Costco Wholesale (NASDAQ:COST) Shares Up 2.4% – Still a Buy?

Shares of Costco Wholesale Corporation (NASDAQ:COST) were up 2.4% during mid-day trading on Friday . The stock traded as high as $1,014.19 and last traded at $1,010.79. Approximately 3,898,800 shares traded hands during trading, an increase of 57% from the average daily volume of 2,486,146 shares. The stock had previously closed at $986.74.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Bank of America initiated coverage with a “Buy” and a $1,185 price target, signaling material upside from current levels and lending institutional momentum to the name.
• Positive Sentiment: Analysts highlighted Costco’s resilience in a K-shaped economy — pricing power, loyal executive members and margin durability — supporting the stock’s defensive growth narrative. What’s Going On With Costco Wholesale Stock Today?
• Positive Sentiment: Seeking Alpha published a long-term bullish piece framing Costco’s business model as attractive for buy-and-hold investors, reinforcing the stock’s appeal for portfolio allocation. Costco: A Strong Business Model For Long-Term Investors
• Positive Sentiment: Merchandising and pricing moves — Costco added more national brands and cut prices on select items — which can boost traffic and member perceived value, supporting same-store fundamentals. Costco adds more big brands and lowers prices
• Neutral Sentiment: Costco heads into Q2 with consensus expectations for revenue growth (~+8.6%) and EPS (~+12.7%), which supports the bull case but raises the bar — strong results could be priced in given recent analyst optimism. Should You Buy Costco Stock Ahead of Q2 Earnings Report?
• Neutral Sentiment: Costco is pursuing tariff refund lawsuits (post-Supreme Court rulings) while investing in digital tools and global expansion — potential upside from refunds but also short-term cash/legal uncertainty and capex. How Investors May Respond To Costco Wholesale (COST) Tariff Refund Lawsuits And Digital Expansion Investments
• Negative Sentiment: Operational hiccup: Costco notified Hawaii members of a Yakitori fried rice recall — a localized food-safety issue that could produce modest short-term negative PR and costs. Costco notifies Hawaii members of Yakitori fried rice recall

Analysts Set New Price Targets

Several equities analysts recently commented on COST shares. Bank of America started coverage on Costco Wholesale in a research note on Friday. They issued a “buy” rating and a $1,185.00 target price for the company. BMO Capital Markets restated an “outperform” rating on shares of Costco Wholesale in a report on Friday, December 12th. Roth Mkm reaffirmed a “sell” rating on shares of Costco Wholesale in a research report on Wednesday, February 4th. Telsey Advisory Group reaffirmed an “outperform” rating and set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday, February 2nd. Finally, Mizuho lifted their price target on shares of Costco Wholesale from $1,000.00 to $1,065.00 and gave the stock an “outperform” rating in a research note on Tuesday, February 3rd. Twenty-two investment 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. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $1,014.39.

Costco Wholesale Stock Up 2.4%

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 stock has a market capitalization of $448.66 billion, a price-to-earnings ratio of 54.14, a PEG ratio of 5.24 and a beta of 1.01. The firm’s fifty day moving average is $945.05 and its 200-day moving average is $935.19.

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

Costco Wholesale Dividend Announcement

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

Insider Activity at Costco Wholesale

In related news, EVP Russell D. Miller sold 1,500 shares of the firm’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 transaction, the executive vice president directly owned 8,240 shares in the company, valued at $7,550,476.80. This trade represents a 15.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP James C. Klauer sold 1,500 shares of Costco Wholesale stock in a transaction on Wednesday, January 14th. The stock was sold at an average price of $939.00, for a total transaction of $1,408,500.00. Following the completion of the transaction, the executive vice president directly owned 44,837 shares of the company’s stock, valued at approximately $42,101,943. This represents a 3.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 6,915 shares of company stock worth $6,317,097 over the last quarter. 0.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Palisade Asset Management LLC boosted its stake in Costco Wholesale by 1.4% in the fourth quarter. Palisade Asset Management LLC now owns 702 shares of the retailer’s stock valued at $605,000 after acquiring an additional 10 shares during the period. Graybill Wealth Management LTD. lifted its holdings in shares of Costco Wholesale by 0.3% in the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer’s stock worth $2,754,000 after purchasing an additional 10 shares during the last quarter. Lbmc Investment Advisors LLC boosted its position in Costco Wholesale by 0.5% during the 4th quarter. Lbmc Investment Advisors LLC now owns 2,041 shares of the retailer’s stock valued at $1,760,000 after purchasing an additional 10 shares during the period. Hobbs Wealth Management LLC grew its stake in Costco Wholesale by 4.4% during the 2nd quarter. Hobbs Wealth Management LLC now owns 262 shares of the retailer’s stock worth $259,000 after buying an additional 11 shares during the last quarter. Finally, Busey Bank grew its stake in Costco Wholesale by 0.4% during the 3rd quarter. Busey Bank now owns 2,651 shares of the retailer’s stock worth $2,454,000 after buying an additional 11 shares during the last quarter. 68.48% of the stock is currently owned by 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.