Costco Wholesale (NASDAQ:COST) Trading 1.3% Higher – Still a Buy?

Shares of Costco Wholesale Corporation (NASDAQ:COST) were up 1.3% on Thursday . The stock traded as high as $962.58 and last traded at $961.85. 1,310,670 shares traded hands during mid-day trading, a decline of 41% from the average daily volume of 2,210,705 shares. The stock had previously closed at $949.58.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Market-share gains in Canada: Costco is now Canada’s second-largest grocery store chain, indicating continued customer adoption and potential for international growth. Costco Wholesale Is Now Canada’s Second Largest Grocery Store Chain
• Positive Sentiment: Resilient value proposition: Analysts continue to highlight Costco’s ability to attract and retain members through low prices, including inexpensive gasoline. This value positioning could support demand as consumers remain selective. Retail Stocks Poised for an Earnings Beat
• Positive Sentiment: Expansion remains a growth driver: Seven additional U.S. locations are planned for 2026, adding warehouse capacity and supporting membership and sales growth over time. Seven New Costco Locations Coming in 2026
• Neutral Sentiment: Tariff-refund uncertainty: Costco says it will return tariff-related refunds to customers, but the timing and mechanics remain unclear. The policy may reinforce customer goodwill, although refunds could create temporary administrative and cash-flow considerations. Costco Tariff Refunds
• Neutral Sentiment: Operational and competitive updates: Costco will close U.S. warehouses on September 7 for Labor Day, while rival BJ’s continues expanding. These developments are unlikely to materially change near-term earnings but highlight ongoing competitive dynamics. Costco Labor Day Closure
• Negative Sentiment: Valuation remains a concern: Despite a recent pullback, Costco’s roughly 48-times P/E ratio leaves limited room for execution misses. Moderating sales growth and potential margin pressure could keep investors cautious, particularly after the latest quarter narrowly missed EPS expectations. Is Costco Stock Worth Buying Now or Still Too Pricey to Touch?

Wall Street Analyst Weigh In

Several research firms have commented on COST. TD Cowen restated a “buy” rating and set a $1,175.00 price target on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Citigroup initiated coverage on shares of Costco Wholesale in a report on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price objective for the company. Weiss Ratings lowered shares of Costco Wholesale from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, June 23rd. HC Wainwright reissued a “buy” rating on shares of Costco Wholesale in a report on Monday, June 1st. Finally, Bank of America boosted their target price on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Costco Wholesale presently has an average rating of “Moderate Buy” and an average price target of $1,059.53.

Costco Wholesale Price Performance

The company has a fifty day simple moving average of $949.77 and a 200-day simple moving average of $981.29. The company has a market cap of $426.21 billion, a P/E ratio of 48.34, a PEG ratio of 4.58 and a beta of 0.87. 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 was paid on Friday, August 7th. Investors of record on Friday, July 24th were given a $1.47 dividend. The ex-dividend date was 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. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in Costco Wholesale during the 4th quarter valued at $27,000. Lifetime Wealth Management P.C. acquired a new stake in shares of Costco Wholesale in the fourth quarter worth $28,000. C M Bidwell & Associates Ltd. purchased a new position in shares of Costco Wholesale during the second quarter valued at $28,000. Mcguire Capital Advisors Inc. purchased a new position in shares of Costco Wholesale during the fourth quarter valued at $28,000. Finally, Burk Holdings LLC acquired a new position in Costco Wholesale during the second quarter valued at $30,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

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.