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

Key Points

• Wall Street remains upbeat on Costco, with 35 analysts giving the stock a consensus “Moderate Buy” rating. The average 1-year price target is about $1,059, and recent reports from firms like TD Cowen, BTIG, and Oppenheimer were largely positive.
• Costco’s latest quarter was mixed: it reported $4.93 EPS, slightly below estimates, while revenue of $70.53 billion came in above expectations. Analysts still expect the company to earn $20.42 per share for the current fiscal year.
• The company also announced a quarterly dividend of $1.47 per share, payable August 7, giving it an annualized yield of about 0.6%. However, the stock’s valuation remains rich, with a P/E of 46.65 and shares trading below their recent highs.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the thirty-five analysts that are presently covering the company, Marketbeat Ratings reports. One research 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 1-year price objective among analysts that have issued ratings on the stock in the last year is $1,059.0667.

A number of equities research analysts recently weighed in on the company. TD Cowen reaffirmed a "buy" rating and set a $1,175.00 price target on shares of Costco Wholesale in a report on Wednesday, June 3rd. Guggenheim reissued a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Deutsche Bank Aktiengesellschaft increased their target price on Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. BTIG Research restated a "buy" rating and issued a $1,125.00 target price on shares of Costco Wholesale in a research note on Friday, May 29th. Finally, Oppenheimer lifted their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a report on Tuesday, May 19th.

Costco Wholesale Price Performance

Shares of Costco Wholesale stock opened at $927.31 on Thursday. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The stock has a market capitalization of $411.24 billion, a price-to-earnings ratio of 46.65, a P/E/G ratio of 4.49 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 firm's 50-day moving average price is $970.49 and its two-hundred day moving average price is $979.74.

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

Costco Wholesale Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Friday, July 24th will be given a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date is Friday, July 24th. Costco Wholesale's dividend payout ratio (DPR) is presently 29.58%.

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the business'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 transaction, the director directly owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.10% of the company's stock.

Institutional Trading of Costco Wholesale

Several hedge funds have recently modified their holdings of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of Costco Wholesale in the 4th quarter valued at $27,000. Lifetime Wealth Management P.C. acquired a new position in shares of Costco Wholesale during the fourth quarter valued at $28,000. Mcguire Capital Advisors Inc. bought a new position in Costco Wholesale in the fourth quarter valued at about $28,000. Entrust Financial LLC bought a new position in Costco Wholesale in the fourth quarter valued at about $31,000. Finally, Joseph Group Capital Management acquired a new stake in Costco Wholesale in the fourth quarter worth about $33,000. 68.48% of the stock is owned by institutional investors.

Costco Wholesale News Roundup

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

• Positive Sentiment: Analysts and commentators continue to highlight Costco’s durable earnings growth, strong membership model, and long-term upside potential, with some articles arguing the stock could eventually move toward much higher valuations. Article Title
• Positive Sentiment: Costco expanded its business footprint by launching its first standalone members-only gas station in Mission Viejo, California, which reinforces its growth strategy beyond traditional warehouse sites. Article Title
• Positive Sentiment: Recent coverage also points to continued store expansion, including reports that more Costco locations are coming in 2026, while local officials say a new store could bring meaningful tax revenue to Clarksville. Article Title
• Positive Sentiment: Costco is also broadening its value proposition through new services and products, including expanded pharmacy/prescription offerings and the addition of Laifen hair dryers in select U.S. stores, which may help drive traffic and membership retention. Article Title
• Neutral Sentiment: Several articles were broadly positive on Costco’s brand and long-term investment case, including a Zacks analyst roundup and bullish “trillion club” projections, but they did not appear to include new company-specific catalysts for today’s trading. Article Title
• Neutral Sentiment: Some commentary noted Costco members are paying more for memberships because added perks are viewed as worth the cost, which supports the business model but is not an immediate catalyst. Article Title
• Negative Sentiment: One article highlighted that Costco has faced three lawsuits this year, which could add legal and reputational overhang even if the cases are not yet financially material. Article Title
• Negative Sentiment: Some investor commentary remains cautious on valuation, noting that Costco already trades at a premium and that another warehouse competitor may offer better upside, which can temper enthusiasm for the shares. Article Title

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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