Costco Wholesale (NASDAQ:COST) Trading Up 2.9% – Still a Buy?

Costco Wholesale Corporation (NASDAQ:COST) was up 2.9% during mid-day trading on Thursday . The company traded as high as $952.64 and last traded at $951.67. 2,759,650 shares traded hands during trading, an increase of 23% from the average daily volume of 2,242,780 shares. The stock had previously closed at $924.67.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Costco is expanding its footprint with several new warehouse openings and planned locations across the U.S., which could support membership growth and future revenue. Costco to Open New Stores Across the U.S.: Full List of Locations
• Positive Sentiment: New store approvals in California and other regions suggest Costco’s growth runway remains intact, even if some local residents are pushing back. New Costco approved in California, but some locals say location is ‘unnecessary’
• Positive Sentiment: Costco began alcohol sales at a Pennsylvania store, another example of incremental in-store offerings that can increase traffic and basket size. Costco Wholesale begins alcohol sales at Pennsylvania store
• Neutral Sentiment: Articles on a possible special dividend and a potential stock split are mostly speculative; they may interest shareholders, but they do not appear to be the main near-term driver of the stock. Will Costco Pay a Special Dividend in 2026? Here’s What History Says.
• Neutral Sentiment: Analysts and commentators continue to debate Costco’s valuation, noting strong long-term returns but also that the stock looks expensive on earnings, which can cap upside. Costco (COST) Stock Looks Strong On Returns But Expensive On Earnings
• Negative Sentiment: One recent analysis said Costco’s growth engine may be losing momentum as lower fuel prices could reduce a key traffic driver and create execution risk for the stock. Costco’s secret growth engine may be running out of gas
• Negative Sentiment: Another report highlighted that Costco has underperformed the broader market over the past three months, reflecting investor concern about its premium valuation. Why Costco Stock (COST) Underperformed the S&P 500 Over the Past 3 Months

Wall Street Analyst Weigh In

COST has been the topic of several research reports. BMO Capital Markets upped their price target on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an “outperform” rating in a research report on Friday, March 6th. Deutsche Bank Aktiengesellschaft upped their target price on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. UBS Group boosted their price objective on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a research report on Wednesday, May 20th. Mizuho set a $1,100.00 target price on Costco Wholesale in a research note on Monday, June 1st. Finally, Citigroup assumed coverage on shares of Costco Wholesale in a report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 target price on the stock. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $1,061.45.

Costco Wholesale Price Performance

The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The firm’s 50 day simple moving average is $990.38 and its two-hundred day simple moving average is $972.57. The firm has a market cap of $422.05 billion, a price-to-earnings ratio of 47.87, a PEG ratio of 4.61 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings results 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 return on equity of 28.04% and a net margin of 3.01%.The firm had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same quarter in the prior year, the business posted $4.28 EPS. On average, equities analysts forecast that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were issued a $1.47 dividend. This is a boost from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is 29.58%.

Insider Buying and Selling

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the business’s stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the sale, the director directly owned 4,779 shares of the company’s stock, valued at $4,575,653.55. The trade was a 15.62% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Costco Wholesale

A number of institutional investors have recently bought and sold shares of COST. MassMutual Private Wealth & Trust FSB boosted its holdings in shares of Costco Wholesale by 0.5% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 15,898 shares of the retailer’s stock worth $14,872,000 after buying an additional 79 shares in the last quarter. KERR FINANCIAL PLANNING Corp raised its stake in shares of Costco Wholesale by 5.5% in the second quarter. KERR FINANCIAL PLANNING Corp now owns 579 shares of the retailer’s stock worth $541,000 after purchasing an additional 30 shares during the last quarter. First County Bank CT raised its position in Costco Wholesale by 0.5% in the 2nd quarter. First County Bank CT now owns 2,959 shares of the retailer’s stock valued at $2,768,000 after buying an additional 14 shares during the last quarter. Miller Global Investments LLC lifted its position in shares of Costco Wholesale by 32.4% during the second quarter. Miller Global Investments LLC now owns 135 shares of the retailer’s stock valued at $126,000 after purchasing an additional 33 shares in the last quarter. Finally, First Financial Bank Trust Division grew its stake in Costco Wholesale by 5.5% in the 2nd quarter. First Financial Bank Trust Division now owns 362 shares of the retailer’s stock valued at $339,000 after purchasing an additional 19 shares during the period. Institutional investors own 68.48% of the company’s stock.

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.