Shares of Costco Wholesale Corporation (NASDAQ:COST – Get Free Report) have been given an average rating of “Moderate Buy” by the thirty-five research firms that are currently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, twelve have issued a hold rating and twenty-two have given a buy rating to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $1,059.0667.
Several equities research analysts have commented on the company. HC Wainwright restated a “buy” rating on shares of Costco Wholesale in a research report on Monday, June 1st. Bank of America increased their price target on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Telsey Advisory Group raised their price target on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an “outperform” rating in a research report on Thursday, April 9th. BTIG Research reaffirmed a “buy” rating and issued a $1,125.00 price objective on shares of Costco Wholesale in a report on Friday, May 29th. Finally, DA Davidson reiterated a “neutral” rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a research report on Thursday, June 4th.
View Our Latest Stock Report on COST
Costco Wholesale Price Performance
Costco Wholesale (NASDAQ:COST – Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). The company had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period last year, the firm earned $4.28 EPS. Research analysts expect that Costco Wholesale will post 20.42 EPS for the current year.
Costco Wholesale Dividend Announcement
The firm also recently declared a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Friday, July 24th will be paid a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Friday, July 24th. Costco Wholesale’s payout ratio is currently 29.58%.
Key Headlines Impacting Costco Wholesale
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Costco is being highlighted as a relatively safe dividend stock as investors favor companies with resilient demand, recurring membership revenue and a history of profit growth. Its earnings expansion has supported ongoing dividend increases and other capital returns. Why Costco, Verizon, Kroger, and Other Safe Dividend Stocks Are Rising
- Positive Sentiment: Costco’s retail partnership with athlete-backed hydration brand Coco5 could add a new health-and-wellness product to its assortment and introduce the brand to millions of members, although the direct financial impact is likely modest initially. Coco5 Signs Retail Partnership with Costco
- Positive Sentiment: A Florida distribution center is now operating with on-site solar generation and battery storage, potentially reducing exposure to grid costs and disruptions while advancing Costco’s sustainability goals. Costco Is Running a Florida Distribution Center Fully Off the Grid
- Neutral Sentiment: The Federal Reserve kept interest rates at 3.5%–3.75%. Stable rates support predictable financing conditions, but the possibility of future policy changes remains important for Costco’s consumer demand and premium valuation. The Fed Held Rates at 3.5%-3.75%
- Neutral Sentiment: Analyst comparisons with Walmart focus on Costco’s loyal membership base, digital growth and resilient sales, but also emphasize that COST trades at a richer valuation, leaving less room for disappointment. Walmart vs. Costco: Which Retail Stock Has the Stronger Edge?
- Negative Sentiment: Costco agreed to a $14 million settlement over allegations that emails sent to Washington shoppers used misleading subject lines. Costco denies wrongdoing, but the settlement adds legal expense and reputational risk. Costco’s $14 Million Email Settlement
- Negative Sentiment: Costco reportedly exited its relationship with Synergy CHC, a setback for that supplier and a possible indication of assortment or commercial changes, though the direct effect on Costco appears limited. Synergy CHC Faces Major Setback as Costco Exits
- Negative Sentiment: An animal-rights investigation alleges severe mistreatment and biosecurity violations at an organic chicken supplier connected to Costco. The allegations could increase supply-chain scrutiny and reputational risk if substantiated. Investigation Into Costco Chicken Supplier
Insiders Place Their Bets
In related news, Director Kenneth D. Denman sold 885 shares of the company’s stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares of the company’s stock, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.10% of the company’s stock.
Institutional Inflows and Outflows
Large investors have recently made changes to their positions in the business. Beese Fulmer Investment Management Inc. grew its position in shares of Costco Wholesale by 0.5% in the second quarter. Beese Fulmer Investment Management Inc. now owns 31,554 shares of the retailer’s stock valued at $29,518,000 after purchasing an additional 163 shares during the period. Saiph Capital LLC raised its stake in Costco Wholesale by 137.9% in the 2nd quarter. Saiph Capital LLC now owns 1,323 shares of the retailer’s stock valued at $1,238,000 after purchasing an additional 767 shares during the last quarter. Ethic Inc. lifted its holdings in Costco Wholesale by 0.4% in the 2nd quarter. Ethic Inc. now owns 19,930 shares of the retailer’s stock valued at $18,644,000 after purchasing an additional 82 shares in the last quarter. SilverOak Wealth Management LLC boosted its stake in Costco Wholesale by 12.5% during the 2nd quarter. SilverOak Wealth Management LLC now owns 858 shares of the retailer’s stock worth $803,000 after purchasing an additional 95 shares during the last quarter. Finally, Westfuller Advisors LLC raised its position in shares of Costco Wholesale by 27.2% in the second quarter. Westfuller Advisors LLC now owns 1,292 shares of the retailer’s stock valued at $1,208,000 after buying an additional 276 shares during the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.
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.
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