Costco Wholesale (NASDAQ:COST) Shares Up 1.7% - Here's What Happened

Key Points

• Costco shares rose 1.7% on Tuesday, reaching an intraday high of $1,096.50 as trading volume came in well above average.
• Investors remain optimistic after Costco raised its quarterly dividend 13% to $1.47 per share and posted strong recent sales, reinforcing confidence in its cash flow and demand trends.
• Analysts are increasingly bullish, with several raising price targets ahead of earnings; Oppenheimer reportedly lifted its target to $1,160, while MarketBeat shows a consensus rating of Moderate Buy.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report)'s stock price shot up 1.7% on Tuesday . The company traded as high as $1,096.50 and last traded at $1,094.32. 2,610,586 shares traded hands during trading, an increase of 25% from the average session volume of 2,095,572 shares. The stock had previously closed at $1,076.47.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Costco raised its quarterly dividend by 13% to $1.47 per share, marking 22 straight years of dividend increases and signaling confidence in cash flow. Where Will Costco Stock Be In 2028?
• Positive Sentiment: Analysts turned more constructive, with Oppenheimer reportedly lifting its price target to $1,160 ahead of Costco’s upcoming earnings report, adding to optimism around the stock. Costco (COST) Stock Gains as Analysts Raise Price Targets Before Quarterly Report
• Positive Sentiment: Recent sales trends remain strong, with April revenue growth and comp sales showing resilient consumer demand for Costco’s value-focused model, supporting the bullish case for the shares. Costco's April Sales Reinforce Its Case as the Ultimate Defensive Stock
• Neutral Sentiment: Costco’s stock has been repeatedly setting new highs, reflecting strong momentum, while investors are also discussing whether the company will eventually split its shares; management has not signaled any split plans. Costco's Stock Keeps Breaking the $1,000 Threshold -- Don't Expect a Stock Split
• Negative Sentiment: A federal jury verdict in a disability discrimination case introduces some legal overhang, though the financial impact appears limited relative to Costco’s overall scale. How Investors Are Reacting To Costco Wholesale (COST) Double‑Digit April Sales, Florida Expansion And Jury Verdict

Analyst Upgrades and Downgrades

COST has been the subject of a number of research analyst reports. Wells Fargo & Company boosted their price target on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Thursday, April 9th. Roth Mkm reissued a "sell" rating on shares of Costco Wholesale in a report on Wednesday, February 4th. BMO Capital Markets boosted their price target on Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an "outperform" rating in a report on Friday, March 6th. UBS Group set a $1,175.00 price target on Costco Wholesale in a report on Friday, March 6th. Finally, JPMorgan Chase & Co. boosted their price target on Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an "overweight" rating in a report on Friday, April 17th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $1,049.27.

Costco Wholesale Price Performance

The business has a fifty day moving average price of $1,002.78 and a 200 day moving average price of $956.31. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The company has a market cap of $485.50 billion, a price-to-earnings ratio of 56.91, a PEG ratio of 5.16 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.55 by $0.03. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The business had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. During the same quarter in the prior year, the firm earned $4.02 EPS. The business's revenue for the quarter was up 9.2% compared to the same quarter last year. As a group, research analysts anticipate that Costco Wholesale Corporation will post 20.31 earnings per share for the current year.

Costco Wholesale Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were issued a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Friday, May 1st. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's payout ratio is currently 30.58%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction dated Monday, March 9th. The stock was 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 represents a 10.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Costco Wholesale

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Sonoma Allocations LLC boosted its position in shares of Costco Wholesale by 6.5% during the 1st quarter. Sonoma Allocations LLC now owns 477 shares of the retailer's stock valued at $483,000 after purchasing an additional 29 shares in the last quarter. Orographic Financial Advisors LLC acquired a new stake in Costco Wholesale during the first quarter worth approximately $380,000. Paragon Private Wealth Management LLC grew its stake in Costco Wholesale by 13.8% during the first quarter. Paragon Private Wealth Management LLC now owns 1,573 shares of the retailer's stock worth $1,568,000 after purchasing an additional 191 shares during the period. Ariadne Wealth Management LP grew its stake in Costco Wholesale by 48.4% during the first quarter. Ariadne Wealth Management LP now owns 500 shares of the retailer's stock worth $498,000 after purchasing an additional 163 shares during the period. Finally, Bank of America Corp DE grew its stake in Costco Wholesale by 11.5% during the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock worth $7,488,203,000 after purchasing an additional 773,651 shares during the period. Institutional investors and hedge funds 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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