Costco Wholesale (NASDAQ:COST) Shares Up 1.3% – Here’s What Happened

Costco Wholesale Corporation (NASDAQ:COST) shares were up 1.3% during trading on Monday. The company traded as high as $960.74 and last traded at $959.44. Approximately 1,464,697 shares changed hands during trading, a decline of 33% from the average session volume of 2,188,857 shares. The stock had previously closed at $946.92.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco reported strong September operating momentum, with net sales rising 13% year over year to $30.02 billion and digitally enabled sales increasing 19%. The results reinforce expectations that membership growth, value-focused pricing and e-commerce expansion can support revenue growth. Should Costco’s September Sales Jump and Faster Digital Growth Require Action From Costco Wholesale Investors?
• Positive Sentiment: An investment thesis highlighted potential upside from new warehouse openings and continued digital growth. Costco’s strong balance sheet—including approximately $21.3 billion of liquidity, manageable debt and robust cash flow—could help fund expansion while limiting financial risk. How Costco’s Balance Sheet Gives It an Edge Over Retail Competitors
• Positive Sentiment: Erste Group raised its FY2027 earnings forecast to $22.80 per share from $22.67 and projects FY2028 earnings of $25.01 per share, supporting the view that Costco’s earnings trajectory remains favorable.
• Positive Sentiment: Costco received early approval for a new Florida warehouse, adding to its long-term store expansion opportunity. The company is also attracting younger members, potentially broadening its customer base.
• Neutral Sentiment: Limited-time merchandise, including an exclusive Häagen-Dazs holiday offering, may support customer engagement but is unlikely to materially affect valuation or earnings.
• Negative Sentiment: Costco trades at a premium valuation, with a price-to-earnings ratio near 47 and a price-to-earnings-growth ratio above 4. Higher Treasury yields also make the company’s low dividend less competitive, leaving the stock vulnerable if growth expectations weaken. Costco Wholesale Stock Loses to 10-Year U.S. Treasury Notes on Yield

Analysts Set New Price Targets

COST has been the topic of a number of recent research reports. BMO Capital Markets reissued an “outperform” rating on shares of Costco Wholesale in a research report on Friday, September 25th. HSBC raised Costco Wholesale to a “buy” rating in a report on Friday, September 25th. DA Davidson upped their price target on Costco Wholesale from $1,000.00 to $1,040.00 and gave the company a “neutral” rating in a report on Friday, September 25th. Mizuho reduced their price objective on Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating for the company in a research report on Friday, September 25th. Finally, Bank of America decreased their price objective on Costco Wholesale from $1,200.00 to $1,095.00 and set a “buy” rating on the stock in a report on Wednesday, September 16th. Twenty-three research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Costco Wholesale currently has an average rating of “Moderate Buy” and a consensus target price of $1,081.79.

Costco Wholesale Trading Up 2.9%

The company has a 50 day moving average of $930.95 and a 200 day moving average of $963.12. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. The firm has a market cap of $435.15 billion, a price-to-earnings ratio of 47.30, a price-to-earnings-growth ratio of 4.07 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating analysts’ consensus estimates of $6.54 by $0.21. The firm had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The business’s revenue was up 11.1% compared to the same quarter last year. During the same period in the prior year, the business posted $5.87 earnings per share. As a group, research analysts anticipate that Costco Wholesale Corporation will post 22.85 EPS for the current year.

Insider Activity at Costco Wholesale

In other news, EVP Claudine Adamo sold 2,200 shares of the company’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total value of $2,015,046.00. Following the sale, the executive vice president owned 7,134 shares of the company’s stock, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.10% of the company’s stock.

Hedge Funds Weigh In On Costco Wholesale

Institutional investors have recently added to or reduced their stakes in the company. State Street Corp raised its holdings in Costco Wholesale by 31.7% during the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock worth $22,359,224,000 after purchasing an additional 5,749,362 shares during the last quarter. Bank of America Corp DE lifted its position in shares of Costco Wholesale by 11.5% in the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock worth $7,488,203,000 after purchasing an additional 773,651 shares during the period. Diamant Asset Management Inc. boosted its stake in shares of Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock valued at $672,690,000 after purchasing an additional 6,720,130 shares during the last quarter. Corient Private Wealth LLC boosted its stake in shares of Costco Wholesale by 838.9% in the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock valued at $5,282,182,000 after purchasing an additional 5,472,968 shares during the last quarter. Finally, Invesco Ltd. increased its position in shares of Costco Wholesale by 3.4% during the fourth quarter. Invesco Ltd. now owns 4,328,729 shares of the retailer’s stock worth $3,732,836,000 after buying an additional 143,150 shares during the period. 68.48% of the stock is owned by institutional investors.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.