Costco Wholesale (NASDAQ:COST) Trading Up 1.8% – Should You Buy?

Costco Wholesale Corporation (NASDAQ:COST) shares rose 1.8% on Monday . The company traded as high as $956.61 and last traded at $951.58. Approximately 2,108,553 shares changed hands during mid-day trading, a decline of 6% from the average session volume of 2,235,935 shares. The stock had previously closed at $935.03.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Kirkland Signature is emerging as a major growth engine. New products, attractive pricing and reported savings of roughly 15% to 20% are strengthening customer loyalty, differentiating Costco from competitors and potentially supporting margins and sales growth. Costco’s Kirkland Brand Is Becoming a Powerful Growth Engine
• Positive Sentiment: Wall Street expects double-digit EPS growth in fiscal fourth-quarter results. Anticipation ahead of the upcoming earnings report may support the stock, particularly after Costco’s latest quarter produced revenue above consensus despite a slight earnings-per-share miss. What to Expect From Costco Wholesale’s Q4 2026 Earnings Report
• Positive Sentiment: Record back-to-school spending could benefit Costco. Forecast retail spending of $146.8 billion, combined with shoppers’ focus on value, may favor Costco’s bulk offerings and low-price positioning. Back to School Spending Expected to Set Records as Shoppers Hunt for Bargains
• Neutral Sentiment: Costco’s electronics trade-in program, which provides gift cards for eligible used technology, could increase member engagement but is unlikely to materially affect near-term financial results. Costco will take your old tech and gift you a gift card
• Negative Sentiment: Competitive pressure is growing in gasoline. A 7-Eleven fuel discount could challenge one of Costco’s key traffic and value advantages as elevated gas prices pressure household budgets. 7-Eleven has a gas discount that challenges Costco
• Negative Sentiment: Coverage of a $14 million email-promotion settlement and a lawsuit alleging heavy metals in Orgain protein powder may create reputational and legal-cost concerns, although the direct financial impact appears limited relative to Costco’s size. Costco Customers Could Claim Cash From $14 Million Settlement

Analysts Set New Price Targets

COST has been the topic of several research analyst reports. BTIG Research reiterated a “buy” rating and set a $1,125.00 price target on shares of Costco Wholesale in a research report on Friday, May 29th. Citigroup initiated coverage on Costco Wholesale in a research note on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 target price for the company. Mizuho set a $1,100.00 target price on Costco Wholesale in a report on Monday, June 1st. Roth Capital boosted their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a research report on Friday, May 29th. Finally, UBS Group upped their price target on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a report on Wednesday, May 20th. Twenty-two analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $1,059.07.

Costco Wholesale Price Performance

The company has a fifty day simple moving average of $965.91 and a 200-day simple moving average of $980.66. The company has a market cap of $422.01 billion, a P/E ratio of 47.87, a PEG ratio of 4.52 and a beta of 0.88. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing the consensus estimate of $4.94 by ($0.01). The company had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same period in the prior year, the business earned $4.28 earnings per share. On average, sell-side analysts predict that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Friday, July 24th will be given a $1.47 dividend. The ex-dividend date is Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is 29.58%.

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the business’s stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the sale, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Palisade Asset Management LLC boosted its stake in Costco Wholesale by 1.4% in the 4th quarter. Palisade Asset Management LLC now owns 702 shares of the retailer’s stock worth $605,000 after purchasing an additional 10 shares during the period. Graybill Wealth Management LTD. grew its position in Costco Wholesale by 0.3% during the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer’s stock worth $2,754,000 after purchasing an additional 10 shares in the last quarter. Wealth Effects LLC raised its stake in Costco Wholesale by 1.2% during the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer’s stock valued at $871,000 after purchasing an additional 10 shares during the period. Folger Nolan Fleming Douglas Capital Management Inc. lifted its holdings in shares of Costco Wholesale by 1.8% in the first quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer’s stock valued at $549,000 after purchasing an additional 10 shares in the last quarter. Finally, First National Bank of Hutchinson lifted its holdings in shares of Costco Wholesale by 0.9% in the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer’s stock valued at $1,094,000 after purchasing an additional 10 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other 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.