Costco Wholesale’s (COST) “Buy” Rating Reaffirmed at TD Cowen

Costco Wholesale (NASDAQ:COST)‘s stock had its “buy” rating reaffirmed by equities research analysts at TD Cowen in a note issued to investors on Wednesday,Benzinga reports. They presently have a $1,175.00 price objective on the retailer’s stock. TD Cowen’s target price indicates a potential upside of 21.66% from the stock’s current price.

Several other equities analysts have also weighed in on the stock. Evercore set a $1,100.00 target price on shares of Costco Wholesale in a report on Monday, March 2nd. Sanford C. Bernstein raised their price objective on Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an “outperform” rating in a research report on Friday, May 29th. Bank of America upped their target price on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Gordon Haskett increased their target price on Costco Wholesale from $1,000.00 to $1,100.00 in a research note on Tuesday, February 3rd. Finally, JPMorgan Chase & Co. raised their target price on Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an “overweight” rating in a report on Friday, April 17th. Twenty-two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Costco Wholesale currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,060.41.

Costco Wholesale Trading Up 1.2%

COST traded up $11.53 on Wednesday, reaching $965.80. 419,286 shares of the company’s stock were exchanged, compared to its average volume of 2,152,833. The company’s 50 day moving average is $1,007.23 and its 200-day moving average is $963.04. The company has a market cap of $428.48 billion, a price-to-earnings ratio of 48.58, a PEG ratio of 4.59 and a beta of 0.88. Costco Wholesale has a twelve month low of $844.06 and a twelve month high of $1,096.50. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.72%. The business had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same period last year, the firm earned $4.28 earnings per share. Equities analysts predict that Costco Wholesale will post 20.36 earnings per share for the current year.

Insider Activity at Costco Wholesale

In related news, EVP Claudine Adamo sold 730 shares of the business’s stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total value of $732,204.60. Following the transaction, the executive vice president owned 6,121 shares in the company, valued at approximately $6,139,485.42. The trade was a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of Costco Wholesale during the fourth quarter worth about $27,000. Lifetime Wealth Management P.C. acquired a new position in shares of Costco Wholesale during the fourth quarter valued at $28,000. Mcguire Capital Advisors Inc. acquired a new position in Costco Wholesale during the 4th quarter valued at about $28,000. Hurley Capital LLC boosted its position in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock worth $31,000 after buying an additional 18 shares during the period. Finally, Entrust Financial LLC acquired a new position in Costco Wholesale during the 4th quarter worth $31,000. Institutional investors own 68.48% of the company’s stock.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Costco reported another strong quarter, with double-digit revenue growth, solid comparable sales, higher traffic, bigger basket sizes, and continued strength in memberships and digital operations. Jefferies said the company’s value-focused model and membership growth continue to support the outlook. Article Title
• Positive Sentiment: Costco’s gas business is drawing more traffic, with reports of record-breaking fuel sales as higher gasoline prices push shoppers to its cheaper pumps. That supports store visits and overall sales momentum. Article Title
• Positive Sentiment: Analyst commentary remains constructive overall, with brokerages maintaining a “Moderate Buy” consensus and DA Davidson calling Costco a “best-of-breed” operator, underscoring confidence in its long-term fundamentals. Article Title
• Neutral Sentiment: Several articles noted that Costco continues to outperform over the long term, including a piece highlighting how much a $10,000 investment would have grown over 10 years. That is supportive of the investment case, but it is not a near-term catalyst. Article Title
• Negative Sentiment: Despite the strong quarter, investors are worried Costco’s valuation is still too rich, with several reports saying the stock leaves little room for error after its post-earnings slump. Article Title
• Negative Sentiment: Coverage also pointed to the shares falling after earnings and said the recent pullback reflects concern that even strong sales growth may not be enough to justify the premium multiple right now. Article Title

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.