Costco Wholesale (NASDAQ:COST) Shares Up 1.3% – Time to Buy?

Costco Wholesale Corporation (NASDAQ:COST)’s share price traded up 1.3% during trading on Tuesday . The company traded as high as $998.88 and last traded at $998.43. 1,646,968 shares were traded during mid-day trading, a decline of 34% from the average session volume of 2,500,733 shares. The stock had previously closed at $986.02.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Broad-based comparable sales gains across the U.S., Canada and internationally — driven by traffic, ticket growth and digital strength — support near-term revenue momentum. Why Costco’s Comparable Sales Strength Looks Broad-Based Globally
• Positive Sentiment: Costco expanded distribution of Levels Whey Protein into additional regions, reinforcing its health-and-wellness assortment and potential to boost category sales and membership value. Costco Expands Levels Whey Protein As Valuation And Membership Story Evolves
• Positive Sentiment: A new double-chocolate mint sundae became a shopper favorite, a small but visible indicator of customer engagement and same-store traffic. Costco’s new sundae becomes sweet sensation with shoppers
• Neutral Sentiment: Analysts collectively maintain a modestly positive view — the street rates Costco around “Moderate Buy,” which supports the stock but leaves limited upside without earnings acceleration. Costco Given Average Rating of “Moderate Buy” by Analysts
• Neutral Sentiment: Costco is drawing heightened investor attention and search interest, which can amplify moves but doesn’t change fundamentals by itself. Investors Heavily Search Costco Wholesale Corporation (COST): Here is What You Need to Know
• Neutral Sentiment: Over the past year COST has underperformed the S&P 500, prompting cautious analyst commentary even as underlying trends remain positive. Is Costco Wholesale Stock Underperforming the S&P 500?
• Negative Sentiment: Multiple articles and analysts flag Costco’s high valuation (P/E in the 50s) as the primary risk — investors are debating whether future growth justifies the premium. Costco: Fantastic Company, Unreasonable Valuation
• Negative Sentiment: Commentary warns the stock may be “getting ahead of itself” after a strong January sales report and a ~15% YTD run, raising pullback risk if growth slows. Costco Stock Is Soaring, but Is It Getting Ahead of Itself?
• Negative Sentiment: Costco faces a new lawsuit over its rotisserie chicken, introducing potential legal costs and reputational noise (likely small but uncertain). Costco faces yet another lawsuit over its rotisserie chicken

Wall Street Analyst Weigh In

A number of research firms recently issued reports on COST. Rothschild & Co Redburn lifted their price target on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the company a “neutral” rating in a research note on Tuesday, February 17th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Costco Wholesale in a report on Monday, December 29th. Roth Mkm reissued a “sell” rating on shares of Costco Wholesale in a research note on Wednesday, February 4th. DA Davidson restated a “neutral” rating and set a $1,000.00 price target on shares of Costco Wholesale in a research report on Thursday, February 5th. Finally, Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a report on Monday, December 22nd. Twenty-one research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $1,008.07.

Costco Wholesale Price Performance

The firm has a market capitalization of $443.04 billion, a PE ratio of 53.46, a price-to-earnings-growth ratio of 5.20 and a beta of 1.01. The stock’s 50 day simple moving average is $937.07 and its two-hundred day simple moving average is $934.29. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.53 and a current ratio of 1.04.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings results on Thursday, December 11th. The retailer reported $4.34 EPS for the quarter, beating the consensus estimate of $4.27 by $0.07. Costco Wholesale had a return on equity of 29.35% and a net margin of 2.96%.The firm had revenue of $67.31 billion during the quarter, compared to analysts’ expectations of $67.03 billion. During the same quarter last year, the firm earned $4.04 earnings per share. The business’s revenue for the quarter was up 8.3% on a year-over-year basis. On average, sell-side analysts forecast that Costco Wholesale Corporation will post 18.03 EPS for the current year.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Friday, January 30th were issued a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Friday, January 30th. Costco Wholesale’s payout ratio is currently 27.85%.

Insider Activity

In other news, EVP James C. Klauer sold 1,500 shares of the stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $939.00, for a total value of $1,408,500.00. Following the completion of the sale, the executive vice president owned 44,837 shares of the company’s stock, valued at $42,101,943. This represents a 3.24% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Russell D. Miller sold 1,500 shares of the firm’s stock in a transaction that occurred 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 sale, the executive vice president owned 8,240 shares of the company’s stock, valued at $7,550,476.80. This represents a 15.40% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 6,915 shares of company stock worth $6,317,097. Insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Ketron Financial purchased a new position in Costco Wholesale during the 4th quarter valued at about $251,000. Astoria Portfolio Advisors LLC. lifted its holdings in Costco Wholesale by 55.9% during the 4th quarter. Astoria Portfolio Advisors LLC. now owns 1,522 shares of the retailer’s stock worth $1,312,000 after buying an additional 546 shares in the last quarter. SG Trading Solutions LLC purchased a new position in Costco Wholesale in the 4th quarter valued at approximately $2,536,000. Pacer Advisors Inc. grew its stake in shares of Costco Wholesale by 11.1% in the fourth quarter. Pacer Advisors Inc. now owns 74,067 shares of the retailer’s stock worth $63,871,000 after acquiring an additional 7,380 shares in the last quarter. Finally, Nolet Wealth Management LLC acquired a new position in shares of Costco Wholesale in the fourth quarter worth $832,000. Institutional investors and hedge funds own 68.48% of the company’s stock.

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.