Costco Wholesale Corporation (NASDAQ:COST) Given Consensus Recommendation of “Moderate Buy” by Analysts

Shares of Costco Wholesale Corporation (NASDAQ:COST) have been given a consensus rating of “Moderate Buy” by the thirty-four research firms that are currently covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, eleven have given a hold recommendation and twenty-two have given a buy recommendation to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $1,059.5333.

Several brokerages have weighed in on COST. Sanford C. Bernstein increased their price objective on Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an “outperform” rating in a report on Friday, May 29th. The Goldman Sachs Group boosted their target price on Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a “buy” rating in a research note on Friday, May 29th. Oppenheimer upped their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an “outperform” rating in a research report on Tuesday, May 19th. Weiss Ratings downgraded Costco Wholesale from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, June 23rd. Finally, Mizuho set a $1,100.00 price objective on Costco Wholesale in a report on Monday, June 1st.

Costco Wholesale Price Performance

COST opened at $947.74 on Monday. Costco Wholesale has a twelve month low of $844.06 and a twelve month high of $1,096.50. The company’s 50-day moving average price is $947.14 and its two-hundred day moving average price is $981.04. The stock has a market cap of $420.30 billion, a price-to-earnings ratio of 47.67, a PEG ratio of 4.51 and a beta of 0.87. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). The company had revenue of $70.53 billion for 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 business earned $4.28 EPS. As a group, equities analysts expect that Costco Wholesale will post 20.42 earnings per share for the current year.

Costco Wholesale Announces Dividend

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

Insiders Place Their Bets

In other news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is owned by corporate insiders.

Institutional Trading of Costco Wholesale

A number of institutional investors have recently modified their holdings of COST. Trans Canada Capital Inc. purchased a new position in Costco Wholesale in the 2nd quarter valued at approximately $21,130,000. Washington Trust Advisors Inc. lifted its position in shares of Costco Wholesale by 48.2% during the second quarter. Washington Trust Advisors Inc. now owns 1,218 shares of the retailer’s stock worth $1,139,000 after acquiring an additional 396 shares in the last quarter. Ameritas Advisory Services LLC lifted its position in shares of Costco Wholesale by 55.8% during the second quarter. Ameritas Advisory Services LLC now owns 8,095 shares of the retailer’s stock worth $7,573,000 after acquiring an additional 2,899 shares in the last quarter. Wedmont Private Capital lifted its position in shares of Costco Wholesale by 1.2% during the second quarter. Wedmont Private Capital now owns 6,879 shares of the retailer’s stock worth $6,303,000 after acquiring an additional 80 shares in the last quarter. Finally, Kintra Wealth LLC boosted its holdings in shares of Costco Wholesale by 50.7% in the second quarter. Kintra Wealth LLC now owns 4,382 shares of the retailer’s stock worth $4,215,000 after acquiring an additional 1,474 shares during the period. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Medicare expansion creates a new growth opportunity. Costco is partnering with SCAN Group to offer Costco-branded Medicare Advantage and supplemental plans in select states. The initiative targets Costco’s large senior-member base and gives the company exposure to the approximately $600 billion Medicare market without requiring it to become a traditional insurer. Costco to Offer Medicare Plans for Older Adults
• Positive Sentiment: Costco raised its dividend by 13.1%. The increase reinforces the company’s strong cash-generation profile and may improve its appeal to income-oriented investors, although the stock’s high valuation limits its current dividend yield. Costco Just Upped Its Dividend
• Positive Sentiment: Additional monetization opportunities could support long-term growth. Analysts and commentators point to Costco’s retail-media business, AI-powered search capabilities and pharmacy operations as emerging growth engines alongside membership renewals, warehouse expansion and Kirkland Signature products. Costco Is Quietly Building Its Next Big Growth Engine
• Neutral Sentiment: Costco’s relative resilience compared with Walmart highlights its value proposition. Walmart reported weaker U.S. traffic and comparable-sales growth, while Costco was less affected, suggesting its membership model and perceived value may be helping it navigate consumer affordability pressures. Walmart Drops on Slow Same-Store Sales Growth
• Neutral Sentiment: A potential stock split is speculative. Costco shares have appreciated substantially since the prior 2-for-1 split 26 years ago. A future split could improve accessibility and trading liquidity, but it would not change the company’s underlying value or fundamentals. Costco Stock Split Analysis
• Negative Sentiment: Valuation and modest earnings pressure remain risks. Costco trades at a lofty earnings multiple, while its latest quarterly EPS narrowly missed estimates despite revenue exceeding expectations. That premium leaves less room for disappointment if membership growth, margins or consumer spending weaken.
• Negative Sentiment: The Medicare initiative will require execution. Entering a regulated, competitive insurance market could diversify revenue, but the pilot’s limited geographic rollout and potential healthcare-related complexity mean meaningful financial benefits may take time to develop. Costco Enters the Medicare Insurance Market

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.