Costco Wholesale (NASDAQ:COST) Stock Price Up 1.3% - Still a Buy?

Key Points

• Costco shares rose 1.3% to about $935.85, but remain below their 200-day moving average and have recently underperformed the S&P 500.
• The company continues to show strong operating momentum: fiscal 2026 digital sales exceeded $33 billion, paid membership reached 84.1 million, renewal rates were 92.3% in the U.S. and Canada, and its latest quarterly revenue increased 11.1% year over year while earnings beat estimates.
• Wall Street remains broadly positive, with a “Moderate Buy” consensus and an average price target of $1,046.27, though Costco’s roughly 45-times earnings valuation and potential merchandise-margin pressure from Kirkland price cuts could limit further upside. Investors are also awaiting the September sales report on October 7.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) rose 1.3% during mid-day trading on Tuesday. The stock traded as high as $937.04 and last traded at $935.8490. 1,801,818 shares were traded during mid-day trading, a decline of 18% from the average session volume of 2,197,591 shares. The stock had previously closed at $923.52.

Costco Wholesale News Roundup

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

• Positive Sentiment: Digital sales reached more than $33 billion in fiscal 2026, with faster delivery, personalization and AI-powered search potentially supporting continued e-commerce growth. Costco's Digital Sales Top $33 Billion: Can E-commerce Keep Scaling?
• Positive Sentiment: AI shopping agents frequently cite Costco and Walmart, indicating strong brand visibility and potential to attract additional online customers as AI-driven commerce develops. Which Retailers Do AI Agents Cite the Most?
• Positive Sentiment: Costco’s 84.1 million paid members and 92.3% U.S. and Canada renewal rate reinforce its recurring-revenue model and competitive moat. Analysts also maintain a generally favorable view, with brokerages assigning an average “Moderate Buy” rating. Is Costco’s Moat Really Worth the Premium? Costco Receives Average Rating of Moderate Buy
• Neutral Sentiment: Investors are awaiting Costco’s September sales report, scheduled for October 7 after the market close. The results could provide the next major catalyst for the stock. Why Telsey Still Likes Costco Ahead of September Sales Results
• Neutral Sentiment: Speculation is building that Costco could issue a special dividend later this year as its cash balance grows, although no payout has been announced. Costco's Cash Pile Keeps Building
• Negative Sentiment: Despite continued revenue, profit and membership growth, Costco has trailed the S&P 500 recently. Commentary questions whether the shares are genuinely inexpensive after a decline from their record, particularly given a roughly 45-times earnings valuation. Is Costco Too Cheap to Pass Up?
• Negative Sentiment: A recent rating downgrade argues that Costco’s premium valuation leaves limited room for further gains, potentially restraining investor enthusiasm. Costco: Where Does the Stock Go From Here?
• Negative Sentiment: Price reductions on Kirkland Signature products may strengthen member value and competitiveness, but could also pressure merchandise margins if the discounts persist. Costco's Kirkland Signature Price Cuts Aim to Widen the Value Moat

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Argus restated a "buy" rating and set a $1,230.00 price target on shares of Costco Wholesale in a research note on Monday, September 28th. Evercore restated an "outperform" rating on shares of Costco Wholesale in a research note on Tuesday, September 22nd. Deutsche Bank Aktiengesellschaft lowered their price target on shares of Costco Wholesale from $1,091.00 to $1,079.00 and set a "buy" rating on the stock in a report on Monday, September 28th. Wells Fargo & Company decreased their target price on shares of Costco Wholesale from $1,000.00 to $950.00 and set an "equal weight" rating on the stock in a research report on Friday, September 25th. Finally, UBS Group reissued a "buy" rating on shares of Costco Wholesale in a research report on Thursday, September 17th. Twenty-two analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $1,046.27.

Costco Wholesale Trading Up 1.3%

The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. The stock has a market cap of $415.03 billion, a P/E ratio of 45.08, a price-to-earnings-growth ratio of 3.93 and a beta of 0.88. The business's fifty day simple moving average is $932.20 and its 200 day simple moving average is $964.21.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating the consensus estimate of $6.54 by $0.21. The business had revenue of $95.72 billion for the quarter, compared to analysts' expectations of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. Costco Wholesale's revenue was up 11.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.87 earnings per share. As a group, analysts expect that Costco Wholesale Corporation will post 22.86 EPS for the current year.

Costco Wholesale Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were given a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale's dividend payout ratio (DPR) is presently 28.32%.

Insider Transactions at Costco Wholesale

In other news, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the completion of the sale, the executive vice president owned 7,134 shares in the company, valued at $6,534,244.62. The trade was a 23.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 0.10% of the company's stock.

Institutional Trading of Costco Wholesale

Institutional investors and hedge funds have recently made changes to their positions in the business. State Street Corp boosted its position in shares of Costco Wholesale by 31.7% during the second quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock worth $22,359,224,000 after purchasing an additional 5,749,362 shares in the last quarter. Bank of America Corp DE raised its stake in Costco Wholesale by 11.5% during the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock worth $7,488,203,000 after buying an additional 773,651 shares during the period. Diamant Asset Management Inc. lifted its holdings in Costco Wholesale by 99,278.0% during the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock worth $672,690,000 after acquiring an additional 6,720,130 shares in the last quarter. Corient Private Wealth LLC lifted its holdings in Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock worth $5,282,182,000 after acquiring an additional 5,472,968 shares in the last quarter. Finally, Invesco Ltd. grew its stake in Costco Wholesale by 3.4% in the fourth quarter. Invesco Ltd. now owns 4,328,729 shares of the retailer's stock valued at $3,732,836,000 after acquiring an additional 143,150 shares during the period. Institutional investors own 68.48% of the company's stock.

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.

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