Costco Wholesale (NASDAQ:COST) Shares Up 1.6% on Earnings Beat

Costco Wholesale Corporation (NASDAQ:COST) shares rose 1.6% during mid-day trading on Friday following a better than expected earnings announcement. The stock traded as high as $1,002.50 and last traded at $998.10. Approximately 2,688,793 shares traded hands during mid-day trading, an increase of 9% from the average daily volume of 2,467,042 shares. The stock had previously closed at $982.57.

The retailer reported $4.58 EPS for the quarter, topping analysts’ consensus estimates of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 29.37%. The business had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. During the same period in the previous year, the firm earned $4.02 EPS. The business’s revenue for the quarter was up 9.2% on a year-over-year basis.

Costco Wholesale Dividend Announcement

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

More Costco Wholesale News

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

• Positive Sentiment: Q2 double‑beat — Costco reported revenue of ~$69.6B and GAAP EPS of $4.58, with comp‑store strength and membership fee growth that underpin near‑term sales momentum. This is the main catalyst supporting the rally. Costco Wholesale beats quarterly comparable sales estimates
• Positive Sentiment: Analyst upgrades and higher price targets — several brokers (notably a large Street high by BMO cited in coverage) raised targets and reiterated outperform/overweight views, adding upward pressure. Costco Stock Scores New Street‑High Price Target
• Positive Sentiment: Capital returns & balance‑sheet strength — commentary and notes on buybacks, a rising cash pile and the “special dividend” thesis are attracting income/return‑focused investors and support further upside. Costco Wholesale: Buy Now, Get Paid Later as Cash and Returns Build
• Positive Sentiment: Digital and membership momentum — online sales growth (~22.6%) and rising membership income are cited on the call as durable drivers of mix and margins, supporting investor confidence. Costco Digital Innovations Fuel 22.6% Online Growth
• Neutral Sentiment: Mixed analyst moves — while many raised targets, a few (e.g., Goldman) trimmed targets even as they kept buy calls; that creates a mix of conviction levels among institutional holders. Goldman Sachs adjusts price target on Costco
• Neutral Sentiment: Muted market reaction — despite the beat, some headlines note a tepid price move (and some pre‑market weakness) as investors weigh valuation metrics versus growth. That can lead to intraday volatility. Costco Stock Exhibits Muted Reaction Amid Double‑Beat Earnings Report
• Negative Sentiment: Valuation concerns and “red flags” narrative — some outlets argue the stock is expensive (high P/E, PEG) and list risks that could cap upside; those narratives are pressuring more value‑sensitive investors. Is Costco Too Expensive? 3 Red Flags That Could Send Shares Sliding

Wall Street Analyst Weigh In

A number of research analysts recently commented on COST shares. Northcoast Research set a $1,100.00 target price on Costco Wholesale and gave the company a “buy” rating in a research note on Wednesday, December 24th. Truist Financial boosted their price target on shares of Costco Wholesale from $926.00 to $977.00 and gave the company a “hold” rating in a report on Friday. DA Davidson restated a “neutral” rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a research note on Friday. Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a research report on Monday, December 22nd. Finally, Mizuho upped their target price on shares of 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. Twenty-two analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $1,035.35.

Insider Activity

In other news, EVP Russell D. Miller sold 1,500 shares of the stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $916.32, for a total value of $1,374,480.00. Following the completion of the sale, the executive vice president owned 8,240 shares of the company’s stock, valued at approximately $7,550,476.80. This represents a 15.40% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Javier Polit sold 2,049 shares of the business’s stock in a transaction that occurred on Monday, December 29th. The stock was sold at an average price of $867.21, for a total value of $1,776,913.29. Following the sale, the executive vice president owned 10,748 shares of the company’s stock, valued at approximately $9,320,773.08. This represents a 16.01% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 6,915 shares of company stock valued at $6,317,097. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

Several hedge funds have recently added to or reduced their stakes in the business. Union Savings Bank bought a new stake in Costco Wholesale during the 4th quarter worth approximately $2,040,000. Cedarwood Wealth LLC bought a new position in shares of Costco Wholesale during the fourth quarter valued at $323,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of Costco Wholesale during the fourth quarter worth $27,000. Worthington Financial Partners LLC bought a new stake in Costco Wholesale during the fourth quarter valued at $1,173,000. Finally, Bayban acquired a new stake in Costco Wholesale during the 4th quarter worth about $347,000. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Costco Wholesale Stock Performance

The stock has a market capitalization of $443.03 billion, a P/E ratio of 51.90, a price-to-earnings-growth ratio of 4.70 and a beta of 1.01. 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 50-day moving average price of $961.64 and a two-hundred day moving average price of $936.05.

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.