Costco Wholesale (NASDAQ:COST) Stock Price Up 1.4% – Should You Buy?

Costco Wholesale Corporation (NASDAQ:COST)’s stock price rose 1.4% during trading on Thursday. The company traded as high as $996.42 and last traded at $996.08. Approximately 1,590,124 shares changed hands during trading, a decline of 27% from the average daily volume of 2,189,452 shares. The stock had previously closed at $982.73.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: The FTC’s pricing investigation is targeting rivals Walmart and Target, which may give Costco a relative boost if its value-focused membership model is viewed as more trustworthy and competitively priced. Costco Stock Ticks Up as the FTC Faces Rivals Walmart and Target in Pricing Probe
• Positive Sentiment: Recent coverage highlights Costco’s structural advantages, including strong membership renewal rates, customer loyalty, limited product selection and the “treasure hunt” shopping experience. These factors support recurring revenue and long-term growth despite the stock’s expensive valuation. Costco Stock’s Long-Term Upside Could Come From These Three Competitive Advantages
• Positive Sentiment: Costco’s digital business is becoming increasingly important, with younger shoppers using its mobile platform and artificial-intelligence tools while still engaging with the warehouse experience. New-store expansion and health-benefit checkout services at more than 600 locations also provide incremental growth avenues. The New Costco Shopper Is Under 40, Shops With AI and Still Loves the Treasure Hunt
• Positive Sentiment: CICC initiated coverage with an “outperform” rating, adding fresh analyst support for the stock. CICC Initiates Coverage of Costco Wholesale Corporation
• Neutral Sentiment: Analysts and investors continue debating whether Costco’s premium valuation is justified by its execution, membership strength and long-term earnings potential. The shares trade at a high earnings multiple, leaving limited room for operational disappointments. Costco’s Valuation Remains a Head Scratcher
• Negative Sentiment: Bearish commentary warns that expensive valuation, mixed macroeconomic conditions and uncertain special-dividend prospects could limit further upside or increase volatility. Costco: Special Dividend Prospects Meet Expensive Valuations and Mixed Macros

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on COST shares. Bank of America reduced their price target on shares of Costco Wholesale from $1,200.00 to $1,095.00 and set a “buy” rating for the company in a report on Wednesday, September 16th. Mizuho reduced their price target on Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating for the company in a research report on Friday, September 25th. Oppenheimer reaffirmed an “outperform” rating and set a $1,160.00 price objective on shares of Costco Wholesale in a research report on Wednesday, September 16th. Argus reiterated a “buy” rating and set a $1,230.00 price objective on shares of Costco Wholesale in a research note on Monday, September 28th. Finally, DA Davidson raised their target price on shares of Costco Wholesale from $1,000.00 to $1,040.00 and gave the company a “neutral” rating in a research note on Friday, September 25th. Twenty-five investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Costco Wholesale currently has a consensus rating of “Moderate Buy” and an average price target of $1,086.19.

Costco Wholesale Stock Performance

The company has a market capitalization of $441.39 billion, a price-to-earnings ratio of 47.98, a price-to-earnings-growth ratio of 4.29 and a beta of 0.88. The firm has a fifty day simple moving average of $940.95 and a 200 day simple moving average of $969.55. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.54 by $0.21. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The business had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. During the same period last year, the firm posted $5.87 earnings per share. The company’s revenue was up 11.1% compared to the same quarter last year. On average, analysts anticipate that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be given a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Friday, October 30th. Costco Wholesale’s dividend payout ratio is 28.32%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the firm’s stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total value of $2,015,046.00. Following the transaction, the executive vice president directly owned 7,134 shares of the company’s stock, valued at $6,534,244.62. This trade represents a 23.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total value of $1,054,031.00. Following the completion of the sale, the executive vice president directly owned 3,094 shares of the company’s stock, valued at approximately $2,964,701.74. This represents a 26.23% decrease in their position. The SEC filing for this sale provides additional information. 0.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Costco Wholesale

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Contravisory Investment Management Inc. grew its position in Costco Wholesale by 107.7% in the 3rd quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer’s stock valued at $25,000 after acquiring an additional 14 shares in the last quarter. C M Bidwell & Associates Ltd. acquired a new stake in Costco Wholesale during the 2nd quarter worth approximately $28,000. Burk Holdings LLC acquired a new position in shares of Costco Wholesale in the second quarter worth $30,000. Manning & Napier Advisors LLC purchased a new position in Costco Wholesale in the second quarter valued at $30,000. Finally, John Boyer Inc. acquired a new position in shares of Costco Wholesale during the third quarter worth about $32,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.