Costco Wholesale’s (COST) Outperform Rating Reiterated at Telsey Advisory Group

Telsey Advisory Group reissued their outperform rating on shares of Costco Wholesale (NASDAQ:COST) in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a $1,100.00 price target on the retailer’s stock.

Other equities analysts also recently issued research reports about the stock. The Goldman Sachs Group cut their price target on shares of Costco Wholesale from $1,218.00 to $1,171.00 and set a “buy” rating on the stock in a research note on Friday, December 12th. Deutsche Bank Aktiengesellschaft set a $1,044.00 price objective on Costco Wholesale in a report on Thursday, January 8th. UBS Group reaffirmed a “buy” rating on shares of Costco Wholesale in a research report on Friday, December 12th. Northcoast Research set a $1,100.00 price target on Costco Wholesale and gave the company a “buy” rating in a research report on Wednesday, December 24th. Finally, BTIG Research started coverage on Costco Wholesale in a research note on Tuesday, October 14th. They set a “buy” rating and a $1,115.00 price target for the company. Twenty-one equities research 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 currently has a consensus rating of “Moderate Buy” and a consensus target price of $998.50.

Costco Wholesale Stock Up 0.0%

COST stock opened at $978.33 on Monday. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.04 and a quick ratio of 0.53. The company’s 50 day simple moving average is $911.22 and its 200-day simple moving average is $929.80. Costco Wholesale has a 12 month low of $844.06 and a 12 month high of $1,078.23. The firm has a market capitalization of $434.25 billion, a PE ratio of 52.40, a P/E/G ratio of 5.85 and a beta of 1.01.

Costco Wholesale (NASDAQ:COST) last posted its earnings results on Thursday, December 11th. The retailer reported $4.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.27 by $0.07. The firm had revenue of $67.31 billion for the quarter, compared to analyst estimates of $67.03 billion. Costco Wholesale had a return on equity of 29.35% and a net margin of 2.96%.Costco Wholesale’s revenue was up 8.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $4.04 EPS. Equities analysts expect that Costco Wholesale will post 18.03 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 13th. Shareholders of record on Friday, January 30th will be given a $1.30 dividend. The ex-dividend date of this dividend is Friday, January 30th. This represents a $5.20 annualized dividend and a yield of 0.5%. Costco Wholesale’s dividend payout ratio (DPR) is 27.85%.

Insider Activity at Costco Wholesale

In related news, EVP James C. Klauer sold 1,500 shares of Costco Wholesale stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $939.00, for a total transaction of $1,408,500.00. Following the sale, the executive vice president owned 44,837 shares of the company’s stock, valued at $42,101,943. The trade was a 3.24% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Russell D. Miller sold 1,500 shares of the business’s stock in a transaction on Friday, January 9th. The stock was sold at an average price of $916.32, for a total transaction of $1,374,480.00. Following the completion of the transaction, the executive vice president owned 8,240 shares in the company, valued at $7,550,476.80. This represents a 15.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 9,315 shares of company stock valued at $8,549,409. 0.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Costco Wholesale

Several large investors have recently modified their holdings of the business. Moneco Advisors LLC grew its holdings in Costco Wholesale by 1.4% during the 4th quarter. Moneco Advisors LLC now owns 2,610 shares of the retailer’s stock worth $2,251,000 after acquiring an additional 36 shares in the last quarter. Strategic Family Wealth Counselors L.L.C. lifted its position in shares of Costco Wholesale by 54.2% during the fourth quarter. Strategic Family Wealth Counselors L.L.C. now owns 1,297 shares of the retailer’s stock worth $1,118,000 after purchasing an additional 456 shares during the last quarter. Biltmore Family Office LLC grew its stake in Costco Wholesale by 6.5% in the fourth quarter. Biltmore Family Office LLC now owns 1,471 shares of the retailer’s stock worth $1,269,000 after purchasing an additional 90 shares in the last quarter. Stonebridge Financial Group LLC MO acquired a new position in Costco Wholesale in the fourth quarter worth about $490,000. Finally, Global Wealth Management Investment Advisory Inc. increased its holdings in Costco Wholesale by 4.6% in the fourth quarter. Global Wealth Management Investment Advisory Inc. now owns 4,533 shares of the retailer’s stock valued at $3,909,000 after buying an additional 199 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: January sales beat expectations — Costco reported retail month net sales of $21.33 billion for January, up 9.3% year-over-year, supporting growth momentum and underlying cash flow visibility. Costco Wholesale Corporation Reports January Sales Results
• Positive Sentiment: Digital and comp strength highlighted — reporting and media coverage emphasize Costco outpaced broad retail sales in January and that its digital business performed well, a near-term growth trigger for investors. Costco outpaces broad retail sales in January as its digital business shines
• Positive Sentiment: Membership revenue strength — analysts note membership fee growth (reported ~14% jump in Q1 FY26) and steady renewal behavior that supports predictable recurring revenue and margins. Costco’s Membership Model Continues to Deliver Predictable Growth
• Positive Sentiment: Exceptional renewal rates — coverage highlights a ~92% renewal rate in the U.S. & Canada (≈89.8% worldwide), reinforcing the durability of Costco’s membership “moat.” Nine Out of Ten Costco Members Renew
• Positive Sentiment: Analyst support — Gordon Haskett raised its price target to $1,100, giving upside room from current levels; Telsey reaffirmed an Outperform rating, which can support buyer interest. Gordon Haskett adjusts price target on Costco
• Neutral Sentiment: Valuation debate persists — pieces are probing whether Costco’s high P/E is justified after multi-year share gains and membership strength; this keeps valuation a focal point for longer-term investors. Is Costco Wholesale (COST) Pricing Reflect Lofty P/E
• Neutral Sentiment: Macro/sector context — coverage (e.g., Barron’s) notes staples stocks look frothy vs. their historical safety role, which can temper momentum if market risk appetite shifts. Staples Stocks Are Known for Safety. Now They Look Way Too Frothy.
• Negative Sentiment: Product recalls for bakery items — Costco has recalled beignets/mini-beignets and other pastries due to packaging mix-ups and undeclared nuts/allergen risks across multiple states, creating potential reputational and operational headaches for the foodservice side. Costco recall beignets
• Negative Sentiment: Labeling lawsuit — a suit challenges Costco’s “no preservatives” claim on rotisserie chicken, which could increase legal/PR risk and potential liability if the case gains traction. Lawsuit challenges Costco’s ‘no preservatives’ labeling

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.