Costco Wholesale Corporation (NASDAQ:COST) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a positive outlook: Costco has a “Moderate Buy” consensus from 34 analysts, including 22 buy ratings, with an average 12-month price target of approximately $1,059.53.
• Strong revenue but a slight earnings miss: The company reported quarterly revenue of $70.53 billion, ahead of estimates, while earnings per share of $4.93 narrowly missed the $4.94 consensus. Costco trades at a relatively high P/E ratio of 48.34, making valuation a key concern.
• Shareholder returns and ownership activity: Costco declared a quarterly dividend of $1.47 per share, equivalent to a 0.6% yield, while a company director sold 885 shares. Institutional investors own approximately 68.48% of the stock.

Shares of Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) have earned an average recommendation of "Moderate Buy" from the thirty-four ratings firms that are presently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and twenty-two have assigned a buy rating to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $1,059.5333.

A number of equities analysts recently weighed in on the stock. TD Cowen restated a "buy" rating and set a $1,175.00 target price on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Oppenheimer lifted their price objective on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 19th. HC Wainwright restated a "buy" rating on shares of Costco Wholesale in a report on Monday, June 1st. The Goldman Sachs Group increased 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. Finally, JPMorgan Chase & Co. dropped their price target on Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating for the company in a research report on Thursday, July 9th.

Insider Activity

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the firm's stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the sale, the director owned 4,779 shares of the company's stock, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.10% of the company's stock.

Hedge Funds Weigh In On Costco Wholesale

Several institutional investors have recently made changes to their positions in the company. C M Bidwell & Associates Ltd. bought a new position in shares of Costco Wholesale during the second quarter valued at approximately $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in Costco Wholesale in the fourth quarter worth approximately $27,000. Burk Holdings LLC bought a new position in Costco Wholesale in the second quarter worth approximately $30,000. Manning & Napier Advisors LLC purchased a new stake in Costco Wholesale during the second quarter worth $30,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in Costco Wholesale during the fourth quarter worth $28,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale Stock Performance

COST opened at $961.05 on Monday. The company has a 50 day simple moving average of $949.77 and a two-hundred day simple moving average of $981.32. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The firm has a market cap of $426.21 billion, a P/E ratio of 48.34, a PEG ratio of 4.57 and a beta of 0.87. Costco Wholesale has a 1-year low of $844.06 and a 1-year high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The firm had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the prior year, the company posted $4.28 EPS. Equities analysts forecast that Costco Wholesale will post 20.42 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were issued a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale's dividend payout ratio is presently 29.58%.

Key Costco Wholesale News

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

• Positive Sentiment: Market-share gains in Canada: Costco is now Canada’s second-largest grocery store chain, indicating continued customer adoption and potential for international growth. Costco Wholesale Is Now Canada’s Second Largest Grocery Store Chain
• Positive Sentiment: Resilient value proposition: Analysts continue to highlight Costco’s ability to attract and retain members through low prices, including inexpensive gasoline. This value positioning could support demand as consumers remain selective. Retail Stocks Poised for an Earnings Beat
• Positive Sentiment: Expansion remains a growth driver: Seven additional U.S. locations are planned for 2026, adding warehouse capacity and supporting membership and sales growth over time. Seven New Costco Locations Coming in 2026
• Neutral Sentiment: Tariff-refund uncertainty: Costco says it will return tariff-related refunds to customers, but the timing and mechanics remain unclear. The policy may reinforce customer goodwill, although refunds could create temporary administrative and cash-flow considerations. Costco Tariff Refunds
• Neutral Sentiment: Operational and competitive updates: Costco will close U.S. warehouses on September 7 for Labor Day, while rival BJ’s continues expanding. These developments are unlikely to materially change near-term earnings but highlight ongoing competitive dynamics. Costco Labor Day Closure
• Negative Sentiment: Valuation remains a concern: Despite a recent pullback, Costco’s roughly 48-times P/E ratio leaves limited room for execution misses. Moderating sales growth and potential margin pressure could keep investors cautious, particularly after the latest quarter narrowly missed EPS expectations. Is Costco Stock Worth Buying Now or Still Too Pricey to Touch?

Costco Wholesale Company Profile

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.

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.

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