Costco Wholesale (NASDAQ:COST) Stock Price Target Lowered at Jefferies Financial Group

Costco Wholesale (NASDAQ:COST) had its target price trimmed by Jefferies Financial Group from $1,130.00 to $1,100.00 in a research note released on Friday.

Other equities research analysts also recently issued research reports about the stock. Citigroup initiated coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 price objective for the company. BMO Capital Markets reaffirmed an “outperform” rating on shares of Costco Wholesale in a report on Friday. Sanford C. Bernstein decreased their price target on Costco Wholesale from $1,144.00 to $1,143.00 and set an “outperform” rating for the company in a research note on Friday. The Goldman Sachs Group raised their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a “buy” rating in a research note on Friday, May 29th. Finally, Weiss Ratings lowered Costco Wholesale from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 2nd. Twenty-two investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Costco Wholesale has a consensus rating of “Moderate Buy” and a consensus target price of $1,045.67.

Costco Wholesale Trading Up 2.9%

NASDAQ:COST opened at $922.77 on Friday. The business’s 50-day moving average is $933.96 and its two-hundred day moving average is $967.86. The firm has a market capitalization of $409.23 billion, a PE ratio of 44.45, a price-to-earnings-growth ratio of 3.76 and a beta of 0.86. 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.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, topping the consensus estimate of $6.54 by $0.21. The company had revenue of $95.72 billion during the quarter, compared to the consensus estimate of $94.97 billion. Costco Wholesale had a return on equity of 28.43% and a net margin of 3.04%. Research analysts predict that Costco Wholesale will post 22.5 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

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

Hedge Funds Weigh In On Costco Wholesale

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE purchased a new stake in Costco Wholesale in the 2nd quarter worth about $6,781,946,000. Diamant Asset Management Inc. increased its holdings in shares of Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock valued at $672,690,000 after purchasing an additional 6,720,130 shares during the period. Norges Bank acquired a new position in shares of Costco Wholesale in the 4th quarter valued at about $5,195,415,000. State Street Corp lifted its position in shares of Costco Wholesale by 31.7% in the second quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock worth $22,359,224,000 after purchasing an additional 5,749,362 shares in the last quarter. Finally, Corient Private Wealth LLC boosted its holdings in shares of Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock worth $5,282,182,000 after purchasing an additional 5,472,968 shares during the period. Institutional investors and hedge funds own 68.48% of the company’s stock.

Costco Wholesale News Roundup

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

• Positive Sentiment: Quarterly beat and resilient demand: Costco reported $6.75 in adjusted EPS versus a $6.54 consensus estimate and revenue of $95.72 billion versus expectations of $94.97 billion. Net income rose 14.9% year over year, while comparable sales increased 9.4%, reflecting continued demand for essential goods amid economic uncertainty. Costco fourth-quarter earnings
• Positive Sentiment: Digital and membership engagement remain healthy: Digitally enabled comparable sales surged 19.5%, supported by broad-based gains across categories. Costco also highlighted younger members, strong renewal rates and plans to accelerate digital investment. Costco Q4 earnings call highlights
• Positive Sentiment: Expansion supports the long-term growth story: Management plans to open 33 new warehouses in fiscal 2027, while pharmacy, gasoline and international operations contributed to the latest results. Analysts including Goldman Sachs, UBS and Bernstein remain constructive, despite adjusting some price targets. Costco expansion plans
• Neutral Sentiment: Tariff refunds boosted earnings: A $184 million tariff refund contributed approximately $0.15 per share to fourth-quarter EPS. Costco said most of the money will be reinvested in lower prices for produce, meat, beverages and other merchandise, which may support customer loyalty but makes the earnings beat less reflective of recurring profitability. Costco tariff refunds
• Negative Sentiment: Membership growth is the key concern: Analysts noted that membership-fee growth has slowed significantly. Because recurring membership income is central to Costco’s valuation and future guidance, investors may require continued gains in members and renewal rates to justify the stock’s elevated earnings multiple.
• Negative Sentiment: Valuation and cost pressures temper enthusiasm: With a price-to-earnings ratio above 46, some analysts argue that much of Costco’s execution is already priced in. Rising memory-component costs also led to a $152 million electronics-related charge, while several firms lowered price targets following the report. Costco valuation analysis

About Costco Wholesale

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.