Costco Wholesale (NASDAQ:COST) Shares Up 1.1% – Should You Buy?

Costco Wholesale Corporation (NASDAQ:COST) shares rose 1.1% during trading on Monday . The company traded as high as $930.98 and last traded at $926.43. 2,368,798 shares were traded during trading, an increase of 5% from the average session volume of 2,248,392 shares. The stock had previously closed at $916.25.

More Costco Wholesale News

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

• Positive Sentiment: RBC Capital began coverage on Costco with a Sector Perform rating and a $1,000 price target, calling it one of retail’s best stories and implying upside from current levels. RBC coverage on Costco
• Positive Sentiment: William Blair said Costco is well positioned to handle inflation and uneven consumer spending, reinforcing its reputation as a defensive retailer. Barron’s article on consumer stocks
• Positive Sentiment: Costco announced 7 new warehouse locations opening in August, signaling continued unit expansion and support for long-term revenue growth. Costco announces 7 new warehouse locations
• Positive Sentiment: Jim Cramer reiterated support for Costco, and multiple pieces highlighted the company’s strong brand, membership model, and market share gains. Jim Cramer on Costco
• Neutral Sentiment: Several articles focused on Costco’s dividend appeal and compared it favorably with Walmart, but these were largely informational rather than stock-moving catalysts. Costco dividend article
• Neutral Sentiment: Costco opened its first standalone gas station, which may help traffic and competitiveness, though the broader financial impact is still unclear. Costco standalone gas station
• Negative Sentiment: Investors remain focused on Costco’s premium valuation, with multiple reports questioning whether recent sales growth is enough to justify the stock’s rich multiple. Costco June sales valuation article
• Negative Sentiment: A proposed class-action lawsuit over alleged heavy metals in a protein powder product raises a trust and product-quality risk for the Costco brand. Costco protein powder lawsuit
• Negative Sentiment: One report noted that Costco shares have been under pressure after monthly sales data, adding to concerns about slowing comparable sales momentum. Costco stock buy the dip article

Analysts Set New Price Targets

Several equities analysts have issued reports on the company. 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 research note on Tuesday, May 19th. Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a research note on Monday, June 1st. BTIG Research restated a “buy” rating and set a $1,125.00 price objective on shares of Costco Wholesale in a report on Friday, May 29th. Citigroup initiated coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price target for the company. Finally, HC Wainwright reiterated a “buy” rating on shares of Costco Wholesale in a report on Monday, June 1st. Twenty-two research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,059.07.

Costco Wholesale Stock Performance

The company’s 50-day simple moving average is $980.00 and its 200 day simple moving average is $976.98. 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 stock has a market cap of $408.78 billion, a P/E ratio of 46.37, a PEG ratio of 4.49 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST) last announced its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). The business had revenue of $70.53 billion during the quarter, compared to analysts’ expectations of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same quarter in the previous year, the firm earned $4.28 EPS. As a group, sell-side analysts expect that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

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

Insider Transactions at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of the firm’s stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares of the company’s stock, valued at $4,575,653.55. This trade represents a 15.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Costco Wholesale

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Diamant Asset Management Inc. raised its stake in Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock valued at $672,690,000 after acquiring an additional 6,720,130 shares during the period. Norges Bank purchased a new position in shares of Costco Wholesale in the fourth quarter worth about $5,195,415,000. Corient Private Wealth LLC increased its stake in shares of Costco Wholesale by 838.9% in the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock worth $5,282,182,000 after purchasing an additional 5,472,968 shares in the last quarter. Cardano Risk Management B.V. raised its position in shares of Costco Wholesale by 907.1% in the fourth quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer’s stock valued at $1,539,346,000 after purchasing an additional 1,607,833 shares during the period. Finally, Assenagon Asset Management S.A. raised its position in shares of Costco Wholesale by 1,586.8% in the fourth quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer’s stock valued at $980,857,000 after purchasing an additional 1,070,005 shares during the period. 68.48% of the stock is owned by hedge funds and other institutional investors.

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.