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

Key Points

• Costco Wholesale has a consensus analyst rating of “Moderate Buy” from 34 firms, with 22 buy ratings and an average 1-year price target of about $1,061.
• Recent headlines have been generally positive, including Costco’s opening of its first standalone gas station and speculation that its growing cash pile could support a special dividend later in 2026.
• There are also some cautionary signals: director Kenneth D. Denman sold 885 shares, while the stock’s latest earnings report missed EPS estimates by a penny even though revenue came in slightly above expectations.

Shares of Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) have been given an average rating of "Moderate Buy" by the thirty-four ratings firms that are presently covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, eleven have assigned a hold recommendation and twenty-two have given a buy recommendation to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $1,061.4483.

A number of brokerages have issued reports on COST. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Mizuho set a $1,100.00 price objective on Costco Wholesale in a research note on Monday, June 1st. The Goldman Sachs Group upped their price objective on Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research note on Friday, May 29th. Sanford C. Bernstein upped their price objective on Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an "outperform" rating in a research note on Friday, May 29th. Finally, Bank of America upped their price objective on Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a "buy" rating in a research note on Friday, May 29th.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco is expanding its ancillary business with the opening of its first standalone gas station in Mission Viejo, California, which reinforces the company’s ability to deepen member engagement and support traffic beyond warehouse sales. Costco’s first standalone gas station opens in Southern California
• Positive Sentiment: Coverage highlighting Costco’s cash generation and the possibility of a special dividend later in 2026 is likely supporting investor optimism, since such payouts can be a meaningful catalyst for shareholder returns. Costco's Cash Pile Is Building. Is a Special Dividend Coming in the Second Half of 2026?
• Positive Sentiment: Investor interest is rising, with Costco showing up as a heavily searched stock on Zacks, suggesting traders are actively reassessing the name amid recent news flow. Investors Heavily Search Costco Wholesale Corporation (COST): Here is What You Need to Know
• Neutral Sentiment: Several articles continued to highlight Costco’s strong brand, membership model, and popular product assortments, but these were mostly commentary pieces rather than fresh catalysts. The rise of Costco: An iconic American brand with a fanatic following
• Neutral Sentiment: A director sale of 885 shares by Kenneth Denman was disclosed, but the transaction was relatively small versus his remaining holdings, so the signal is limited even if it adds some caution to sentiment. SEC filing for Kenneth D. Denman transaction
• Negative Sentiment: Insider selling can still weigh on shares near term, especially when investors are already focused on valuation and whether Costco’s growth premium is getting stretched. Insider Selling: Costco Wholesale NASDAQ: COST Director Sells 885 Shares of Stock

Insider Activity

In other news, Director Kenneth D. Denman sold 885 shares of the firm's stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the sale, the director owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Costco Wholesale

Several large investors have recently modified their holdings of COST. Brighton Jones LLC boosted 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 purchasing an additional 2,172 shares during the period. Revolve Wealth Partners LLC boosted its holdings in Costco Wholesale by 13.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock valued at $1,029,000 after purchasing an additional 130 shares during the period. Sivia Capital Partners LLC boosted its holdings in Costco Wholesale by 4.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock valued at $3,814,000 after purchasing an additional 165 shares during the period. Pinnacle Wealth Planning Services Inc. boosted its holdings in Costco Wholesale by 1.1% in the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock valued at $2,089,000 after purchasing an additional 23 shares during the period. Finally, Schnieders Capital Management LLC. boosted its holdings in Costco Wholesale by 2.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock valued at $8,416,000 after purchasing an additional 182 shares during the period. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale Trading Up 1.1%

Shares of Costco Wholesale stock opened at $952.54 on Friday. The stock has a fifty day simple moving average of $996.07 and a 200 day simple moving average of $970.54. Costco Wholesale has a 12-month low of $844.06 and a 12-month high of $1,096.50. The company has a market capitalization of $422.43 billion, a P/E ratio of 47.91, a price-to-earnings-growth ratio of 4.61 and a beta of 0.88. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) 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 company had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. During the same quarter last year, the company posted $4.28 EPS. On average, sell-side analysts anticipate that Costco Wholesale will post 20.38 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were given a dividend of $1.47 per share. 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%. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's payout ratio is currently 29.58%.

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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