Costco Wholesale (NASDAQ:COST) Shares Up 1.1% – Time to Buy?

Costco Wholesale Corporation (NASDAQ:COST) traded up 1.1% on Thursday . The stock traded as high as $1,006.21 and last traded at $1,003.2260. 1,664,913 shares changed hands during mid-day trading, a decline of 31% from the average session volume of 2,405,383 shares. The stock had previously closed at $992.23.

Costco Wholesale News Summary

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

• Positive Sentiment: Q2 beat and membership strength: Costco reported stronger-than-expected FQ2 results (revenue and EPS beats) and management highlighted membership growth and traffic as key drivers, underpinning confidence in recurring fee income and sales momentum. Costco Reports $68.24B FQ2 Sales
• Positive Sentiment: Membership mix and premium sign‑ups: Executive membership growth (near 40M members, +~9%) supports higher-margin recurring fee income and may sustain revenue per member. This is a structural tailwind for margins and cash flow. Is a $130 Costco executive membership the new VIP status?
• Positive Sentiment: In‑warehouse innovation and product drops: Expanded in‑warehouse experiences, curated product drops (e.g., fashion/brand collaborations) and new assortments (including third‑party brands like Hiboy e‑bikes) are helping traffic and impulse sales. Costco Expands In‑Warehouse Experiences Hiboy C1 E‑Bike Lands at Costco
• Neutral Sentiment: Digital growth and traffic resilience: Management says digital sales and e‑commerce expansion remain contributors to growth, but macro headwinds (e.g., energy-driven pressure on discretionary budgets) add uncertainty to near‑term sales cadence. Costco Says Shoppers Are Still Spending Rising gas prices could offset tax refunds
• Neutral Sentiment: Insider sale: An EVP disclosed a sale of ~730 shares; the size is immaterial relative to Costco’s market cap and does not signal a clear change in insider confidence. Executive Form 4
• Negative Sentiment: Tariff‑refund lawsuits create legal overhang: Multiple proposed class‑action suits allege Costco must pass along refunds to customers after the Supreme Court struck down certain Trump‑era tariffs; plaintiffs seek substantial recoveries and class status, introducing potential liability, administrative burden and PR risk until resolved. Reuters: Costco customers sue
• Negative Sentiment: Complex legal landscape: Coverage notes the situation is “messy” — Costco has also pursued government action to recover tariff amounts, but parallel suits against the company could keep volatility and headline risk elevated until legal outcomes and any government refunds are clarified. Barron’s: Tariff refunds are getting messy

Analyst Ratings Changes

COST has been the topic of several research analyst reports. Daiwa Securities Group upped their price objective on Costco Wholesale from $917.00 to $975.00 and gave the company a “neutral” rating in a research report on Tuesday. Weiss Ratings restated a “hold (c+)” rating on shares of Costco Wholesale in a report on Monday, December 29th. DA Davidson reissued a “neutral” rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a research report on Friday, March 6th. Gordon Haskett raised their target price on shares of Costco Wholesale from $1,000.00 to $1,100.00 in a research report on Tuesday, February 3rd. Finally, Oppenheimer lifted their price target 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. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Costco Wholesale presently has an average rating of “Moderate Buy” and a consensus target price of $1,039.13.

Costco Wholesale Stock Up 0.5%

The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. The firm has a market cap of $447.61 billion, a PE ratio of 52.44, a P/E/G ratio of 5.07 and a beta of 1.01. The business’s 50-day simple moving average is $975.52 and its 200 day simple moving average is $937.17.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings data on Thursday, March 5th. The retailer reported $4.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.55 by $0.03. The firm had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The company’s quarterly revenue was up 9.2% on a year-over-year basis. During the same period last year, the firm earned $4.02 earnings per share. As a group, equities research analysts expect that Costco Wholesale Corporation will post 18.03 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, January 30th were given a dividend of $1.30 per share. The ex-dividend date of this dividend was Friday, January 30th. This represents a $5.20 dividend on an annualized basis and a yield of 0.5%. Costco Wholesale’s dividend payout ratio (DPR) is presently 27.04%.

Insider Buying and Selling

In related news, EVP Claudine Adamo sold 730 shares of the business’s stock in a transaction that occurred on Monday, March 9th. The shares were 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 in the company, valued at $6,139,485.42. The trade was a 10.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Teresa A. Jones sold 850 shares of the 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 directly owned 4,228 shares of the company’s stock, valued at $4,169,907.28. The trade was a 16.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 7,645 shares of company stock valued at $7,049,302 over the last three months. Corporate insiders own 0.10% of the company’s stock.

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 stake in Costco Wholesale in the fourth quarter valued at about $27,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Costco Wholesale during the fourth quarter valued at $28,000. Hurley Capital LLC increased its position in shares of Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock valued at $31,000 after acquiring an additional 18 shares during the period. Lifetime Wealth Management P.C. purchased a new position in Costco Wholesale in the 4th quarter worth $28,000. Finally, Entrust Financial LLC acquired a new stake in Costco Wholesale during the 4th quarter worth about $31,000. 68.48% of the stock is owned by institutional investors and hedge funds.

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.