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

Costco Wholesale Corporation (NASDAQ:COST)’s share price shot up 1.6% during trading on Friday following a stronger than expected earnings report. The stock traded as high as $1,002.50 and last traded at $998.10. 2,688,793 shares traded hands during trading, an increase of 9% from the average session volume of 2,467,042 shares. The stock had previously closed at $982.57.

The retailer reported $4.58 earnings per share for the quarter, beating analysts’ consensus estimates of $4.55 by $0.03. Costco Wholesale had a return on equity of 29.37% and a net margin of 2.99%.The company 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 business earned $4.02 earnings per share. The company’s quarterly revenue was up 9.2% on a year-over-year basis.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were given a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Friday, January 30th. Costco Wholesale’s dividend payout ratio is 27.04%.

Costco Wholesale News Roundup

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 have issued reports on the company. UBS Group set a $1,175.00 price objective on Costco Wholesale in a report on Friday. Telsey Advisory Group increased their target price on shares of Costco Wholesale from $1,100.00 to $1,125.00 and gave the stock an “outperform” rating in a research report on Friday. Oppenheimer lifted their price target on shares of Costco Wholesale from $1,050.00 to $1,100.00 and gave the company an “outperform” rating in a report on Thursday, February 5th. DA Davidson restated a “neutral” rating and issued a $1,000.00 price target on shares of Costco Wholesale in a research report on Friday. Finally, The Goldman Sachs Group decreased their price objective on shares of Costco Wholesale from $1,171.00 to $1,088.00 and set a “buy” rating on the stock in a research note on Friday. Twenty-two investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Costco Wholesale has an average rating of “Moderate Buy” and an average target price of $1,035.35.

Insiders Place Their Bets

In other Costco Wholesale news, EVP Russell D. Miller sold 1,500 shares of the firm’s stock in a transaction dated Friday, January 9th. The shares were 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 in the company, valued at approximately $7,550,476.80. This trade represents a 15.40% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Susan L. Decker sold 458 shares of the business’s 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 completion of the transaction, the director directly owned 8,532 shares of the company’s stock, valued at approximately $8,148,060. This represents a 5.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 6,915 shares of company stock valued at $6,317,097 over the last three months. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

Several hedge funds have recently modified their holdings of COST. LFA Lugano Financial Advisors SA bought a new position in Costco Wholesale in the 2nd quarter valued at $31,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of Costco Wholesale during the fourth quarter worth $27,000. Mcguire Capital Advisors Inc. acquired a new position in shares of Costco Wholesale during the fourth quarter valued at $28,000. 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 acquiring an additional 18 shares during the period. Finally, Entrust Financial LLC bought a new position in Costco Wholesale in the fourth quarter valued at about $31,000. 68.48% of the stock is owned by institutional investors.

Costco Wholesale Stock Performance

The stock has a 50-day moving average of $961.64 and a 200 day moving average of $935.74. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.04 and a quick ratio of 0.53. The stock has a market capitalization of $443.03 billion, a price-to-earnings ratio of 51.90, a price-to-earnings-growth ratio of 4.77 and a beta of 1.01.

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.