Costco Wholesale (NASDAQ:COST) Given "Neutral" Rating at DA Davidson

Key Points

• DA Davidson reaffirmed its “Neutral” rating on Costco, assigning a $1,000 price target—about 8.06% above the stock’s reported price of $925.41.
• Analyst sentiment remains broadly positive: 22 analysts rate Costco a Buy, 11 a Hold and one a Sell, producing a consensus “Moderate Buy” rating and an average price target of $1,059.53.
• Costco reported strong recent sales growth, including August net sales up 9.9% year over year and fiscal-year sales up 10.2%, though the company faces potential regulatory risk from a DOJ beef-pricing investigation and the discontinuation of Costco Next.

Costco Wholesale (NASDAQ:COST - Get Free Report)'s stock had its "neutral" rating restated by equities researchers at DA Davidson in a note issued to investors on Thursday, Benzinga reports. They currently have a $1,000.00 price target on the retailer's stock. DA Davidson's price objective suggests a potential upside of 8.06% from the company's current price.

Several other research firms have also issued reports on COST. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $1,120.00 price objective on shares of Costco Wholesale in a research note on Thursday, August 6th. Roth Capital upped their target price on shares of Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research report on Friday, May 29th. UBS Group increased their target price on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a research note on Wednesday, May 20th. TD Cowen restated a "buy" rating and set a $1,175.00 price target on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Finally, Truist Financial lifted their price target on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research note on Friday, May 29th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,059.53.

Costco Wholesale Stock Performance

COST traded down $3.07 during trading hours on Thursday, hitting $925.41. The stock had a trading volume of 2,169,682 shares, compared to its average volume of 2,176,745. The company's fifty day simple moving average is $944.65 and its 200 day simple moving average is $978.84. Costco Wholesale has a 1 year low of $844.06 and a 1 year high of $1,096.50. The stock has a market cap of $410.40 billion, a PE ratio of 46.55, a price-to-earnings-growth ratio of 3.89 and a beta of 0.87. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the company's stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares of the company's stock, valued at $4,575,653.55. This represents a 15.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Costco Wholesale

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. MLG Wealth Management DBA Pine Grove Financial Group boosted its stake in 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 worth $449,000 after purchasing an additional 44 shares in the last quarter. Agur Provident & Training Funds Management Ltd. purchased a new position in Costco Wholesale in the 2nd quarter worth approximately $5,118,000. Cornerstone Financial Management LLC lifted its position in Costco Wholesale by 16.0% in the 2nd quarter. Cornerstone Financial Management LLC now owns 152 shares of the retailer's stock valued at $142,000 after acquiring an additional 21 shares in the last quarter. Formuepleje A S bought a new position in Costco Wholesale in the 2nd quarter valued at approximately $2,093,000. Finally, HORAN Wealth LLC boosted its stake in Costco Wholesale by 3.4% during the 2nd quarter. HORAN Wealth LLC now owns 830 shares of the retailer's stock valued at $777,000 after purchasing an additional 27 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Key Costco Wholesale News

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

• Positive Sentiment: Strong August and fiscal-year sales: Costco reported August net sales of $23.70 billion, up 9.9% year over year. Fourth-quarter sales rose 11.3% to $93.9 billion, while fiscal-year sales increased 10.2% to $297.3 billion. Total comparable sales grew 8.4% for the year, and digitally enabled sales climbed 20.9%, supporting the company’s growth narrative. Costco Wholesale Corporation Reports August Sales Results
• Positive Sentiment: Analysts reaffirm bullish views: BTIG reiterated its Buy rating with a $1,125 price target, while Bank of America maintained a Buy rating and a $1,200 target. Analysts cited resilient core performance, market-share gains, strong August sales and higher estimates. BTIG Costco Analyst Rating
• Neutral Sentiment: Long-term optimism: A bullish forecast argues Costco could surpass the combined market value of Home Depot and Lowe’s by 2030 if it continues expanding memberships, warehouses and profits without fundamentally changing its business model. This is an opinion-based projection rather than a new company forecast. Costco Could Be Worth More Than Home Depot and Lowe’s Combined
• Negative Sentiment: DOJ beef-pricing investigation expands: The Justice Department is requesting records from Costco and other major retailers concerning beef prices, costs, margins, purchasing and supply-chain arrangements. The probe creates potential legal, regulatory and reputational risks, though no wrongdoing has been established. US DOJ Widens Beef Price Inquiry
• Negative Sentiment: Costco Next was abruptly discontinued: The shutdown of the curated online marketplace disappointed some members and raises questions about the service’s contribution to customer engagement and e-commerce growth. Costco Has Ended This Online Service

Costco Wholesale Company Profile

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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