Costco Wholesale (NASDAQ:COST) Shares Up 1.6% – Still a Buy?

Costco Wholesale Corporation (NASDAQ:COST)’s stock price shot up 1.6% on Friday. The stock traded as high as $1,021.31 and last traded at $1,012.28. Approximately 3,343,753 shares changed hands during mid-day trading, an increase of 52% from the average session volume of 2,195,486 shares. The stock had previously closed at $996.08.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Costco plans to open 13 locations by the end of 2026, supporting warehouse growth, membership expansion and future sales. The report also addresses whether any new stores will open in Florida. Costco opening 13 locations by end of 2026
• Positive Sentiment: Analysts expect Costco’s upcoming fiscal first-quarter 2027 results to show double-digit year-over-year EPS growth, maintaining optimism around the retailer’s operating momentum. With Costco trading at a high earnings multiple, a strong report could support the stock, while any miss could amplify valuation pressure. What to Expect From Costco Wholesale’s Next Quarterly Earnings Report
• Positive Sentiment: Costco’s integration with NationsBenefits will allow members to use healthcare Flex Cards at more than 600 U.S. warehouses. The initiative could increase customer visits, broaden member engagement and add another recurring-use case beyond traditional bulk shopping. Medicare Push Require Action From Costco Investors
• Positive Sentiment: Analysts and commentators continue to point to Costco’s competitive advantages, including strong member loyalty, high renewal rates and a differentiated value proposition. Those factors support long-term growth, though investors are already paying a substantial premium for them. Costco Stock’s Long-Term Upside Could Come From These 3 Competitive Advantages
• Neutral Sentiment: Costco recently advanced even as the broader market declined, indicating relative investor strength, but the report offers no new fundamental catalyst. Costco Ascends While Market Falls
• Negative Sentiment: Some customers are criticizing Costco’s food-court experience. While unlikely to materially affect near-term earnings, persistent complaints could modestly weigh on member satisfaction and the company’s value-focused brand. Costco faces major food court complaints

Analysts Set New Price Targets

Several research firms have issued reports on COST. Jefferies Financial Group cut their price objective on Costco Wholesale from $1,130.00 to $1,100.00 in a research report on Friday, September 25th. BMO Capital Markets reissued an “outperform” rating on shares of Costco Wholesale in a report on Friday, September 25th. Roth Capital restated a “sell” rating and issued a $781.00 price target on shares of Costco Wholesale in a report on Friday, September 25th. TD Cowen reiterated a “buy” rating on shares of Costco Wholesale in a research report on Friday, September 25th. Finally, Royal Bank Of Canada reissued a “sector perform” rating and set a $1,000.00 price objective on shares of Costco Wholesale in a research note on Friday, October 9th. Twenty-five research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $1,086.19.

Costco Wholesale Stock Up 1.6%

The stock has a market capitalization of $448.57 billion, a price-to-earnings ratio of 48.76, a PEG ratio of 4.20 and a beta of 0.88. The firm’s fifty day moving average is $941.73 and its 200-day moving average is $969.91. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping the consensus estimate of $6.54 by $0.21. The company had revenue of $95.72 billion during the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter last year, the firm earned $5.87 EPS. On average, sell-side analysts predict that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Costco Wholesale Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be paid a dividend of $1.47 per share. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is currently 28.32%.

Insider Activity at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the transaction, the executive vice president directly owned 7,134 shares in the company, valued at approximately $6,534,244.62. The trade was a 23.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the firm’s stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total value of $1,054,031.00. Following the sale, the executive vice president owned 3,094 shares of the company’s stock, valued at $2,964,701.74. The trade was a 26.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Costco Wholesale

A number of hedge funds have recently added to or reduced their stakes in COST. State Street Corp grew its position in Costco Wholesale by 31.7% in 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 acquiring an additional 773,651 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Costco Wholesale by 5.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,068,312 shares of the retailer’s stock valued at $2,870,314,000 after purchasing an additional 160,893 shares during the period. Amundi boosted its stake in Costco Wholesale by 11.1% during the first quarter. Amundi now owns 2,839,016 shares of the retailer’s stock worth $2,828,881,000 after buying an additional 283,360 shares in the last quarter. Finally, Legal & General Group Plc bought a new stake in Costco Wholesale in the 2nd quarter valued at $2,362,188,000. Institutional investors and hedge funds own 68.48% of the company’s stock.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.