Costco Wholesale (NASDAQ:COST) Trading 1.1% Higher on Analyst Upgrade

Costco Wholesale Corporation (NASDAQ:COST) shares rose 1.1% during mid-day trading on Thursday after Oppenheimer raised their price target on the stock from $1,050.00 to $1,100.00. Oppenheimer currently has an outperform rating on the stock. Costco Wholesale traded as high as $1,000.95 and last traded at $989.29. Approximately 2,838,574 shares traded hands during trading, an increase of 3% from the average daily volume of 2,760,981 shares. The stock had previously closed at $978.35.

Other equities analysts have also recently issued reports about the stock. Sanford C. Bernstein boosted their price objective on shares of Costco Wholesale from $1,134.00 to $1,146.00 and gave the company an “outperform” rating in a research note on Friday, December 12th. Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a research note on Monday, December 22nd. Deutsche Bank Aktiengesellschaft set a $1,044.00 price target on shares of Costco Wholesale in a report on Thursday, January 8th. BTIG Research started coverage on Costco Wholesale in a report on Tuesday, October 14th. They issued a “buy” rating and a $1,115.00 price objective on the stock. Finally, HSBC cut their target price on Costco Wholesale from $1,060.00 to $1,045.00 and set a “hold” rating for the company in a research note on Friday, December 12th. Twenty-one equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $1,006.19.

Insiders Place Their Bets

In related news, EVP Teresa A. Jones sold 850 shares of the stock in a transaction dated Wednesday, January 21st. The shares were sold at an average price of $986.26, for a total value of $838,321.00. Following the sale, the executive vice president directly owned 4,228 shares of the company’s stock, valued at approximately $4,169,907.28. This represents a 16.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Susan L. Decker sold 458 shares of Costco Wholesale stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $955.00, for a total transaction of $437,390.00. Following the transaction, the director owned 8,532 shares of the company’s stock, valued at approximately $8,148,060. The trade was a 5.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 6,915 shares of company stock worth $6,317,097. 0.10% of the stock is owned by company insiders.

Key Costco Wholesale News

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

• Positive Sentiment: Company-released January sales were strong: net sales of $21.33 billion, up 9.3% year-over-year, with healthy comp-store and digital growth — a clear driver for the rally. Costco January Sales Results
• Positive Sentiment: Oppenheimer raised its price target to $1,100 and kept an Outperform rating — a sizable upside that likely boosted investor sentiment. Oppenheimer Raises PT to $1,100
• Positive Sentiment: Mizuho and other outlets have also lifted targets and cited membership trends rebounding and digital strength, supporting further upside expectations. Mizuho Raises Target
• Positive Sentiment: Sector flows into consumer staples (BofA data) and a stretch of positive analyst commentary have lifted consensus momentum and buy-side interest. BofA Flags Inflows into Staples
• Neutral Sentiment: DA Davidson reaffirmed a “neutral” rating with a $1,000 target — modest upside vs. current levels, so less directional impact. DA Davidson Reaffirms Neutral
• Neutral Sentiment: Wells Fargo lifted its target to $950 but kept an Equal Weight rating, implying limited near-term upside from that shop. Wells Fargo PT Raised to $950
• Negative Sentiment: Costco recalled pastries sold in California over undeclared nuts — a near-term operational/headline risk that can dent consumer confidence and traffic. Costco Recalls Pastries
• Negative Sentiment: A lawsuit challenging Costco’s “no preservatives” labeling on rotisserie chicken introduces legal/PR risk that could lead to costs or settlements. Lawsuit on Labeling
• Negative Sentiment: Some outlets and analysts warn that consumer staples appear frothy and that Costco’s lofty P/E could limit upside if growth disappoints. Barron’s on Staples Valuation

Institutional Trading of Costco Wholesale

Institutional investors and hedge funds have recently made changes to their positions in the stock. LFA Lugano Financial Advisors SA purchased a new stake in shares of Costco Wholesale during the second quarter worth about $31,000. Hurley Capital LLC lifted its stake in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock valued at $31,000 after buying an additional 18 shares during the period. Abich Financial Wealth Management LLC acquired a new stake in Costco Wholesale during the third quarter worth approximately $34,000. Collier Financial purchased a new stake in Costco Wholesale in the 3rd quarter worth approximately $35,000. Finally, Joseph Group Capital Management acquired a new position in Costco Wholesale in the 4th quarter valued at $33,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Price Performance

The company has a market capitalization of $439.12 billion, a price-to-earnings ratio of 52.99, a P/E/G ratio of 5.85 and a beta of 1.01. The company has a fifty day simple moving average of $912.84 and a two-hundred day simple moving average of $930.22. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.53 and a current ratio of 1.04.

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

Costco Wholesale Announces Dividend

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

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.