Costco Wholesale (NASDAQ:COST) Shares Up 2.8% – What’s Next?

Shares of Costco Wholesale Corporation (NASDAQ:COST) rose 2.8% during mid-day trading on Monday. The company traded as high as $1,042.56 and last traded at $1,040.55. 3,104,804 shares traded hands during mid-day trading, an increase of 41% from the average daily volume of 2,200,425 shares. The stock had previously closed at $1,012.28.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: New Hampshire store approved: Costco received approval to build a warehouse at Seacoast Landing in Newington, with an opening targeted for 2027. The location should expand Costco’s physical footprint and create another source of membership and sales growth. Costco gets approval to build at Seacoast Landing in Newington
• Positive Sentiment: Delivery partnerships could lift sales: Costco’s broader availability through DoorDash and Uber Eats is expected to attract younger and more convenience-oriented shoppers, increase digital sales and add revenue without materially reducing warehouse traffic. Can Costco’s DoorDash and Uber Eats Expansion Drive Incremental Sales?
• Positive Sentiment: Market-share gains reinforce the value proposition: Costco is reportedly gaining grocery share as consumers seek lower prices amid elevated household expenses. This supports traffic, membership renewal prospects and sales growth. The latest update on the grocery wars is here
• Neutral Sentiment: Dividend payment approaches: Costco is scheduled to pay its final quarterly dividend of 2026 on November 13, providing a modest near-term shareholder return but likely having limited influence on valuation. Costco to pay dividends next week
• Neutral Sentiment: Stock split speculation continues: Analysts note that Costco may not split its shares in 2027; the company has split its stock only a limited number of times, most recently in 2000. A split would improve affordability but would not change the company’s underlying value. Costco Wholesale Stock Is Trading Over $1,000
• Negative Sentiment: ETF selling may weigh on demand: Exchange-traded funds were reported to be net sellers of approximately $75.6 million in COST shares on October 29, creating some short-term supply pressure. ETFs Are Net Sellers of Costco

Wall Street Analyst Weigh In

Several equities analysts recently commented on the company. CICC Research assumed coverage on Costco Wholesale in a research report on Wednesday, October 21st. They set an “outperform” rating and a $1,050.00 price target on the stock. DA Davidson increased their price objective on shares of Costco Wholesale from $1,000.00 to $1,040.00 and gave the company a “neutral” rating in a research report on Friday, September 25th. Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a research note on Monday, September 28th. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of Costco Wholesale from $1,091.00 to $1,079.00 and set a “buy” rating on the stock in a research note on Monday, September 28th. Finally, Weiss Ratings raised shares of Costco Wholesale from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, twenty-four have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Costco Wholesale has an average rating of “Moderate Buy” and an average price target of $1,086.19.

Costco Wholesale Stock Performance

The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. The company has a 50 day moving average of $943.31 and a 200 day moving average of $970.25. The firm has a market cap of $461.10 billion, a price-to-earnings ratio of 50.12, a PEG ratio of 4.32 and a beta of 0.84.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating analysts’ consensus estimates of $6.54 by $0.21. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The firm had revenue of $95.72 billion during the quarter, compared to analyst estimates of $94.97 billion. During the same quarter last year, the firm earned $5.87 EPS. Costco Wholesale’s quarterly revenue was up 11.1% on a year-over-year basis. As a group, equities research analysts expect that Costco Wholesale Corporation will post 22.70 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be paid a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Friday, October 30th. Costco Wholesale’s dividend payout ratio is 28.32%.

Insider Activity at Costco Wholesale

In related news, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the sale, the executive vice president owned 7,134 shares in the company, valued at approximately $6,534,244.62. The trade was a 23.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP William Richard Wilcox sold 1,100 shares of the company’s stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the sale, the executive vice president directly owned 3,094 shares in the company, valued at $2,964,701.74. This represents a 26.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

Hedge funds and other institutional investors have recently modified their holdings of the stock. Contravisory Investment Management Inc. lifted its position in shares of Costco Wholesale by 107.7% during the third quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer’s stock worth $25,000 after purchasing an additional 14 shares during the last quarter. C M Bidwell & Associates Ltd. acquired a new position in Costco Wholesale in the second quarter worth about $28,000. Burk Holdings LLC acquired a new position in Costco Wholesale in the second quarter worth about $30,000. Manning & Napier Advisors LLC bought a new stake in Costco Wholesale in the second quarter valued at about $30,000. Finally, John Boyer Inc. bought a new stake in Costco Wholesale in the third quarter valued at about $32,000. 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 merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.