Deutsche Bank Aktiengesellschaft assumed coverage on shares of Costco Wholesale (NASDAQ:COST – Free Report) in a report published on Thursday morning, MarketBeat.com reports. The brokerage issued a buy rating on the retailer’s stock.
Other equities research analysts also recently issued research reports about the stock. BMO Capital Markets restated an “outperform” rating on shares of Costco Wholesale in a research report on Friday, December 12th. Morgan Stanley cut their target price on Costco Wholesale from $1,225.00 to $1,130.00 and set an “overweight” rating for the company in a research note on Friday, September 26th. Roth Capital set a $769.00 price target on Costco Wholesale and gave the company a “sell” rating in a report on Monday, December 15th. Hovde Group started coverage on Costco Wholesale in a report on Tuesday, November 18th. They set a “market perform” rating and a $16.00 price objective on the stock. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Costco Wholesale in a research report on Monday, December 29th. Twenty-one analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $996.00.
Read Our Latest Analysis on Costco Wholesale
Costco Wholesale Stock Up 1.0%
Costco Wholesale (NASDAQ:COST – Get Free Report) last issued its earnings results on Thursday, December 11th. The retailer reported $4.34 earnings per share for the quarter, beating the consensus estimate of $4.27 by $0.07. Costco Wholesale had a net margin of 2.96% and a return on equity of 29.35%. The business had revenue of $67.31 billion for the quarter, compared to the consensus estimate of $67.03 billion. During the same quarter in the previous year, the firm earned $4.04 earnings per share. The business’s quarterly revenue was up 8.3% compared to the same quarter last year. On average, 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 was paid on Friday, November 14th. Stockholders of record on Friday, October 31st were paid a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Friday, October 31st. Costco Wholesale’s payout ratio is 27.85%.
Insider Buying and Selling at Costco Wholesale
In related news, EVP Javier Polit sold 558 shares of the stock in a transaction dated Tuesday, December 30th. The shares were 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 of the company’s stock, valued at approximately $8,792,849.10. This represents a 5.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP William Richard Wilcox sold 2,400 shares of the firm’s stock in a transaction dated Friday, November 7th. The shares were sold at an average price of $930.13, for a total transaction of $2,232,312.00. Following the transaction, the executive vice president owned 2,000 shares of the company’s stock, valued at $1,860,260. This trade represents a 54.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,946 shares of company stock valued at $8,175,048 over the last 90 days. 0.10% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On Costco Wholesale
A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Birchbrook Inc. lifted its holdings in Costco Wholesale by 2.5% in the 1st quarter. Birchbrook Inc. now owns 456 shares of the retailer’s stock valued at $431,000 after purchasing an additional 11 shares in the last quarter. Ridgewood Investments LLC raised its position in shares of Costco Wholesale by 7.4% in the second quarter. Ridgewood Investments LLC now owns 159 shares of the retailer’s stock valued at $157,000 after buying an additional 11 shares during the last quarter. Wagner Wealth Management LLC raised its position in shares of Costco Wholesale by 3.4% in the second quarter. Wagner Wealth Management LLC now owns 330 shares of the retailer’s stock valued at $326,000 after buying an additional 11 shares during the last quarter. Hobbs Wealth Management LLC lifted its stake in shares of Costco Wholesale by 4.4% during the second quarter. Hobbs Wealth Management LLC now owns 262 shares of the retailer’s stock valued at $259,000 after buying an additional 11 shares during the period. Finally, Busey Bank boosted its position in Costco Wholesale by 0.4% during the third quarter. Busey Bank now owns 2,651 shares of the retailer’s stock worth $2,454,000 after acquiring an additional 11 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company’s stock.
Key Headlines Impacting Costco Wholesale
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Company-released December sales: net sales of $29.86B (up 8.5% yr/yr) and companywide comps +7.0%, with digitally-enabled sales up ~19%. This is the primary driver for the bullish move. Costco Reports December Sales Results
- Positive Sentiment: E-commerce acceleration: online/digitally-enabled sales jumped ~18–19% in December, boosting margins and omnichannel momentum that investors favor. Costco Stock Jumps as Online Sales Growth Reaches 18% in December
- Positive Sentiment: Analyst support and upgrades (Mizuho, Deutsche Bank mentions, Telsey reaffirming outperform) are lifting sentiment and providing upside to price targets. Costco Upgraded at Mizuho
- Positive Sentiment: Political/tariff developments: betting markets and reports increasingly price in relief from new tariffs — a potential tailwind for Costco’s import-heavy model. Betting Markets Predict 75% Chance Supreme Court Blocks Trump Tariffs
- Neutral Sentiment: Local expansion: city-level site news (Greenbrier Mall) signals ongoing real-estate pipeline but is not material yet to national results. Costco Could Be Coming to Greenbrier Mall
- Neutral Sentiment: Street commentary: portfolio managers and media guests (Wall Street Alliance video backing Costco) highlight execution focus — supportive but not a direct earnings catalyst. Aadil Zaman Backs Costco
- Negative Sentiment: Valuation concerns: outlets warn Costco trades near elevated multiples after years of outperformance, suggesting limited upside if growth slows — a short-term headwind for multiples. How Retailer Costco Can Drop
- Negative Sentiment: Media critique: high-profile commentator Jim Cramer said COST “should be repudiated this quarter,” which can amplify short-term selling despite longer-term bullish data. Jim Cramer: Costco Should be Repudiated
Costco Wholesale Company Profile
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.
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