Costco Wholesale Corporation (NASDAQ:COST) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Shares of Costco Wholesale Corporation (NASDAQ:COST) have received a consensus recommendation of “Moderate Buy” from the thirty-four brokerages that are currently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, twelve have assigned a hold recommendation and twenty-one have given a buy recommendation to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $996.00.

COST has been the subject of a number of recent analyst reports. BTIG Research initiated coverage on Costco Wholesale in a report on Tuesday, October 14th. They issued a “buy” rating and a $1,115.00 price objective for the company. Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a research report on Monday, December 22nd. Robert W. Baird lowered their price target on Costco Wholesale from $1,125.00 to $1,000.00 and set an “outperform” rating for the company in a research note on Friday, December 12th. Deutsche Bank Aktiengesellschaft set a $1,044.00 price target on shares of Costco Wholesale in a research report on Thursday, January 8th. Finally, Northcoast Research set a $1,100.00 price objective on shares of Costco Wholesale and gave the company a “buy” rating in a report on Wednesday, December 24th.

Costco Wholesale Stock Down 1.0%

Shares of NASDAQ:COST opened at $960.78 on Thursday. The company has a 50 day moving average of $904.48 and a 200-day moving average of $929.71. Costco Wholesale has a one year low of $844.06 and a one year high of $1,078.23. The stock has a market cap of $426.46 billion, a price-to-earnings ratio of 51.46, a P/E/G ratio of 5.81 and a beta of 1.02. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.04 and a quick ratio of 0.53.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings data on Thursday, December 11th. The retailer reported $4.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.27 by $0.07. The firm had revenue of $67.31 billion for the quarter, compared to analysts’ expectations of $67.03 billion. Costco Wholesale had a net margin of 2.96% and a return on equity of 29.35%. The business’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same period last year, the firm earned $4.04 earnings per share. On average, sell-side analysts forecast that Costco Wholesale will post 18.03 earnings per share for the current year.

Costco Wholesale Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, February 13th. Stockholders of record on Friday, January 30th will be issued a $1.30 dividend. The ex-dividend date of this dividend is Friday, January 30th. This represents a $5.20 annualized dividend and a dividend yield of 0.5%. Costco Wholesale’s payout ratio is 27.85%.

Key Costco Wholesale News

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

• Positive Sentiment: Balance-sheet strength supports durability vs. retail headwinds — analysts point to Costco’s low debt, cash-rich position and rising membership fees as reasons it can outgrow sector pressures. Can Costco Outgrow Retail Headwinds? The Balance Sheet Says Yes
• Positive Sentiment: Upcoming dividend payment provides income support and may reduce near-term volatility for yield-focused holders — Costco will pay its next quarterly dividend on Feb. 13. Costco to pay dividends on February 13; Here’s how much 100 COST shares will earn
• Positive Sentiment: Momentum and bull-case coverage reinforce investor interest — multiple outlets highlight Costco as a long-term momentum/growth name and outline expansion and membership-driven revenue growth. Why Costco (COST) is a Top Momentum Stock for the Long-Term
• Positive Sentiment: High-profile endorsement: Jim Cramer publicly reiterated his favorable view, which can reassure retail investors amid volatility. Jim Cramer Says “I Want You to Stay With Costco, I Still Like It”
• Neutral Sentiment: Ancillary product initiatives (e.g., Costco selling gold bars) have produced interesting niche returns but are unlikely to move top-line materially — more of a PR/ancillary revenue positive. If you bought a gold bar from Costco in 2025, here’s your return now
• Neutral Sentiment: Ongoing bullish thinkpieces and dividend-stock roundups keep investor attention but mostly restate known long-term strengths (membership model, steady same-store sales). Can This Unstoppable Stock Join the $1 Trillion Club in 5 Years?
• Negative Sentiment: Legal headline risk: a federal lawsuit alleges Costco mislabels its $4.99 rotisserie chickens as “preservative-free” despite using additives; media coverage and analysis raise potential reputational and litigation concerns that can pressure the stock near term. Costco accused of deceiving shoppers over popular $5 rotisserie chickens
• Negative Sentiment: Follow-up coverage examining valuation impact of the rotisserie-chicken suit and possible class-action costs could amplify volatility if legal exposure expands. Costco Rotisserie Chicken Lawsuit And What It Could Mean For Valuation

Insiders Place Their Bets

In other Costco Wholesale news, Director Susan L. Decker sold 458 shares of the stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $955.00, for a total value of $437,390.00. Following the completion of the sale, the director directly owned 8,532 shares in the company, valued at $8,148,060. This represents a 5.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Javier Polit sold 558 shares of the firm’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 sale, the executive vice president directly owned 10,190 shares in the company, valued at approximately $8,792,849.10. This represents a 5.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 9,315 shares of company stock worth $8,549,409 over the last 90 days. 0.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Costco Wholesale

A number of large investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its position in Costco Wholesale by 1.7% in the 2nd quarter. Vanguard Group Inc. now owns 43,356,271 shares of the retailer’s stock valued at $42,920,107,000 after acquiring an additional 711,560 shares in the last quarter. State Street Corp raised its stake in shares of Costco Wholesale by 0.5% in the 2nd quarter. State Street Corp now owns 18,325,416 shares of the retailer’s stock valued at $18,141,062,000 after purchasing an additional 90,107 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Costco Wholesale by 1.5% in the second quarter. Geode Capital Management LLC now owns 10,275,056 shares of the retailer’s stock valued at $10,124,263,000 after purchasing an additional 150,844 shares in the last quarter. Norges Bank acquired a new position in shares of Costco Wholesale during the second quarter worth about $5,692,035,000. Finally, Invesco Ltd. boosted its position in shares of Costco Wholesale by 9.8% during the second quarter. Invesco Ltd. now owns 4,291,557 shares of the retailer’s stock worth $4,248,384,000 after buying an additional 383,887 shares during the period. 68.48% of the stock is owned by institutional investors.

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.