Costco Wholesale (NASDAQ:COST) Stock Price Up 1.1% – Should You Buy?

Costco Wholesale Corporation (NASDAQ:COST) shares rose 1.1% during trading on Thursday . The company traded as high as $990.01 and last traded at $972.5860. Approximately 2,321,941 shares traded hands during trading, an increase of 7% from the average daily volume of 2,172,109 shares. The stock had previously closed at $961.83.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco reported May net sales of $24.01 billion, up 14.5% year over year, extending its strong sales momentum and reinforcing investor confidence in traffic, memberships, and digital demand. Article Title
• Positive Sentiment: Several analysts reiterated bullish views, including UBS (Buy, $1,275 target), TD Cowen (Buy, $1,175 target), and William Blair (Buy), suggesting Wall Street still sees upside despite the premium valuation. Article Title
• Positive Sentiment: Commentary highlighted Costco’s strong U.S. comparable sales, traffic growth, fuel-driven demand, and reaccelerating e-commerce, all of which support the company’s defensive growth story. Article Title
• Positive Sentiment: Coverage also pointed to Costco’s e-commerce momentum and strong membership model as reasons the long-term trend remains intact. Article Title
• Neutral Sentiment: DA Davidson reaffirmed a neutral rating with a $1,000 target, implying modest upside but also signaling that the stock’s valuation remains a key debate. Article Title
• Neutral Sentiment: Articles on Costco’s dividend appeal and overall retail leadership were supportive, but they did not introduce a major new catalyst for the shares. Article Title
• Negative Sentiment: A report that Costco may refund tariff-related costs to customers raised concern that the company could absorb added expense or face margin pressure, helping explain some of the recent weakness. Article Title
• Negative Sentiment: Several pieces also stressed that Costco’s valuation is still rich after the earnings beat, which may limit near-term upside if growth cools even slightly. Article Title

Analysts Set New Price Targets

COST has been the topic of a number of research analyst reports. Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a research report on Monday. Sanford C. Bernstein lifted their target price on Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an “outperform” rating in a research report on Friday, May 29th. Truist Financial lifted their target price on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a research report on Friday, May 29th. Daiwa Securities Group lifted their target price on Costco Wholesale from $917.00 to $975.00 and gave the stock a “neutral” rating in a research report on Tuesday, March 10th. Finally, BMO Capital Markets lifted their target price on Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an “outperform” rating in a research report on Friday, March 6th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $1,060.41.

Costco Wholesale Trading Up 1.1%

The company has a 50 day simple moving average of $1,006.79 and a 200 day simple moving average of $963.58. The stock has a market capitalization of $431.49 billion, a PE ratio of 48.92, a P/E/G ratio of 4.62 and a beta of 0.88. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.72%. The business had revenue of $70.53 billion during the quarter, compared to analysts’ expectations of $70.12 billion. During the same period in the prior year, the firm posted $4.28 EPS. Analysts predict that Costco Wholesale Corporation will post 20.38 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were issued a $1.47 dividend. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. This is a boost from Costco Wholesale’s previous quarterly dividend of $1.30. Costco Wholesale’s dividend payout ratio is presently 29.58%.

Insiders Place Their Bets

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of Costco Wholesale 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 value of $732,204.60. Following the sale, 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

A number of institutional investors have recently added to or reduced their stakes in the business. FORA Capital LLC purchased a new stake in Costco Wholesale in the 3rd quarter valued at approximately $2,781,000. World Investment Advisors lifted its stake in Costco Wholesale by 8.4% in the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock valued at $15,835,000 after buying an additional 1,560 shares in the last quarter. Teacher Retirement System of Texas lifted its stake in Costco Wholesale by 24.5% in the 4th quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer’s stock valued at $121,098,000 after buying an additional 27,625 shares in the last quarter. Curtis Advisory Group LLC lifted its stake in Costco Wholesale by 56.7% in the 4th quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer’s stock valued at $3,911,000 after buying an additional 1,641 shares in the last quarter. Finally, Mariner LLC lifted its stake in Costco Wholesale by 1.5% in the 3rd quarter. Mariner LLC now owns 399,894 shares of the retailer’s stock valued at $370,140,000 after buying an additional 5,937 shares in the last quarter. Hedge funds and other institutional investors own 68.48% of the company’s stock.

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.