Costco Wholesale (NASDAQ:COST) Stock Price Up 2.9% – Time to Buy?

Costco Wholesale Corporation (NASDAQ:COST) shot up 2.9% on Thursday . The stock traded as high as $952.64 and last traded at $951.67. Approximately 2,759,650 shares traded hands during mid-day trading, an increase of 23% from the average daily volume of 2,242,780 shares. The stock had previously closed at $924.67.

Key Costco Wholesale News

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

• Positive Sentiment: Analysts have been raising earnings estimates for Costco, with Erste Group Bank nudging up its FY2027 EPS view above consensus, reinforcing confidence in the company’s long-term profit growth. Estimate raise article
• Positive Sentiment: New warehouse openings in Texas, South Carolina, and Southern California highlight Costco’s continued store expansion, which can support sales growth, membership gains, and market share. New warehouse expansion article
• Positive Sentiment: Several articles reiterated Costco’s appeal as a long-term compounding stock thanks to its value proposition, membership loyalty, and steady cash generation, which may keep investor sentiment constructive. Passive income article
• Neutral Sentiment: Multiple pieces asked whether a stock split could happen in 2026 now that COST trades below $1,000; this may attract attention, but it does not change fundamentals. Stock split article
• Neutral Sentiment: Market commentary also pointed out that Costco remains expensive on earnings after a strong multi-year run, suggesting the stock’s valuation may limit upside if growth moderates. Valuation article
• Negative Sentiment: One analysis warned that Costco’s fuel-related traffic boost may be losing momentum as gas prices fall, creating execution risk for a key growth engine and potentially pressuring the stock. Fuel traffic risk article

Wall Street Analyst Weigh In

A number of brokerages have issued reports on COST. Truist Financial boosted their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a “hold” rating in a research report on Friday, May 29th. JPMorgan Chase & Co. increased their price target on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an “overweight” rating in a research note on Friday, April 17th. The Goldman Sachs Group raised their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Raymond James Financial lifted their price objective on Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an “outperform” rating in a research report on Friday, March 6th. Finally, Bank of America upped their target price on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $1,061.45.

Costco Wholesale Trading Up 2.9%

The stock’s fifty day moving average price is $992.50 and its 200 day moving average price is $972.25. The stock has a market cap of $422.05 billion, a P/E ratio of 47.87, a PEG ratio of 4.53 and a beta of 0.88. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST) last announced its earnings results 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 28.04%. The business had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the prior year, the business posted $4.28 EPS. Equities research analysts expect that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were issued a dividend of $1.47 per share. The ex-dividend date was Friday, May 1st. This is a boost from Costco Wholesale’s previous quarterly dividend of $1.30. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio is 29.58%.

Insider Activity

In related news, Director Kenneth D. Denman sold 885 shares of the company’s stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. The trade was a 15.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. FORA Capital LLC purchased a new position in Costco Wholesale in the third quarter worth about $2,781,000. World Investment Advisors lifted its stake in shares of Costco Wholesale by 8.4% in the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock worth $15,835,000 after purchasing an additional 1,560 shares during the period. Teacher Retirement System of Texas lifted its stake in shares of Costco Wholesale by 24.5% in the 4th quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer’s stock worth $121,098,000 after purchasing an additional 27,625 shares during the period. Curtis Advisory Group LLC boosted its holdings in shares of Costco Wholesale by 56.7% in the fourth quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer’s stock worth $3,911,000 after buying an additional 1,641 shares during the last quarter. Finally, Perryman Financial Advisory Inc. AD purchased a new position in shares of Costco Wholesale in the fourth quarter worth approximately $9,300,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

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.