Costco Wholesale Corporation (NASDAQ:COST – Get Free Report) shot up 1.5% on Wednesday . The company traded as high as $985.26 and last traded at $983.37. 1,688,092 shares were traded during trading, a decline of 22% from the average session volume of 2,174,093 shares. The stock had previously closed at $968.59.
Costco Wholesale News Summary
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Erste Group Bank lifted its FY2026 and FY2027 earnings forecasts for Costco, signaling expectations for stronger profitability ahead.
- Positive Sentiment: Commentary in 24/7 Wall St. emphasized Costco’s membership-fee model as a resilient source of recurring revenue that can support long-term earnings growth.
- Positive Sentiment: Barchart coverage noted Costco as one of the retail names rewarding shareholders with a higher dividend, reinforcing the company’s capital-return appeal.
- Neutral Sentiment: Coverage that Costco offers shopping without a membership in limited cases is mainly informational and not likely to materially affect the stock.
- Neutral Sentiment: The Iowa court decision involving a former Costco manager appears to be a legal headline with limited direct impact on the company’s overall financial outlook.
- Negative Sentiment: Bloomberg reported rising plastic input costs may lead to higher prices for consumer goods later this year, which could add inflation pressure to Costco’s retail environment and potentially squeeze margins or demand.
Wall Street Analyst Weigh In
A number of brokerages have weighed in on COST. Evercore set a $1,100.00 price target on Costco Wholesale in a research report on Monday, March 2nd. Deutsche Bank Aktiengesellschaft boosted their price target on 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. HC Wainwright reissued a “buy” rating on shares of Costco Wholesale in a research report on Monday, June 1st. 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 research report on Friday, March 6th. Finally, Mizuho set a $1,100.00 price target on Costco Wholesale in a research report on Monday, June 1st. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Costco Wholesale currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,060.41.
Costco Wholesale Stock Up 0.7%
The firm has a 50-day moving average price of $1,005.62 and a 200 day moving average price of $966.63. 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 company has a market cap of $435.65 billion, a price-to-earnings ratio of 49.41, a P/E/G ratio of 4.76 and a beta of 0.88.
Costco Wholesale (NASDAQ:COST – Get Free Report) last posted its earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same period in the previous year, the company posted $4.28 EPS. Sell-side analysts predict that Costco Wholesale Corporation will post 20.38 EPS for the current year.
Costco Wholesale Increases Dividend
The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were given a $1.47 dividend. The ex-dividend date of this dividend was Friday, May 1st. This is a positive change from Costco Wholesale’s previous quarterly dividend of $1.30. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is currently 29.58%.
Hedge Funds Weigh In On Costco Wholesale
Several institutional investors and hedge funds have recently made changes to their positions in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of Costco Wholesale in the 4th quarter valued at $27,000. Lifetime Wealth Management P.C. acquired a new stake in Costco Wholesale in the fourth quarter valued at $28,000. Mcguire Capital Advisors Inc. acquired a new stake in Costco Wholesale during the 4th quarter worth about $28,000. Hurley Capital LLC grew its holdings in Costco Wholesale by 120.0% during the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock worth $31,000 after acquiring an additional 18 shares during the period. Finally, Entrust Financial LLC acquired a new stake in Costco Wholesale during the 4th quarter worth about $31,000. Institutional investors and hedge funds own 68.48% of the company’s stock.
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.
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