Costco Wholesale Corporation (NASDAQ:COST) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Costco, with 22 buy, 10 hold, and one sell rating among 33 firms. The average 12-month price target is $1,046.27.
• Costco beat quarterly expectations, reporting $6.75 in EPS versus the $6.54 consensus and $95.72 billion in revenue, up 11.1% year over year.
• The stock opened at $923.52, while institutional investors owned 68.48% of shares. Costco also declared a quarterly dividend of $1.47 per share, equating to a 0.6% annualized yield.

Shares of Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the thirty-three ratings firms that are covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, ten have given a hold recommendation and twenty-two have given a buy recommendation to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $1,046.27.

COST has been the topic of several analyst reports. Deutsche Bank Aktiengesellschaft reduced their target price on Costco Wholesale from $1,091.00 to $1,079.00 and set a "buy" rating on the stock in a report on Monday, September 28th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $1,000.00 price objective on shares of Costco Wholesale in a research report on Friday, September 25th. Jefferies Financial Group reduced their price objective on shares of Costco Wholesale from $1,130.00 to $1,100.00 in a research note on Friday, September 25th. Sanford C. Bernstein reduced their price objective on shares of Costco Wholesale from $1,144.00 to $1,143.00 and set an "outperform" rating on the stock in a research note on Friday, September 25th. Finally, Robert W. Baird set a $1,175.00 target price on shares of Costco Wholesale in a report on Friday, September 25th.

Insider Transactions at Costco Wholesale

In related news, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Costco Wholesale

Large investors have recently modified their holdings of the business. Bank of America Corp DE bought a new position in Costco Wholesale in the 2nd quarter valued at approximately $6,781,946,000. Diamant Asset Management Inc. grew its stake in shares of Costco Wholesale by 99,278.0% during the first 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 during the last quarter. State Street Corp lifted its stake in shares of Costco Wholesale by 31.7% in the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock valued at $22,359,224,000 after acquiring an additional 5,749,362 shares during the last quarter. Corient Private Wealth LLC boosted its holdings in shares of Costco Wholesale by 838.9% during the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock valued at $5,282,182,000 after acquiring an additional 5,472,968 shares in the last quarter. Finally, Legal & General Group Plc bought a new stake in Costco Wholesale during the 2nd quarter worth $2,362,188,000. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Trading Up 0.3%

Shares of COST stock opened at $923.52 on Tuesday. The stock has a market cap of $409.56 billion, a P/E ratio of 44.49, a price-to-earnings-growth ratio of 3.93 and a beta of 0.88. Costco Wholesale has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. The stock has a 50 day simple moving average of $932.20 and a 200 day simple moving average of $964.21.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping analysts' consensus estimates of $6.54 by $0.21. The firm had revenue of $95.72 billion for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter last year, the company earned $5.87 EPS. On average, research analysts predict that Costco Wholesale will post 22.86 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were given a dividend of $1.47 per share. The ex-dividend date was Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is currently 28.32%.

More Costco Wholesale News

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

• Positive Sentiment: Costco’s fiscal 2026 performance remains a major strength: revenue reportedly reached $276.4 billion, membership-fee revenue totaled $5.3 billion, and return on invested capital exceeded 28%. Free cash flow also reached $9.39 billion, reinforcing the company’s financial flexibility. Costco Keeps Delivering, but What Is the Price Tag Assuming?
• Positive Sentiment: Costco is cutting prices on selected Kirkland Signature staples, using tariff refunds and private-label economics to improve value for members. The strategy could strengthen customer loyalty and Costco’s competitive position against grocery chains and discount retailers. Costco’s Kirkland Signature Price Cuts Aim to Widen the Value Moat
• Positive Sentiment: A new warehouse opening in the Kansas City area highlights Costco’s ongoing expansion and continued customer demand. Analysts and financial commentators also continue to cite memberships, new warehouses, delivery, and merchandising as long-term growth drivers. Costco Opens New Location in Kansas City Metro
• Neutral Sentiment: Telsey remains positive ahead of the September sales update, while comparisons with Dollar General and Target frame Costco as a higher-quality but potentially less undervalued retail investment. Costco is also viewed as an attractive long-term dividend holding because of its recurring dividends and occasional special payouts. Why Telsey Still Likes Costco Ahead of September Sales Results
• Negative Sentiment: Underlying comparable-sales growth has slowed for three consecutive months, falling from 8% in May to 5.4% in August when excluding fuel and currency effects. Investors will look to the September report for evidence that the slowdown has ended. Costco’s Underlying Sales Growth Has Slowed
• Negative Sentiment: One analysis downgraded Costco, arguing that much of its strong execution is already reflected in the share price. With a forward-looking valuation viewed as demanding, weaker September sales could trigger additional profit-taking. Costco Rating Downgrade

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.

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