Costco Wholesale (NASDAQ:COST) Earns Buy Rating from BTIG Research

Key Points

• BTIG Research reaffirmed its Buy rating on Costco and set a $1,125 price target, implying roughly 21% upside from the prior close. The broader analyst consensus is Moderate Buy, with an average target of $1,059.53.
• Costco reported strong sales momentum, including 9.9% year-over-year August net-sales growth to $23.7 billion and an 8.4% increase in comparable sales; digitally enabled sales rose 17.9%.
• Despite solid operating performance, Costco’s elevated valuation could limit upside, while a Justice Department investigation into beef pricing and the shutdown of its Costco Next marketplace add uncertainty.

Costco Wholesale (NASDAQ:COST - Get Free Report)'s stock had its "buy" rating reissued by analysts at BTIG Research in a report released on Thursday, Benzinga reports. They presently have a $1,125.00 price objective on the retailer's stock. BTIG Research's price target would indicate a potential upside of 21.17% from the company's previous close.

Several other analysts have also recently issued reports on the stock. Bank of America upped their target price on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a "buy" rating in a research report on Friday, May 29th. DA Davidson reissued a "neutral" rating and set a $1,000.00 target price on shares of Costco Wholesale in a research report on Thursday, June 4th. Weiss Ratings lowered shares of Costco Wholesale from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, June 23rd. Royal Bank Of Canada assumed coverage on shares of Costco Wholesale in a research note on Monday, July 13th. They issued a "sector perform" rating and a $1,000.00 target price on the stock. Finally, Sanford C. Bernstein increased their price objective on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research report on Friday, May 29th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Costco Wholesale presently has an average rating of "Moderate Buy" and an average price target of $1,059.53.

Costco Wholesale Price Performance

Costco Wholesale stock opened at $928.48 on Thursday. Costco Wholesale has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The firm's fifty day moving average is $944.65 and its 200 day moving average is $978.84. The company has a market cap of $411.76 billion, a price-to-earnings ratio of 46.70, a PEG ratio of 3.89 and a beta of 0.87.

Insider Activity at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the sale, the director 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On Costco Wholesale

Several hedge funds have recently made changes to their positions in the company. MLG Wealth Management DBA Pine Grove Financial Group raised its holdings in shares of Costco Wholesale by 10.1% in the 2nd quarter. MLG Wealth Management DBA Pine Grove Financial Group now owns 480 shares of the retailer's stock valued at $449,000 after purchasing an additional 44 shares in the last quarter. Agur Provident & Training Funds Management Ltd. bought a new position in shares of Costco Wholesale in the 2nd quarter worth $5,118,000. Cornerstone Financial Management LLC boosted its position in Costco Wholesale by 16.0% during the second quarter. Cornerstone Financial Management LLC now owns 152 shares of the retailer's stock valued at $142,000 after purchasing an additional 21 shares in the last quarter. Formuepleje A S bought a new position in Costco Wholesale in the second quarter worth about $2,093,000. Finally, HORAN Wealth LLC lifted its position in shares of Costco Wholesale by 3.4% during the second quarter. HORAN Wealth LLC now owns 830 shares of the retailer's stock valued at $777,000 after buying an additional 27 shares during the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale News Roundup

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

• Positive Sentiment: August sales were robust: Costco reported $23.7 billion in August net sales, up 9.9% year over year. Fourth-quarter sales increased 11.3% to $93.9 billion, while fiscal-year sales rose 10.2% to $297.3 billion. Total-company comparable sales grew 8.4% for August, and digitally enabled sales climbed 17.9%. Costco Wholesale Corporation Reports August Sales Results
• Positive Sentiment: Analysts remain constructive: BTIG’s Robert Drbul reaffirmed a Buy rating with a $1,125 price target, citing strong August sales and higher estimates. Bank of America’s Christopher Nardone also maintained a Buy rating and $1,200 target, pointing to resilient core performance and continued share gains. BTIG Reaffirms Buy on Costco
• Neutral Sentiment: Calendar effects clouded the monthly comparison: Costco said the later Labor Day holiday reduced August total and comparable sales by slightly less than 75 basis points. Core U.S. comparable sales, excluding gasoline and foreign-exchange effects, increased 5.6%.
• Negative Sentiment: Premium valuation may be limiting upside: Costco trades at a high earnings multiple, leaving less room for disappointment even after strong sales. The stock’s decline while the broader market rose suggests investors may already have priced in much of the company’s growth.
• Negative Sentiment: Regulatory and service concerns added pressure: The Justice Department expanded an investigation into retail beef-price increases to include Costco, Walmart and other retailers. Separately, Costco abruptly ended its Costco Next online marketplace, potentially frustrating members, although the direct financial impact is unclear. DOJ Expands Beef Price Investigation

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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