Costco Wholesale (NASDAQ:COST) Stock Price Up 2.6% – Time to Buy?

Costco Wholesale Corporation (NASDAQ:COST) was up 2.6% during mid-day trading on Monday . The stock traded as high as $1,079.83 and last traded at $1,076.47. Approximately 2,177,039 shares traded hands during trading, an increase of 4% from the average daily volume of 2,088,806 shares. The stock had previously closed at $1,048.95.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco raised its quarterly dividend by 13% to $1.47 per share, a signal of confidence in cash flow that can attract income-focused investors. Costco (COST) Surges to New 52-Week Peak Following Strong Dividend Boost
• Positive Sentiment: April sales remained strong, with 11.6% comparable sales growth and 18.8% digital growth, reinforcing Costco’s reputation as a defensive retailer benefiting from value-conscious shoppers. Costco’s April Sales Reinforce Its Case as the Ultimate Defensive Stock
• Positive Sentiment: Costco’s expansion of mixsoon into about 500 U.S. warehouse locations highlights continued merchandising strength and successful product launches. Strong U.S. Retail Demand Fuels mixsoon’s Expansion Across Costco’s Global Markets
• Positive Sentiment: Analyst commentary has been upbeat, with multiple pieces highlighting Costco’s resilient growth, strong execution, and potential for a breakout as the stock trades near record levels. Prediction: The Stage is Set for a Costco Stock Breakout
• Neutral Sentiment: One report noted a Florida land purchase for future expansion, which supports long-term growth but is not an immediate earnings catalyst. How Investors Are Reacting To Costco Wholesale (COST) Double-Digit April Sales, Florida Expansion And Jury Verdict
• Neutral Sentiment: There was also a small legal setback tied to a disability discrimination verdict, but the dollar amount reported was modest relative to Costco’s scale. How Investors Are Reacting To Costco Wholesale (COST) Double-Digit April Sales, Florida Expansion And Jury Verdict

Wall Street Analyst Weigh In

COST has been the topic of several analyst reports. Wells Fargo & Company boosted their price objective on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 9th. BTIG Research reaffirmed a “buy” rating and issued a $1,115.00 price objective on shares of Costco Wholesale in a research note on Thursday, March 5th. Deutsche Bank Aktiengesellschaft boosted their target price on 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. Gordon Haskett increased their price target on Costco Wholesale from $1,000.00 to $1,100.00 in a report on Tuesday, February 3rd. Finally, UBS Group set a $1,175.00 price target on Costco Wholesale in a research report on Friday, March 6th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Costco Wholesale currently has a consensus rating of “Moderate Buy” and an average price target of $1,047.27.

Costco Wholesale Stock Performance

The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The business has a 50 day moving average price of $1,000.90 and a 200 day moving average price of $955.24. The stock has a market cap of $477.58 billion, a P/E ratio of 55.98, a PEG ratio of 5.16 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.55 by $0.03. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The firm had revenue of $69.60 billion during the quarter, compared to analyst estimates of $68.96 billion. During the same period last year, the company earned $4.02 EPS. Costco Wholesale’s quarterly revenue was up 9.2% compared to the same quarter last year. As a group, sell-side analysts expect that Costco Wholesale Corporation will post 20.31 EPS for the current year.

Costco Wholesale Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were paid a $1.47 dividend. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 annualized dividend and a yield of 0.5%. This is a boost from Costco Wholesale’s previous quarterly dividend of $1.30. Costco Wholesale’s payout ratio is 30.58%.

Insiders Place Their Bets

In related news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the sale, the executive vice president owned 6,121 shares in the company, valued at $6,139,485.42. This trade represents a 10.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.10% of the stock is owned by insiders.

Institutional Trading of Costco Wholesale

A number of large investors have recently modified their holdings of the company. Diamant Asset Management Inc. grew its position in shares of Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after buying an additional 6,720,130 shares in the last quarter. Norges Bank bought a new stake in shares of Costco Wholesale in the fourth quarter valued at about $5,195,415,000. Corient Private Wealth LLC lifted its stake 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 worth $5,282,182,000 after acquiring an additional 5,472,968 shares during the period. Cardano Risk Management B.V. lifted its stake in 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 worth $1,539,346,000 after acquiring an additional 1,607,833 shares during the period. Finally, Assenagon Asset Management S.A. grew its holdings in Costco Wholesale by 1,586.8% during the 4th quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer’s stock worth $980,857,000 after acquiring an additional 1,070,005 shares in the last quarter. Hedge funds and other institutional investors own 68.48% of the company’s stock.

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.