Costco Wholesale (NASDAQ:COST) Shares Up 1.7% – Should You Buy?

Costco Wholesale Corporation (NASDAQ:COST) shot up 1.7% on Tuesday . The stock traded as high as $1,096.50 and last traded at $1,094.32. 2,610,586 shares changed hands during trading, an increase of 25% from the average session volume of 2,095,572 shares. The stock had previously closed at $1,076.47.

Costco Wholesale News Roundup

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

• Positive Sentiment: Analysts remain constructive on Costco heading into its Q3 update, with UBS raising its price target and reiterating a buy rating, citing expectations for another solid quarter and continued membership-driven resilience.
• Positive Sentiment: Several reports highlighted Costco’s strong 2026 run, including fresh all-time highs, continued expansion, and investor interest in the stock as a high-quality defensive retailer with steady renewal trends.
• Neutral Sentiment: Upcoming holiday trading hours and broader market comments are not company-specific, but they keep Costco in a generally supportive market backdrop as the Nasdaq and S&P 500 remain near record levels. Stock Market To Close For Memorial Day. Here Are Wall Street’s Holiday Hours.
• Neutral Sentiment: Costco remains a focal point for traders ahead of earnings, with preview pieces suggesting expectations are already elevated and that the company may need only steady results, not a blowout, to support the stock. Costco Q3 Earnings Preview: Great Business With Limited Upside
• Negative Sentiment: Costco is falling largely in sympathy with Walmart after Walmart’s earnings and guidance disappointed investors, raising concerns that consumer spending is more pressured than expected and dragging on other big-box retailers. Costco Stock Dips After Walmart’s Q1 Report: What’s Going On?
• Negative Sentiment: Broader articles also point to Costco’s rich valuation and high expectations ahead of earnings, which could limit upside if the company merely meets forecasts rather than significantly beats them.

Analysts Set New Price Targets

Several research firms have recently weighed in on COST. Telsey Advisory Group raised their price objective on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an “outperform” rating in a report on Thursday, April 9th. Weiss Ratings raised shares of Costco Wholesale from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, March 17th. Raymond James Financial raised their price objective on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an “outperform” rating in a report on Friday, March 6th. Roth Mkm reaffirmed a “sell” rating on shares of Costco Wholesale in a report on Wednesday, February 4th. Finally, BMO Capital Markets raised their price objective on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an “outperform” rating in a report on Friday, March 6th. Twenty-two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $1,052.60.

Costco Wholesale Stock Performance

The company has a market capitalization of $466.03 billion, a P/E ratio of 54.63, a P/E/G ratio of 5.28 and a beta of 0.92. 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 stock’s 50 day simple moving average is $1,007.14 and its two-hundred day simple moving average is $959.65.

Costco Wholesale (NASDAQ:COST) last announced its earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share for the quarter, topping 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 company had revenue of $69.60 billion during the quarter, compared to the consensus estimate of $68.96 billion. During the same period in the previous year, the firm posted $4.02 earnings per share. The company’s revenue was up 9.2% on a year-over-year basis. As a group, research analysts expect that Costco Wholesale Corporation will post 20.33 earnings per share for the current year.

Costco Wholesale Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were paid a $1.47 dividend. This is a boost from Costco Wholesale’s previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale’s payout ratio is presently 30.58%.

Insider Buying and Selling at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the business’s stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the completion of the transaction, the executive vice president directly owned 6,121 shares of the company’s stock, valued at approximately $6,139,485.42. The trade was a 10.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.10% of the company’s stock.

Hedge Funds Weigh In On Costco Wholesale

Institutional investors have recently modified their holdings of the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of Costco Wholesale during the fourth quarter worth approximately $27,000. Lifetime Wealth Management P.C. bought a new stake in shares of Costco Wholesale during the fourth quarter worth approximately $28,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale during the fourth quarter worth approximately $28,000. Hurley Capital LLC raised its stake in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock worth $31,000 after buying an additional 18 shares during the last quarter. Finally, Entrust Financial LLC bought a new stake in shares of Costco Wholesale during the fourth quarter worth approximately $31,000. 68.48% of the stock is owned by 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.