Costco Wholesale Corporation (COST) - What Are Brokerages Thinking About This Stock?

Key Points

• Analysts remain broadly positive: Costco has a “Moderate Buy” consensus, with 25 buy, eight hold and one sell rating among 34 analysts. The average 12-month price target is $1,086.19.
• Operational momentum is strong: The company exceeded quarterly earnings and revenue expectations, with revenue rising 11.1% year over year. Store expansion, membership growth and high renewal rates are expected to support continued performance.
• Premium valuation is a key risk: Costco trades at roughly 49 times earnings, leaving limited room for weaker growth or disappointing results. Two executives also recently sold shares, while insiders own only 0.10% of the company.

Shares of Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) have been given a consensus rating of "Moderate Buy" by the thirty-four research firms that are covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and twenty-five have issued a buy rating on the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $1,086.19.

COST has been the topic of a number of recent research reports. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a research note on Friday, October 9th. Truist Financial dropped their price target on Costco Wholesale from $1,011.00 to $955.00 and set a "hold" rating for the company in a research report on Friday, September 25th. Tigress Financial boosted their price target on Costco Wholesale from $1,065.00 to $1,250.00 and gave the stock a "buy" rating in a report on Thursday, October 15th. Oppenheimer restated an "outperform" rating and issued a $1,160.00 target price on shares of Costco Wholesale in a report on Wednesday, September 16th. Finally, Jefferies Financial Group decreased their price target on shares of Costco Wholesale from $1,130.00 to $1,100.00 in a research note on Friday, September 25th.

Key Costco Wholesale News

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

• Positive Sentiment: Store expansion supports long-term growth. Costco plans to open 13 locations by the end of 2026, potentially expanding its membership base and sales footprint. Costco opening 13 locations by end of 2026
• Positive Sentiment: Membership acquisition remains a focus. A promotional offer providing new members with a $45 gift card could help drive sign-ups ahead of the holiday shopping season, supporting recurring membership-fee revenue. Costco membership Black Friday deal
• Positive Sentiment: Analysts expect continued earnings momentum. Costco’s upcoming fiscal first-quarter 2027 report is expected to show double-digit year-over-year EPS growth. Its latest quarter also beat consensus estimates on both earnings and revenue. What to expect from Costco Wholesale’s next quarterly earnings report
• Positive Sentiment: Customer loyalty and digital engagement remain strengths. Coverage highlights near-record renewal rates, busy warehouses, a younger shopper base and growing use of Costco’s digital channels. These factors reinforce the company’s competitive advantages and long-term sales potential. The New Costco Shopper Is Under 40
• Neutral Sentiment: Healthcare partnerships could deepen member engagement. Integrations with NationsBenefits and SCAN Health Plan are expanding Costco’s role in Medicare-related spending across more than 600 U.S. warehouses, though the financial contribution is not yet clear. Medicare push and Costco investors
• Negative Sentiment: Valuation leaves little room for disappointment. Costco trades at roughly 49 times earnings, making execution and upcoming results especially important. Analysts remain positive, but the stock’s premium valuation could amplify downside if growth slows. Costco stock’s long-term competitive advantages

Insiders Place Their Bets

In other news, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale stock in a transaction dated Tuesday, September 29th. The stock was 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. The trade was a 23.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, EVP William Richard Wilcox sold 1,100 shares of the business's stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the sale, the executive vice president owned 3,094 shares of the company's stock, valued at approximately $2,964,701.74. This represents a 26.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is owned by insiders.

Institutional Trading of Costco Wholesale

A number of institutional investors have recently added to or reduced their stakes in COST. Contravisory Investment Management Inc. increased its holdings in Costco Wholesale by 107.7% during the 3rd quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer's stock valued at $25,000 after purchasing an additional 14 shares during the period. C M Bidwell & Associates Ltd. bought a new position in Costco Wholesale during the 2nd quarter valued at approximately $28,000. Burk Holdings LLC purchased a new stake in Costco Wholesale in the 2nd quarter worth approximately $30,000. Manning & Napier Advisors LLC purchased a new stake in Costco Wholesale in the 2nd quarter worth approximately $30,000. Finally, John Boyer Inc. purchased a new stake in Costco Wholesale in the 3rd quarter worth approximately $32,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Costco Wholesale Price Performance

Shares of NASDAQ COST opened at $1,012.28 on Friday. The company's fifty day moving average is $943.31 and its two-hundred day moving average is $970.25. Costco Wholesale has a one year low of $844.06 and a one year high of $1,096.50. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. The firm has a market capitalization of $448.57 billion, a P/E ratio of 48.76, a PEG ratio of 4.26 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, topping analysts' consensus estimates of $6.54 by $0.21. The business had revenue of $95.72 billion for the quarter, compared to analysts' expectations of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The company's revenue was up 11.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $5.87 EPS. Analysts forecast that Costco Wholesale will post 22.70 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be paid a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Friday, October 30th. Costco Wholesale's payout ratio is presently 28.32%.

About Costco Wholesale

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.