Costco Wholesale’s (COST) “Buy” Rating Reiterated at BTIG Research

BTIG Research reaffirmed their buy rating on shares of Costco Wholesale (NASDAQ:COST) in a research note published on Thursday morning,Benzinga reports. They currently have a $1,125.00 price objective on the retailer’s stock.

Several other research analysts have also recently issued reports on COST. Truist Financial upped their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a research report on Friday, May 29th. The Goldman Sachs Group raised their target price on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. DA Davidson restated a “neutral” rating and set a $1,000.00 target price on shares of Costco Wholesale in a research note on Thursday, June 4th. Citigroup started coverage on Costco Wholesale in a report on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price target for the company. Finally, Roth Capital increased their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a research note on Friday, May 29th. Twenty-one analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $1,056.90.

Costco Wholesale Stock Performance

NASDAQ:COST opened at $915.74 on Thursday. Costco Wholesale has a 12 month low of $844.06 and a 12 month high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The firm has a market capitalization of $406.11 billion, a PE ratio of 46.06, a price-to-earnings-growth ratio of 3.80 and a beta of 0.86. The business’s fifty day moving average price is $943.58 and its 200 day moving average price is $977.75.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were issued a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is presently 29.58%.

Insider Activity at Costco Wholesale

In other news, Director Kenneth Denman sold 885 shares of the business’s stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares of the company’s stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

Hedge funds have recently added to or reduced their stakes in the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale in the 4th quarter valued at $27,000. Lifetime Wealth Management P.C. acquired a new position in Costco Wholesale in the 4th quarter valued at $28,000. C M Bidwell & Associates Ltd. purchased a new position in Costco Wholesale during the 2nd quarter worth $28,000. Mcguire Capital Advisors Inc. purchased a new position in Costco Wholesale during the 4th quarter worth $28,000. Finally, Burk Holdings LLC acquired a new stake in shares of Costco Wholesale in the 2nd quarter worth $30,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Key Costco Wholesale News

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

• Positive Sentiment: Strong August sales: Net sales increased 9.9% year over year, with comparable sales rising across regions and digitally enabled sales advancing 17.9%. The figures point to resilient member demand and continued e-commerce momentum. Costco’s August Sales Rise 9.9% as Digital Growth Stays Strong
• Positive Sentiment: Analyst support remains broad: BTIG reiterated a Buy rating with a $1,125 target, while Bank of America maintained its Buy rating and $1,200 target. Analysts cited resilient core performance, market-share gains, and higher earnings estimates. BTIG Reaffirms Buy on Costco
• Positive Sentiment: Long-term shareholder appeal: Commentary highlighted Costco’s consistent dividend growth since 2004, membership model, customer loyalty, and potential for continued earnings expansion.
• Neutral Sentiment: Store expansion: Costco is reportedly considering a new location in Thompson’s Station, Tennessee, supporting its long-term warehouse growth strategy, although the potential site has no immediate earnings impact.
• Neutral Sentiment: Mixed analyst valuation signals: DA Davidson reaffirmed a Neutral rating with a $1,000 target, while Bernstein retained a Buy rating but lowered its target to $1,144, indicating less room for upside despite confidence in the business.
• Negative Sentiment: Valuation concerns: Jim Cramer and other commentators argued that COST trades at roughly 43–49 times earnings, leaving the stock vulnerable if growth slows or results merely meet expectations. Cramer Says Costco at 49 Times Earnings Is the Mistake Loyal Shoppers Keep Making
• Negative Sentiment: Regulatory risk: The Department of Justice expanded a beef-pricing antitrust inquiry to Costco, seeking information on prices, costs, margins, purchasing, and supply-chain practices. Potential compliance costs or scrutiny could pressure sentiment. US DOJ Widens Beef Price Inquiry
• Negative Sentiment: Costco Next shutdown: The company’s online marketplace reportedly went offline without notice, raising questions about its digital strategy, although the platform is not viewed as central to Costco’s core business. Costco Next Online Marketplace Shut Down

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.