Costco Wholesale Corporation (NASDAQ:COST) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a moderately bullish view: Of 35 brokerages covering Costco, 22 recommend buying, 12 advise holding and one rates it a sell. The average 12-month price target is approximately $1,056.
• Costco is expanding its warehouse footprint: The company plans to open 14 locations across the U.S. and Canada by the end of 2026, which could support membership growth, sales and recurring fee revenue.
• Valuation and execution remain key concerns: Shares opened at $902.38, below their 50-day and 200-day moving averages, while commentary has questioned Costco’s premium valuation and recent online Marketplace shutdown.

Shares of Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) have received an average recommendation of "Moderate Buy" from the thirty-five brokerages that are currently covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, twelve have given a hold recommendation and twenty-two have assigned a buy recommendation to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $1,056.0323.

Several equities analysts have weighed in on the stock. Weiss Ratings downgraded shares of Costco Wholesale from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 2nd. The Goldman Sachs Group upped their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a report on Friday, May 29th. TD Cowen reiterated a "buy" rating and issued a $1,175.00 price target on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Mizuho set a $1,100.00 price objective on shares of Costco Wholesale in a research note on Monday, June 1st. Finally, Freedom Broker upgraded Costco Wholesale from a "hold" rating to a "buy" rating and set a $1,030.00 price objective for the company in a research report on Tuesday.

Insiders Place Their Bets

In other news, Director Kenneth Denman sold 885 shares of the business's stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the transaction, the director directly owned 4,779 shares of the company's stock, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 0.10% of the company's stock.

Institutional Trading of Costco Wholesale

A number of large investors have recently made changes to their positions in COST. Brighton Jones LLC grew its stake in Costco Wholesale by 12.3% in the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock worth $18,165,000 after acquiring an additional 2,172 shares during the period. Revolve Wealth Partners LLC lifted its stake in shares of Costco Wholesale by 13.1% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock worth $1,029,000 after purchasing an additional 130 shares during the period. Sivia Capital Partners LLC boosted its holdings in shares of Costco Wholesale by 4.5% during the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock worth $3,814,000 after purchasing an additional 165 shares during the last quarter. Pinnacle Wealth Planning Services Inc. boosted its holdings in shares of Costco Wholesale by 1.1% during the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock worth $2,089,000 after purchasing an additional 23 shares during the last quarter. Finally, Schnieders Capital Management LLC. boosted its stake in Costco Wholesale by 2.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock worth $8,416,000 after buying an additional 182 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

More Costco Wholesale News

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

• Positive Sentiment: Expansion supports long-term growth: Costco plans to open 14 warehouses across the United States and Canada before the end of 2026, including five in October and nine in November. New locations could increase membership, sales and recurring fee revenue. Costco set to expand with 14 new warehouses across US and Canada
• Positive Sentiment: A relocated Newport News warehouse is scheduled to open in November, providing additional capacity and potentially improving the customer experience in that market. Relocated Newport News Costco set to open in November
• Positive Sentiment: Freedom Broker upgraded COST to Buy, offering supportive analyst sentiment after the stock’s recent underperformance. Costco Wholesale Raised to Buy at Freedom Broker
• Positive Sentiment: Coverage highlights Costco’s efforts to improve shopping convenience and add seasonal merchandise, initiatives that may strengthen member loyalty and spending relative to Walmart and Amazon. Costco fixed the one thing members hated about shopping there
• Neutral Sentiment: Reported short-interest data showed zero shares and a zero-day days-to-cover ratio, but the reported increase was listed as “NaN,” making the figures unreliable and unlikely to provide a meaningful trading signal.
• Neutral Sentiment: A profile of a well-paid Costco meat cutter underscores the company’s wages, benefits and employee retention, but has limited direct impact on near-term financial results. Costco employee discusses wages and career choice
• Negative Sentiment: Costco reportedly shut down its online Marketplace service, raising questions about e-commerce execution and the company’s ability to compete digitally. Costco abruptly shuts down Marketplace online service
• Negative Sentiment: Residents near the planned Lee’s Summit warehouse are concerned about traffic, potentially causing permitting, construction or community-relations friction. Residents concerned Costco’s new Lee’s Summit location will cause traffic issues
• Negative Sentiment: Some commentary argues Costco may have lost part of its competitive edge and questions whether the stock’s premium valuation is justified after recent underperformance. Cramer warns Costco may have lost its edge

Costco Wholesale Trading Down 0.0%

NASDAQ:COST opened at $902.38 on Friday. Costco Wholesale has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The stock has a fifty day simple moving average of $941.02 and a 200-day simple moving average of $974.99. The company has a market capitalization of $400.19 billion, a PE ratio of 45.39, a price-to-earnings-growth ratio of 3.76 and a beta of 0.86.

Costco Wholesale Dividend Announcement

The business also recently announced 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. This represents a $5.88 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Friday, July 24th. Costco Wholesale's dividend payout ratio is 29.58%.

About Costco Wholesale

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.

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