Costco Wholesale (NASDAQ:COST) Earns Neutral Rating from DA Davidson

Costco Wholesale (NASDAQ:COST)‘s stock had its “neutral” rating restated by research analysts at DA Davidson in a report issued on Thursday,Benzinga reports. They currently have a $1,000.00 target price on the retailer’s stock. DA Davidson’s price target indicates a potential upside of 1.58% from the company’s previous close.

A number of other brokerages also recently issued reports on COST. BMO Capital Markets increased their price objective on Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an “outperform” rating in a research report on Friday, March 6th. Telsey Advisory Group boosted their price objective on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an “outperform” rating in a report on Thursday, April 9th. HC Wainwright reaffirmed a “buy” rating on shares of Costco Wholesale in a report on Monday. TD Cowen reiterated a “buy” rating and issued a $1,175.00 target price on shares of Costco Wholesale in a research report on Wednesday. Finally, Evercore set a $1,100.00 price target on shares of Costco Wholesale in a research note on Monday, March 2nd. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Costco Wholesale presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,060.41.

Costco Wholesale Stock Performance

Shares of COST traded up $22.66 during trading hours on Thursday, hitting $984.49. The company’s stock had a trading volume of 619,492 shares, compared to its average volume of 2,154,591. Costco Wholesale has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a market cap of $436.77 billion, a price-to-earnings ratio of 49.55, a PEG ratio of 4.62 and a beta of 0.88. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. The business has a 50 day simple moving average of $1,006.79 and a two-hundred day simple moving average of $963.58.

Costco Wholesale (NASDAQ:COST) last posted its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.72% and a net margin of 3.01%.The company had revenue of $70.53 billion for the quarter, compared to analysts’ expectations of $70.12 billion. During the same quarter in the prior year, the company earned $4.28 EPS. On average, equities analysts expect that Costco Wholesale will post 20.38 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Claudine Adamo sold 730 shares of the firm’s stock in a transaction that occurred on 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 completion of the transaction, the executive vice president owned 6,121 shares in the company, valued at $6,139,485.42. This trade represents a 10.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of Costco Wholesale in the 4th quarter worth about $27,000. Mcguire Capital Advisors Inc. purchased a new stake in Costco Wholesale during the 4th quarter valued at about $28,000. Hurley Capital LLC increased its stake in Costco Wholesale by 120.0% during the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock valued at $31,000 after purchasing an additional 18 shares in the last quarter. Lifetime Wealth Management P.C. purchased a new position in Costco Wholesale in the fourth quarter worth about $28,000. Finally, Manning & Napier Advisors LLC raised its holdings in Costco Wholesale by 750.0% in the first quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer’s stock worth $34,000 after buying an additional 30 shares during the last quarter. Hedge funds and other 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 May net sales of $24.01 billion, up 14.5% year over year, with continued healthy comparable sales growth. Investors are seeing this as evidence that demand remains strong and that Costco’s traffic and membership model are still working well. Costco Wholesale Corporation Reports May Sales Results
• Positive Sentiment: UBS reiterated a Buy rating and raised its price target to $1,275, citing robust comparable sales and a reacceleration in digital sales. That kind of analyst support can help reinforce the bullish case for COST. TipRanks article on UBS rating
• Positive Sentiment: Several reports highlighted Costco’s growing gasoline sales, expanding membership ecosystem, and strong quarterly execution, all of which suggest the company is still taking share and benefiting from value-conscious shoppers. 3 Compelling Costco Growth Drivers You Might Not Know About
• Neutral Sentiment: Costco plans to open a new store in Guilderland on Aug. 6, a modestly positive expansion update, but not a major near-term stock catalyst by itself. Costco plans Aug. 6 opening in Guilderland
• Neutral Sentiment: Some commentary continues to argue that COST is expensive at nearly 50x earnings, which could limit upside even though the business remains fundamentally strong. Costco: Quality Comes At A Price, But Paying Nearly 50x Earnings Is Excessive
• Negative Sentiment: Despite strong sales, bears remain focused on Costco’s premium valuation and margin pressure, with one earnings recap noting that gross profit fell sharply even as revenue and EPS rose. That tension may keep some investors cautious. QuiverQuant earnings recap

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.