities analysts have also recently issued reports on the stock. Oppenheimer upped their target price on shares of Costco Wholesale from $1,050.00 to $1,100.00 and gave the company an “outperform” rating in a research note on Thursday, February 5th. TD Cowen restated a “buy” rating on shares of Costco Wholesale in a report on Friday, March 6th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Costco Wholesale from $1,103.00 to $1,104.00 and gave the company a “buy” rating in a research note on Thursday, April 9th. BTIG Research reaffirmed a “buy” rating and issued a $1,115.00 price objective on shares of Costco Wholesale in a report on Thursday, March 5th. Finally, Robert W. Baird set a $1,100.00 target price on Costco Wholesale in a report on Thursday, February 5th. Twenty-two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $1,045.97.

Insider Activity

In other Costco Wholesale news, EVP Teresa A. Jones sold 850 shares of the firm’s stock in a transaction that occurred on Wednesday, January 21st. The shares were sold at an average price of $986.26, for a total transaction of $838,321.00. Following the sale, the executive vice president owned 4,228 shares in the company, valued at approximately $4,169,907.28. This trade represents a 16.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Claudine Adamo sold 730 shares of the company’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the transaction, the executive vice president owned 6,121 shares of the company’s stock, valued at approximately $6,139,485.42. The trade was a 10.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.10% of the stock is owned by company insiders.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Board raises quarterly dividend to $1.47 (13.1% increase), payable May 15 — a direct signal of strong cash flow and shareholder returns that typically supports the share price. Costco Dividend Increase (GlobeNewswire)
• Positive Sentiment: Major sell-side shops raised targets and kept bullish ratings — JPMorgan lifted its PT to $1,110 (overweight) and Mizuho raised its PT to $1,100 (outperform). Analyst upgrades reinforce upside expectations and likely drove buying. JPMorgan Raises Price Target (MarketScreener) Mizuho Raises Price Target (MarketScreener)
• Positive Sentiment: Strong March sales and product/tech initiatives — Costco reported March net sales of $28.41B (YTD $173.26B) while rolling out exclusive product partnerships and automating checkout — a combination that supports both top-line and member differentiation. Bull Case: Dividend Hike & March Sales Update (Yahoo Finance)
• Positive Sentiment: Fuel sales and high gas prices are boosting sales at Costco gas stations — analysts note Costco is “selling a lot of gas,” which can drive traffic and incremental gross profit for the company. Costco Fuel Sales (TipRanks)
• Positive Sentiment: Competitive dynamics: Sam’s Club and others are raising membership fees — moves by rivals could reduce price sensitivity and help Costco retain/attract members given its perceived value. Sam’s Club Membership Fee Increases (The Motley Fool)
• Neutral Sentiment: Industry tech tailwind: grocers are adopting AI to reduce perishables waste and improve pricing — a trend that could help margins over time but is execution-dependent. Grocers Using AI to Cut Waste (CNBC)
• Neutral Sentiment: Checkout automation pilots (automated pay stations) are being tested to reduce queues — potentially positive for throughput but will require investment and rollout to materially affect results. Costco Tests Automated Pay Stations (WKYC)

Hedge Funds Weigh In On Costco Wholesale

Large investors have recently made changes to their positions in the business. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale in the 4th quarter worth approximately $27,000. Lifetime Wealth Management P.C. purchased a new stake in Costco Wholesale during the 4th quarter valued at approximately $28,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale during the fourth quarter valued at approximately $28,000. Hurley Capital LLC raised its position in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock valued at $31,000 after buying an additional 18 shares during the last quarter. Finally, Entrust Financial LLC purchased a new position in shares of Costco Wholesale in the fourth quarter worth $31,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Trading Up 1.3%

The stock has a market cap of $443.60 billion, a P/E ratio of 52.00, a price-to-earnings-growth ratio of 4.85 and a beta of 0.99. The stock’s 50-day moving average is $995.77 and its two-hundred day moving average is $944.13. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The company had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. During the same period in the previous year, the firm posted $4.02 EPS. Costco Wholesale’s revenue for the quarter was up 9.2% compared to the same quarter last year. Equities research analysts anticipate that Costco Wholesale Corporation will post 18.03 EPS for the current year.

Costco Wholesale Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be given a $1.47 dividend. This is an increase from Costco Wholesale’s previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Friday, May 1st. Costco Wholesale’s dividend payout ratio (DPR) is presently 27.04%.

Costco Wholesale Company Profile

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.