Costco Wholesale Corporation (NASDAQ:COST) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Costco currently has a consensus analyst rating of "Moderate Buy" from 34 research firms, with 22 buy ratings, 11 holds, and just one sell. The average 12-month price target is about $1,056, suggesting modest upside from recent levels.
• The company recently posted mixed quarterly results: revenue came in above expectations at $70.53 billion, but earnings per share of $4.93 slightly missed the $4.94 consensus estimate. Despite that, Costco still delivered strong profitability metrics, including a 28.72% return on equity.
• Costco also raised its quarterly dividend to $1.47 per share from $1.30, lifting the annualized payout to $5.88. However, the stock remains under pressure after earnings as investors weigh its high valuation and tempered post-report performance.

Shares of Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the thirty-four research firms that are covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, eleven have assigned a hold rating and twenty-two have issued a buy rating on the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $1,056.3214.

A number of research analysts have recently commented on the stock. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. The Goldman Sachs Group lifted their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Weiss Ratings raised shares of Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, March 17th. Evercore set a $1,100.00 price objective on shares of Costco Wholesale in a research report on Monday, March 2nd. Finally, Raymond James Financial lifted their price objective on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an "outperform" rating in a research report on Friday, March 6th.

Costco Wholesale Stock Performance

Shares of COST opened at $954.27 on Wednesday. The firm has a 50-day moving average of $1,007.23 and a 200-day moving average of $963.04. Costco Wholesale has a one year low of $844.06 and a one year high of $1,096.50. The company has a market cap of $423.36 billion, a PE ratio of 48.00, a price-to-earnings-growth ratio of 4.59 and a beta of 0.88. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.72%. The firm had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. During the same period last year, the business earned $4.28 EPS. As a group, equities analysts forecast that Costco Wholesale will post 20.36 earnings per share for the current year.

Costco Wholesale Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were given a $1.47 dividend. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's payout ratio is 30.58%.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco reported robust fiscal Q3 results, including double-digit sales growth, strong comparable sales, and continued strength in memberships and digital operations, which supports the long-term investment case. Article Title
• Positive Sentiment: Jefferies said Costco’s value strategy, membership growth, and fuel business continue to support sales momentum, reinforcing confidence in the company’s operating model. Article Title
• Positive Sentiment: Analysts highlighted Costco’s strong traffic trends and larger baskets, suggesting the company is still gaining share with shoppers even as the stock weakens. Article Title
• Positive Sentiment: Costco’s record gas sales and surprisingly strong protein sales show continued demand across key categories, which may help offset concerns about slower overall momentum. Article Title
• Neutral Sentiment: Multiple market commentaries say Costco is attracting heavy investor attention after earnings, but the stock remains stuck in a post-results pullback as traders weigh the next catalyst. Article Title
• Neutral Sentiment: Several articles note that Costco’s stock has failed to rally after its strong quarter, implying investors may already have high expectations priced in. Article Title
• Negative Sentiment: Costco was downgraded in a blue-chip rankings update, adding to the cautious tone around the shares. Article Title
• Negative Sentiment: Commentary from Jim Cramer and other analysts suggested Costco could have done better, reinforcing concerns that the market expected even more from the latest report. Article Title
• Negative Sentiment: Market coverage says COST is falling despite record-breaking gas sales, underscoring that investors are focusing on valuation and the post-earnings setup rather than the headline growth. Article Title

Insider Activity at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the completion of the transaction, the executive vice president owned 6,121 shares of the company's stock, valued at $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 is available at this link. 0.10% of the stock is currently owned by company insiders.

Institutional Trading of Costco Wholesale

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Palisade Asset Management LLC boosted its holdings in shares of Costco Wholesale by 1.4% during the 4th quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock worth $605,000 after buying an additional 10 shares during the period. Graybill Wealth Management LTD. boosted its holdings in shares of Costco Wholesale by 0.3% during the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock worth $2,754,000 after buying an additional 10 shares during the period. Wealth Effects LLC boosted its holdings in shares of Costco Wholesale by 1.2% during the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock worth $871,000 after buying an additional 10 shares during the period. Folger Nolan Fleming Douglas Capital Management Inc. boosted its holdings in shares of Costco Wholesale by 1.8% during the 1st quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock worth $549,000 after buying an additional 10 shares during the period. Finally, First National Bank of Hutchinson boosted its holdings in shares of Costco Wholesale by 0.9% during the 1st quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock worth $1,094,000 after buying an additional 10 shares during the period. 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.

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