Costco Wholesale (NASDAQ:COST) Stock Rating Reaffirmed as “Sector Perform” by Royal Bank Of Canada

Costco Wholesale (NASDAQ:COST)‘s stock had its “sector perform” rating reissued by stock analysts at Royal Bank Of Canada in a note issued to investors on Friday, Benzinga reports. They presently have a $1,000.00 price objective on the retailer’s stock. Royal Bank Of Canada’s price objective suggests a potential upside of 4.75% from the stock’s previous close.

Other analysts have also issued reports about the company. Wells Fargo & Company decreased their target price on Costco Wholesale from $1,000.00 to $950.00 and set an “equal weight” rating for the company in a research report on Friday, September 25th. Weiss Ratings lowered Costco Wholesale from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, September 2nd. Oppenheimer reaffirmed an “outperform” rating and issued a $1,160.00 target price on shares of Costco Wholesale in a research report on Wednesday, September 16th. Mizuho decreased their target price on Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating for the company in a research report on Friday, September 25th. Finally, Evercore reaffirmed an “outperform” rating on shares of Costco Wholesale in a research report on Tuesday, September 22nd. Twenty-three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $1,046.27.

Costco Wholesale Price Performance

Shares of NASDAQ:COST traded down $4.81 on Friday, reaching $954.63. 1,385,991 shares of the company traded hands, compared to its average volume of 2,185,057. Costco Wholesale has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The company’s 50 day moving average is $930.81 and its 200-day moving average is $963.26. The stock has a market capitalization of $423.02 billion, a PE ratio of 45.98, a P/E/G ratio of 4.05 and a beta of 0.88. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating analysts’ consensus estimates of $6.54 by $0.21. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The company had revenue of $95.72 billion during the quarter, compared to the consensus estimate of $94.97 billion. During the same quarter in the prior year, the firm earned $5.87 EPS. The company’s quarterly revenue was up 11.1% compared to the same quarter last year. As a group, analysts anticipate that Costco Wholesale will post 22.85 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the business’s stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the completion of the sale, the executive vice president directly owned 7,134 shares of the company’s stock, valued at approximately $6,534,244.62. The trade was a 23.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of Costco Wholesale during the fourth quarter worth $27,000. Lifetime Wealth Management P.C. acquired a new position in shares of Costco Wholesale during the fourth quarter worth $28,000. C M Bidwell & Associates Ltd. acquired a new position in shares of Costco Wholesale during the second quarter worth $28,000. Burk Holdings LLC acquired a new position in shares of Costco Wholesale during the second quarter worth $30,000. Finally, Manning & Napier Advisors LLC acquired a new position in shares of Costco Wholesale during the second quarter worth $30,000. 68.48% of the stock is owned by institutional investors.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco reported 13% year-over-year September net-sales growth to $30.02 billion, supported by membership strength and continued consumer demand. Digital sales were even stronger, rising 19% as expanded delivery options and personalization helped drive online growth. Costco Wholesale Posts 13% September Sales Growth
• Positive Sentiment: Costco’s balance sheet remains a competitive advantage, with approximately $21.3 billion of liquidity, manageable debt and robust cash generation. Those resources can support warehouse expansion, technology investments and other growth initiatives. How Costco’s Balance Sheet Gives It an Edge Over Retail Competitors
• Positive Sentiment: Erste Group raised its FY2027 Costco EPS forecast to $22.80 from $22.67 and projects FY2028 EPS of $25.01, reinforcing the view that earnings growth can continue.
• Neutral Sentiment: Analysts and investors continue to debate whether Costco’s momentum justifies its valuation. The stock trades at roughly 46 times earnings, well above the broader market, leaving less room for disappointment even after strong sales updates.
• Negative Sentiment: Higher interest rates are an opportunity cost for income-focused investors: the 10-year Treasury yield has reached about 5.2%, significantly exceeding Costco’s dividend yield. This may weigh on demand for an expensive defensive stock. Costco Stock Versus 10-Year Treasury Notes
• Negative Sentiment: Some of September’s sales growth benefited from elevated gasoline prices, which increase reported fuel revenue. If gas prices decline, that tailwind could fade, making underlying merchandise growth more important to sustaining Costco’s premium valuation. What Cheaper Gas Would Mean for Costco Sales and Margins

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.