Costco Wholesale Corporation (NASDAQ:COST) Receives $1,059.53 Average PT from Analysts

Shares of Costco Wholesale Corporation (NASDAQ:COST) have received a consensus recommendation of “Moderate Buy” from the thirty-four analysts that are presently covering the company, Marketbeat reports. One analyst has rated the stock with a sell rating, eleven have assigned a hold rating and twenty-two have assigned a buy rating to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $1,059.5333.

Several brokerages have weighed in on COST. Oppenheimer boosted their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an “outperform” rating in a report on Tuesday, May 19th. Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a report on Monday, June 1st. Roth Capital lifted their price objective on Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a research report on Friday, May 29th. Weiss Ratings downgraded Costco Wholesale from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, June 23rd. Finally, The Goldman Sachs Group upped their target price on Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a “buy” rating in a research note on Friday, May 29th.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Medicare expansion creates a new growth opportunity. Costco is partnering with SCAN Group to offer Costco-branded Medicare Advantage and supplemental plans in select states. The initiative targets Costco’s large senior-member base and gives the company exposure to the approximately $600 billion Medicare market without requiring it to become a traditional insurer. Costco to Offer Medicare Plans for Older Adults
• Positive Sentiment: Costco raised its dividend by 13.1%. The increase reinforces the company’s strong cash-generation profile and may improve its appeal to income-oriented investors, although the stock’s high valuation limits its current dividend yield. Costco Just Upped Its Dividend
• Positive Sentiment: Additional monetization opportunities could support long-term growth. Analysts and commentators point to Costco’s retail-media business, AI-powered search capabilities and pharmacy operations as emerging growth engines alongside membership renewals, warehouse expansion and Kirkland Signature products. Costco Is Quietly Building Its Next Big Growth Engine
• Neutral Sentiment: Costco’s relative resilience compared with Walmart highlights its value proposition. Walmart reported weaker U.S. traffic and comparable-sales growth, while Costco was less affected, suggesting its membership model and perceived value may be helping it navigate consumer affordability pressures. Walmart Drops on Slow Same-Store Sales Growth
• Neutral Sentiment: A potential stock split is speculative. Costco shares have appreciated substantially since the prior 2-for-1 split 26 years ago. A future split could improve accessibility and trading liquidity, but it would not change the company’s underlying value or fundamentals. Costco Stock Split Analysis
• Negative Sentiment: Valuation and modest earnings pressure remain risks. Costco trades at a lofty earnings multiple, while its latest quarterly EPS narrowly missed estimates despite revenue exceeding expectations. That premium leaves less room for disappointment if membership growth, margins or consumer spending weaken.
• Negative Sentiment: The Medicare initiative will require execution. Entering a regulated, competitive insurance market could diversify revenue, but the pilot’s limited geographic rollout and potential healthcare-related complexity mean meaningful financial benefits may take time to develop. Costco Enters the Medicare Insurance Market

Insider Activity at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of the company’s stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares of the company’s stock, valued at $4,575,653.55. This represents a 15.62% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Costco Wholesale

Institutional investors have recently bought and sold shares of the stock. Syon Capital LLC boosted its holdings in Costco Wholesale by 7.2% in the second quarter. Syon Capital LLC now owns 8,840 shares of the retailer’s stock valued at $8,270,000 after acquiring an additional 597 shares during the last quarter. Kampmann Melissa S. grew its position in Costco Wholesale by 11.6% during the second quarter. Kampmann Melissa S. now owns 2,076 shares of the retailer’s stock valued at $1,942,000 after acquiring an additional 216 shares during the period. Barlow Wealth Partners LLC increased its stake in Costco Wholesale by 1.0% during the second quarter. Barlow Wealth Partners LLC now owns 35,455 shares of the retailer’s stock worth $33,794,000 after acquiring an additional 345 shares during the last quarter. Lakeshore Financial Planning Inc. increased its stake in Costco Wholesale by 3.5% during the second quarter. Lakeshore Financial Planning Inc. now owns 586 shares of the retailer’s stock worth $549,000 after acquiring an additional 20 shares during the last quarter. Finally, Concurrent Investment Advisors LLC raised its holdings in shares of Costco Wholesale by 15.0% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 22,766 shares of the retailer’s stock worth $21,297,000 after purchasing an additional 2,974 shares during the period. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Stock Performance

Shares of NASDAQ COST opened at $947.74 on Monday. The company has a 50-day simple moving average of $947.14 and a 200-day simple moving average of $980.95. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The company has a market cap of $420.30 billion, a PE ratio of 47.67, a price-to-earnings-growth ratio of 4.44 and a beta of 0.87. Costco Wholesale has a 12 month low of $844.06 and a 12 month high of $1,096.50.

Costco Wholesale (NASDAQ:COST) last announced 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). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The firm had revenue of $70.53 billion for the quarter, compared to analysts’ expectations of $70.12 billion. During the same period in the previous year, the company posted $4.28 EPS. On average, equities analysts anticipate that Costco Wholesale will post 20.42 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were issued a $1.47 dividend. The ex-dividend date was Friday, July 24th. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale’s payout ratio is 29.58%.

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.