Costco Wholesale (NASDAQ:COST) Trading Up 2.6% – What’s Next?

Costco Wholesale Corporation (NASDAQ:COST)’s stock price traded up 2.6% during mid-day trading on Monday . The company traded as high as $1,079.83 and last traded at $1,076.47. 2,177,039 shares were traded during trading, an increase of 4% from the average session volume of 2,088,806 shares. The stock had previously closed at $1,048.95.

More Costco Wholesale News

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

• Positive Sentiment: UBS raised its price target on Costco to $1,275 from $1,205 and kept a buy rating, reinforcing the view that shares still have upside ahead of the company’s May 28 earnings report. Benzinga UBS price target update
• Positive Sentiment: Analysts remain constructive on Costco into Q3, saying the retailer can post a solid update even without a blowout quarter because membership renewals and traffic trends remain strong. TipRanks analyst outlook
• Positive Sentiment: Higher gasoline prices may be driving more shoppers to Costco’s warehouse clubs and gas stations, which can support foot traffic and fuel-related sales. Benzinga gas price traffic story
• Positive Sentiment: Wall Street commentary continues to highlight Costco as a top long-term, low-risk consumer name, helped by strong execution, rising dividends, and durable membership economics. Yahoo Finance hedge fund article
• Neutral Sentiment: Several articles focused on Costco’s stock topping $1,000 and speculation about a possible split, but there has been no official split announcement, so this is mainly sentiment-driven rather than a fundamental change. Yahoo Finance split speculation
• Neutral Sentiment: Recent food-court and lifestyle coverage, including new menu items and Mediterranean-diet product picks, may help brand engagement but is unlikely to move the stock on its own. TheStreet food court item
• Negative Sentiment: After a six-session winning streak and a rapid run to record highs, some traders are taking profits, which is likely contributing to the recent pullback in Costco shares. MSN stock pullback article

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the company. BMO Capital Markets upped their price target on Costco Wholesale from $1,175.00 to $1,315.00 and gave the company an “outperform” rating in a report on Friday, March 6th. Bank of America assumed coverage on Costco Wholesale in a report on Friday, February 27th. They set a “buy” rating and a $1,185.00 price target on the stock. Mizuho upped their price target on Costco Wholesale from $1,065.00 to $1,100.00 and gave the company an “outperform” rating in a report on Thursday, April 16th. Weiss Ratings raised Costco Wholesale from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, March 17th. Finally, TD Cowen reaffirmed a “buy” rating on shares of Costco Wholesale in a 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 issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $1,052.60.

Costco Wholesale Price Performance

The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. The company has a market capitalization of $476.48 billion, a P/E ratio of 55.85, a price-to-earnings-growth ratio of 5.30 and a beta of 0.92. The firm’s 50-day moving average is $1,004.71 and its 200-day moving average is $957.59.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The firm had revenue of $69.60 billion during the quarter, compared to the consensus estimate of $68.96 billion. During the same quarter in the previous year, the firm posted $4.02 EPS. The company’s revenue for the quarter was up 9.2% compared to the same quarter last year. Analysts predict that Costco Wholesale Corporation will post 20.31 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were given a $1.47 dividend. The ex-dividend date was Friday, May 1st. This is a positive change from Costco Wholesale’s previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a yield of 0.5%. Costco Wholesale’s dividend payout ratio (DPR) is currently 30.58%.

Insider Buying and Selling at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the transaction, the executive vice president directly owned 6,121 shares of the company’s stock, valued at $6,139,485.42. The trade was a 10.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Costco Wholesale

Several institutional investors have recently added to or reduced their stakes in the company. SHUTTLEWORTH & Co grew its holdings in Costco Wholesale by 0.4% during the 1st quarter. SHUTTLEWORTH & Co now owns 2,442 shares of the retailer’s stock valued at $2,433,000 after buying an additional 10 shares in the last quarter. Leigh Baldwin & CO. LLC grew its holdings in Costco Wholesale by 8.2% during the 1st quarter. Leigh Baldwin & CO. LLC now owns 842 shares of the retailer’s stock valued at $839,000 after buying an additional 64 shares in the last quarter. TrueWealth Financial Partners purchased a new position in Costco Wholesale during the 1st quarter valued at approximately $805,000. Western Wealth Management LLC grew its holdings in Costco Wholesale by 21.0% during the 1st quarter. Western Wealth Management LLC now owns 19,195 shares of the retailer’s stock valued at $19,126,000 after buying an additional 3,333 shares in the last quarter. Finally, McIlrath & Eck LLC grew its holdings in Costco Wholesale by 1.0% during the 1st quarter. McIlrath & Eck LLC now owns 6,485 shares of the retailer’s stock valued at $6,462,000 after buying an additional 64 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.