Costco Wholesale (NASDAQ:COST) Stock Price Up 1.8% – Should You Buy?

Costco Wholesale Corporation (NASDAQ:COST)’s stock price was up 1.8% during trading on Monday . The company traded as high as $956.61 and last traded at $951.58. Approximately 2,108,553 shares traded hands during trading, a decline of 6% from the average session volume of 2,235,935 shares. The stock had previously closed at $935.03.

Key Costco Wholesale News

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

• Positive Sentiment: Costco is benefiting from renewed investor interest in “safe” dividend stocks, alongside companies such as Verizon and Kroger. This defensive rotation may support COST, particularly given its resilient membership-based business model. Why Costco, Verizon, Kroger, and Other Safe Dividend Stocks Are Rising
• Positive Sentiment: Analysts and financial commentators continue to highlight Costco’s Kirkland Signature private label as a growth engine. Its lower-priced products, expanding assortment and reported 15%–20% customer savings can strengthen loyalty, differentiate Costco and support long-term margins and sales. Costco’s Kirkland Brand Is Becoming a Powerful Growth Engine
• Positive Sentiment: Costco has begun operating its Port St. Lucie, Florida distribution center using an on-site solar-and-battery system. The project could reduce exposure to grid disruptions and energy costs while advancing the company’s sustainability goals, although the near-term earnings effect is likely limited. Breaking Free from the Grid, Costco Teams with Trinity Energy to Pioneer True Commercial Energy Independence
• Neutral Sentiment: Costco’s recent free water-sampling promotion was described by retail experts as an effective strategy to increase engagement and encourage purchases, but it is unlikely to materially affect near-term stock performance. Costco Offered Shoppers Free Samples of Water
• Negative Sentiment: Costco agreed to a $14 million settlement over claims that emails sent to Washington shoppers used misleading subject lines. Costco denies wrongdoing, and eligible customers may receive up to $500, but the case creates modest legal, compliance and reputational risks. Claims must reportedly be filed by August 24. Costco’s $14 Million Email Settlement
• Negative Sentiment: An animal-rights investigation alleged severe cruelty, organic-certification violations and biosecurity failures at an organic chicken supplier serving Costco. A legal complaint has been filed; the allegations could lead to reputational damage, supplier scrutiny or regulatory costs, though no financial impact has been established. Baby Chicks Buried Alive at Costco Chicken Supplier

Wall Street Analyst Weigh In

Several research firms recently weighed in on COST. Citigroup began coverage on shares of Costco Wholesale in a research note on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 price objective on the stock. Wells Fargo & Company increased their target price on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 9th. TD Cowen restated a “buy” rating and set a $1,175.00 price target on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Finally, Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Twenty-two 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 stock. According to data from MarketBeat.com, Costco Wholesale currently has a consensus rating of “Moderate Buy” and an average target price of $1,059.07.

Costco Wholesale Stock Performance

The firm has a fifty day simple moving average of $960.85 and a 200 day simple moving average of $981.69. 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 $433.45 billion, a price-to-earnings ratio of 49.16, a P/E/G ratio of 4.60 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST) last announced its earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). The firm had revenue of $70.53 billion during the quarter, compared to the consensus estimate 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 last year, the business earned $4.28 EPS. On average, sell-side analysts expect that Costco Wholesale Corporation will post 20.42 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

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

Insider Activity at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction that occurred 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 sale, the director owned 4,779 shares of the company’s stock, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

Hedge funds have recently added to or reduced their stakes in the stock. Diamant Asset Management Inc. lifted its stake in shares of Costco Wholesale by 99,278.0% during the first 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 acquired a new stake in shares of Costco Wholesale during the fourth quarter worth $5,195,415,000. Corient Private Wealth LLC increased its holdings in Costco Wholesale by 838.9% in the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock valued at $5,282,182,000 after purchasing an additional 5,472,968 shares during the last quarter. Ascentis Wealth Management LLC lifted its stake in Costco Wholesale by 103,637.0% in the second quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer’s stock valued at $2,549,616,000 after buying an additional 2,497,652 shares during the period. Finally, Cardano Risk Management B.V. boosted its holdings in Costco Wholesale by 907.1% during the fourth quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer’s stock worth $1,539,346,000 after buying an additional 1,607,833 shares during the last quarter. Institutional investors 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.