Costco Wholesale (NASDAQ:COST) Trading 1.3% Higher – Should You Buy?

Shares of Costco Wholesale Corporation (NASDAQ:COST) rose 1.3% on Tuesday . The company traded as high as $998.88 and last traded at $998.43. Approximately 1,646,968 shares traded hands during trading, a decline of 34% from the average daily volume of 2,500,733 shares. The stock had previously closed at $986.02.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Citi raised its price target to $1,000 (from $990), citing modest same‑store sales and an earnings beat — a near‑term vote of confidence from an influential sell‑side shop. Citi Raises Costco (COST) Price Target to $1,000 from $990
• Positive Sentiment: Supreme Court action on IEEPA tariffs and FedEx’s statement that it will return any tariff refunds reduces a key cost/uncertainty risk for import‑reliant retailers like Costco. That legal resolution is supportive for margins and inventory planning. FedEx says it will return to customers any refunds it gets back from Trump’s illegal tariffs
• Positive Sentiment: Local expansion: municipal/state approvals for new Costco locations in Lawrence and Southborough signal continued store growth and membership acquisition opportunities in those markets. (Supports long‑term revenue footprint.) A new Costco will be built in Lawrence — the city’s first. Here’s what to know Costco proposal in Southborough earns state approval. What’s next
• Neutral Sentiment: Analyst and retail‑sector commentary (Zacks, TipRanks, The Motley Fool) highlights Costco as a defensive/quality retail play with a recent valuation reset that some view as a buying opportunity — useful context but not an immediate catalyst. Costco and 3 More Discount Retail Stocks Investors Should Watch Now Costco Stock (COST) Is Still a Great Buy after Valuation Reset
• Neutral Sentiment: Operational/consumer items (new food‑court menu, expanded brand assortment) support traffic and membership retention but are incremental rather than market moving. Costco launches new food court treat to rival McDonalds
• Negative Sentiment: Macro and tariff risks remain a concern per deeper analyses that argue external policy or import disruptions could still pressure margins or force SKU changes — a watch item for investors despite the recent court ruling. Costco: Macro/Tariff Risks Persist – Further Consolidation Likely
• Negative Sentiment: Legal risk: two class‑action suits over the $4.99 rotisserie chicken could create reputational noise and small legal costs; unlikely to be material to long‑term earnings but a near‑term headline risk. Costco’s $4.99 Rotisserie Chicken Is Facing 2 Class-Action Lawsuits

Analyst Ratings Changes

A number of analysts have recently weighed in on COST shares. Mizuho raised their target price on Costco Wholesale from $1,000.00 to $1,065.00 and gave the company an “outperform” rating in a research note on Tuesday, February 3rd. HSBC lowered their price objective on shares of Costco Wholesale from $1,060.00 to $1,045.00 and set a “hold” rating for the company in a research report on Friday, December 12th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Costco Wholesale in a research note on Monday, December 29th. BMO Capital Markets reiterated an “outperform” rating on shares of Costco Wholesale in a research report on Friday, December 12th. Finally, Rothschild & Co Redburn raised their price target on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the company a “neutral” rating in a report on Tuesday, February 17th. Twenty-one research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Costco Wholesale presently has an average rating of “Moderate Buy” and an average price target of $1,008.07.

Costco Wholesale Stock Down 0.8%

The firm’s 50 day moving average price is $945.05 and its 200-day moving average price is $935.19. The company has a current ratio of 1.04, a quick ratio of 0.53 and a debt-to-equity ratio of 0.19. The company has a market cap of $437.98 billion, a P/E ratio of 52.85, a price-to-earnings-growth ratio of 5.24 and a beta of 1.01.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings data on Thursday, December 11th. The retailer reported $4.34 earnings per share for the quarter, beating the consensus estimate of $4.27 by $0.07. Costco Wholesale had a net margin of 2.96% and a return on equity of 29.35%. The business had revenue of $67.31 billion for the quarter, compared to analyst estimates of $67.03 billion. During the same period in the prior year, the business posted $4.04 earnings per share. Costco Wholesale’s revenue was up 8.3% compared to the same quarter last year. As a group, equities research analysts expect that Costco Wholesale Corporation will post 18.03 EPS for the current year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, January 30th were paid a dividend of $1.30 per share. The ex-dividend date of this dividend was Friday, January 30th. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.5%. Costco Wholesale’s payout ratio is 27.85%.

Insiders Place Their Bets

In other news, EVP Javier Polit sold 558 shares of the company’s stock in a transaction dated Tuesday, December 30th. The stock was sold at an average price of $862.89, for a total value of $481,492.62. Following the completion of the sale, the executive vice president directly owned 10,190 shares of the company’s stock, valued at $8,792,849.10. This represents a 5.19% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP James C. Klauer sold 1,500 shares of the stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $939.00, for a total transaction of $1,408,500.00. Following the completion of the sale, the executive vice president owned 44,837 shares in the company, valued at $42,101,943. This represents a 3.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 6,915 shares of company stock valued at $6,317,097 in the last ninety days. 0.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Costco Wholesale

Several large investors have recently bought and sold shares of the company. Oak Grove Capital LLC lifted its holdings in Costco Wholesale by 1.0% during the fourth quarter. Oak Grove Capital LLC now owns 19,398 shares of the retailer’s stock worth $16,728,000 after acquiring an additional 200 shares in the last quarter. Anchor Investment Management LLC increased its holdings in shares of Costco Wholesale by 2.3% in the fourth quarter. Anchor Investment Management LLC now owns 8,475 shares of the retailer’s stock worth $7,309,000 after acquiring an additional 188 shares in the last quarter. BDFS Capital LLC bought a new stake in shares of Costco Wholesale in the fourth quarter worth about $681,000. Banque Transatlantique SA raised its position in shares of Costco Wholesale by 3.3% during the fourth quarter. Banque Transatlantique SA now owns 211,962 shares of the retailer’s stock worth $183,569,000 after purchasing an additional 6,710 shares during the period. Finally, Tempo Wealth LLC bought a new position in shares of Costco Wholesale during the 4th quarter valued at about $3,949,000. Institutional investors 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.