Costco Wholesale (NASDAQ:COST) Hits New 1-Year High – Here’s Why

Shares of Costco Wholesale Corporation (NASDAQ:COST) reached a new 52-week high on Wednesday . The stock traded as high as $1,096.50 and last traded at $1,094.32, with a volume of 2851390 shares. The stock had previously closed at $1,076.47.

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, marking 22 straight years of dividend increases and signaling confidence in cash generation. This helped push shares to new highs. Where Will Costco Stock Be In 2028?
• Positive Sentiment: Analysts turned more constructive ahead of the company’s May 28 earnings report, with Oppenheimer lifting its price target to $1,160 after strong April sales and the dividend hike. Costco (COST) Stock Gains as Analysts Raise Price Targets Before Quarterly Report
• Positive Sentiment: Costco’s April sales reinforced its defensive appeal, with 11.6% comparable sales growth and 18.8% digital sales growth as value-focused shoppers kept buying in bulk. Costco’s April Sales Reinforce Its Case as the Ultimate Defensive Stock
• Positive Sentiment: New food-court items, including chicken strips, are generating customer buzz and social media attention that may support traffic and membership loyalty. Forget chicken fingers, Costco quietly adds new food court item
• Neutral Sentiment: Several articles discuss whether Costco should split its stock now that shares are above $1,000, but management has not announced any split. Costco’s Stock Keeps Breaking the $1,000 Threshold — Don’t Expect a Stock Split

Analyst Upgrades and Downgrades

COST has been the subject of several research reports. Telsey Advisory Group increased their price target on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an “outperform” rating in a research note on Thursday, April 9th. UBS Group set a $1,175.00 price target on Costco Wholesale in a research note on Friday, March 6th. Sanford C. Bernstein reiterated an “outperform” rating and set a $1,192.00 price target on shares of Costco Wholesale in a research note on Tuesday, May 12th. Truist Financial increased their price target on Costco Wholesale from $926.00 to $977.00 and gave the stock a “hold” rating in a research note on Friday, March 6th. Finally, Roth Mkm reiterated a “sell” rating on shares of Costco Wholesale in a research note on Wednesday, February 4th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,049.27.

Costco Wholesale Trading Up 1.7%

The firm has a 50 day simple moving average of $1,004.71 and a 200 day simple moving average of $957.59. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The firm has a market cap of $485.50 billion, a P/E ratio of 56.91, a P/E/G ratio of 5.30 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, beating analysts’ consensus estimates of $4.55 by $0.03. The firm had revenue of $69.60 billion during the quarter, compared to the consensus estimate of $68.96 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The company’s revenue for the quarter was up 9.2% on a year-over-year basis. During the same quarter last year, the company posted $4.02 EPS. On average, equities research analysts predict that Costco Wholesale Corporation will post 20.31 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

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

Insider Activity

In other news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction dated Monday, March 9th. The stock was 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 approximately $6,139,485.42. This trade represents a 10.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

A number of large investors have recently modified their holdings of the business. Western Wealth Management LLC raised its holdings in shares of Costco Wholesale by 21.0% during the 1st quarter. Western Wealth Management LLC now owns 19,195 shares of the retailer’s stock valued at $19,126,000 after buying an additional 3,333 shares in the last quarter. McIlrath & Eck LLC raised its holdings in shares of Costco Wholesale by 1.0% during the 1st quarter. McIlrath & Eck LLC now owns 6,485 shares of the retailer’s stock valued at $6,462,000 after buying an additional 64 shares in the last quarter. Sonoma Allocations LLC raised its holdings in shares of Costco Wholesale by 6.5% during the 1st quarter. Sonoma Allocations LLC now owns 477 shares of the retailer’s stock valued at $483,000 after buying an additional 29 shares in the last quarter. Orographic Financial Advisors LLC purchased a new position in shares of Costco Wholesale during the 1st quarter valued at about $380,000. Finally, Paragon Private Wealth Management LLC raised its holdings in shares of Costco Wholesale by 13.8% during the 1st quarter. Paragon Private Wealth Management LLC now owns 1,573 shares of the retailer’s stock valued at $1,568,000 after buying an additional 191 shares in the last quarter. 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.