Costco Wholesale (NASDAQ:COST) Issues Quarterly Earnings Results

Costco Wholesale (NASDAQ:COST) announced its quarterly earnings results on Thursday. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.98 by ($0.05), FiscalAI reports. The business had revenue of $70.53 billion during the quarter, compared to analyst estimates of $69.68 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%.

Costco Wholesale Trading Down 0.8%

COST traded down $8.49 during trading on Thursday, reaching $995.20. 2,712,824 shares of the stock traded hands, compared to its average volume of 2,103,975. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The stock’s 50-day moving average is $1,008.29 and its 200 day moving average is $962.02. Costco Wholesale has a 12 month low of $844.06 and a 12 month high of $1,096.50. The stock has a market capitalization of $441.52 billion, a PE ratio of 51.75, a P/E/G ratio of 4.93 and a beta of 0.92.

Costco Wholesale Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were issued a $1.47 dividend. The ex-dividend date 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 yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is presently 30.58%.

Analyst Ratings Changes

Several analysts recently weighed in on COST shares. UBS Group boosted their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a “buy” rating in a research note on Wednesday, May 20th. Telsey Advisory Group raised their target price on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an “outperform” rating in a research report on Thursday, April 9th. Gordon Haskett upped their price target on Costco Wholesale from $1,000.00 to $1,100.00 in a research report on Tuesday, February 3rd. Daiwa Securities Group increased their price target on Costco Wholesale from $917.00 to $975.00 and gave the company a “neutral” rating in a research note on Tuesday, March 10th. Finally, Oppenheimer increased their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an “outperform” rating in a research note on Tuesday, May 19th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $1,052.60.

Insider Buying and Selling at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of the business’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 transaction, the executive vice president directly owned 6,121 shares of the company’s stock, valued at $6,139,485.42. The trade was a 10.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

A number of hedge funds have recently added to or reduced their stakes in COST. Brighton Jones LLC grew its position in shares of Costco Wholesale by 12.3% during the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer’s stock worth $18,165,000 after buying an additional 2,172 shares during the period. Revolve Wealth Partners LLC grew its holdings in Costco Wholesale by 13.1% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer’s stock worth $1,029,000 after purchasing an additional 130 shares during the period. Sivia Capital Partners LLC grew its holdings in Costco Wholesale by 4.5% in the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer’s stock worth $3,814,000 after purchasing an additional 165 shares during the period. Pinnacle Wealth Planning Services Inc. increased its stake in Costco Wholesale by 1.1% in the second 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 in the last quarter. Finally, Schnieders Capital Management LLC. increased its stake in Costco Wholesale by 2.2% in the second 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 in the last quarter. 68.48% of the stock is currently owned by institutional investors.

Costco Wholesale News Roundup

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

• Positive Sentiment: Analysts and recent previews point to another solid quarter, with Costco’s monthly sales already showing accelerating momentum and Wall Street expectations calling for continued earnings and revenue growth. Article Title
• Positive Sentiment: Costco continues to be viewed as a defensive retail winner, supported by high membership renewal rates, strong app engagement, and a model that benefits from inflation and higher gas prices drawing shoppers into stores. Article Title
• Positive Sentiment: CEO Ron Vachris said AI is not replacing workers at Costco, but “elevating” them, reinforcing the company’s people-first, service-oriented culture that investors often associate with long-term customer loyalty. Article Title
• Neutral Sentiment: Several previews framed Costco’s earnings as a major test for the consumer and the broader retail sector, but the market appears to be waiting for actual results before making a bigger move. Article Title
• Negative Sentiment: Shares have paused near record levels ahead of earnings, with some commentary saying the stock’s premium valuation makes it vulnerable if results or guidance merely meet expectations instead of beating them. Article Title
• Negative Sentiment: Broader market headlines also showed futures weakening earlier in the day, which can add pressure to a stock already trading with a high bar ahead of earnings. Article Title

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.