Costco Wholesale (NASDAQ:COST) Releases Quarterly Earnings Results

Costco Wholesale (NASDAQ:COST) announced its earnings results on Thursday. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.98 by ($0.05), FiscalAI reports. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The business had revenue of $70.53 billion for the quarter, compared to analysts’ expectations of $69.68 billion.

Costco Wholesale Stock Down 0.8%

Costco Wholesale stock traded down $8.49 during mid-day trading on Thursday, reaching $995.20. 2,815,054 shares of the company were exchanged, compared to its average volume of 2,114,381. The business has a fifty day moving average of $1,008.29 and a 200 day moving average of $962.02. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The firm has a market cap of $441.52 billion, a P/E ratio of 51.75, a PEG ratio of 4.93 and a beta of 0.92. Costco Wholesale has a 12-month low of $844.06 and a 12-month high of $1,096.50.

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 issued a dividend of $1.47 per share. This is an increase from Costco Wholesale’s previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Friday, May 1st. Costco Wholesale’s dividend payout ratio (DPR) is currently 30.58%.

Analyst Ratings Changes

COST has been the subject of several recent analyst reports. Evercore set a $1,100.00 target price on Costco Wholesale in a research report on Monday, March 2nd. Sanford C. Bernstein restated an “outperform” rating and set a $1,192.00 target price on shares of Costco Wholesale in a research report on Tuesday, May 12th. Truist Financial boosted their price target on Costco Wholesale from $926.00 to $977.00 and gave the company a “hold” rating in a report on Friday, March 6th. TD Cowen reiterated a “buy” rating on shares of Costco Wholesale in a report on Friday, March 6th. Finally, The Goldman Sachs Group lowered their price target on Costco Wholesale from $1,171.00 to $1,088.00 and set a “buy” rating for the company in a report on Friday, March 6th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $1,052.60.

More Costco Wholesale News

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

• Positive Sentiment: Analysts and recent previews point to another solid quarter, with Costco’s monthly sales already showing accelerating momentum and Wall Street expectations calling for continued earnings and revenue growth. Article Title
• Positive Sentiment: Costco continues to be viewed as a defensive retail winner, supported by high membership renewal rates, strong app engagement, and a model that benefits from inflation and higher gas prices drawing shoppers into stores. Article Title
• Positive Sentiment: CEO Ron Vachris said AI is not replacing workers at Costco, but “elevating” them, reinforcing the company’s people-first, service-oriented culture that investors often associate with long-term customer loyalty. Article Title
• Neutral Sentiment: Several previews framed Costco’s earnings as a major test for the consumer and the broader retail sector, but the market appears to be waiting for actual results before making a bigger move. Article Title
• Negative Sentiment: Shares have paused near record levels ahead of earnings, with some commentary saying the stock’s premium valuation makes it vulnerable if results or guidance merely meet expectations instead of beating them. Article Title
• Negative Sentiment: Broader market headlines also showed futures weakening earlier in the day, which can add pressure to a stock already trading with a high bar ahead of earnings. Article Title

Insiders Place Their Bets

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the company’s stock in a transaction on 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 completion of the sale, the executive vice president owned 6,121 shares in the company, valued at $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Costco Wholesale

A number of hedge funds have recently bought and sold shares of the stock. Morgan Stanley lifted its holdings in Costco Wholesale by 1.1% during the fourth quarter. Morgan Stanley now owns 9,523,423 shares of the retailer’s stock worth $8,212,433,000 after buying an additional 107,775 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in Costco Wholesale by 2.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,282,011 shares of the retailer’s stock worth $2,830,209,000 after buying an additional 79,149 shares during the period. Amundi lifted its holdings in Costco Wholesale by 45.0% during the third quarter. Amundi now owns 3,176,606 shares of the retailer’s stock worth $2,893,697,000 after buying an additional 986,182 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of Costco Wholesale by 13.4% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,953,923 shares of the retailer’s stock valued at $1,684,947,000 after purchasing an additional 230,618 shares during the last quarter. Finally, Vestor Capital LLC lifted its holdings in shares of Costco Wholesale by 20,936.6% during the 4th quarter. Vestor Capital LLC now owns 970,840 shares of the retailer’s stock valued at $837,194,000 after purchasing an additional 966,225 shares during 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.