JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Costco Wholesale (NASDAQ:COST) Stock

Key Points

• JPMorgan raised its Costco price target to $1,150 from $1,015 and maintained an Overweight rating, implying 7.92% upside from the previous close. Analysts’ consensus rating is Moderate Buy, with an average target of $1,090.55.
• Costco beat quarterly expectations, reporting EPS of $6.75 versus $6.54 expected and revenue of $95.72 billion versus $94.97 billion; revenue grew 11.1% year over year.
• Recent sales trends were strong: October net sales increased 12.6% year over year to $24.50 billion, while U.S. comparable sales excluding gasoline-price changes rose 8.1%, according to Bank of America.

Costco Wholesale (NASDAQ:COST - Get Free Report) had its target price lifted by JPMorgan Chase & Co. from $1,015.00 to $1,150.00 in a research report issued on Thursday, Benzinga reports. The brokerage presently has an "overweight" rating on the retailer's stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 7.92% from the stock's previous close.

Other equities analysts have also recently issued reports about the company. Roth Capital reaffirmed a "sell" rating and set a $781.00 price objective on shares of Costco Wholesale in a report on Friday, September 25th. Mizuho lowered their target price on Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating on the stock in a report on Friday, September 25th. Royal Bank Of Canada reissued a "sector perform" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a report on Friday, October 9th. BMO Capital Markets restated an "outperform" rating on shares of Costco Wholesale in a research report on Friday, September 25th. Finally, TD Cowen began coverage on Costco Wholesale in a research note on Friday, October 30th. They set a "strong-buy" rating for the company. One investment analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Costco Wholesale has a consensus rating of "Moderate Buy" and a consensus target price of $1,090.55.

Costco Wholesale Price Performance

Costco Wholesale stock traded up $19.12 during mid-day trading on Thursday, reaching $1,065.59. The company had a trading volume of 4,728,502 shares, compared to its average volume of 2,212,839. Costco Wholesale has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. The company has a market capitalization of $472.19 billion, a P/E ratio of 51.33, a P/E/G ratio of 4.36 and a beta of 0.85. The stock's 50-day simple moving average is $947.85 and its 200-day simple moving average is $971.54.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 net margin of 3.04% and a return on equity of 27.60%. The company's revenue for the quarter was up 11.1% on a year-over-year basis. During the same period last year, the firm earned $5.87 EPS. On average, equities analysts predict that Costco Wholesale will post 22.70 EPS for the current year.

Insider Activity at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction 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 sale, the executive vice president owned 7,134 shares in the company, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP William Richard Wilcox sold 1,100 shares of the firm's stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total value of $1,054,031.00. Following the transaction, the executive vice president directly owned 3,094 shares of the company's stock, valued at $2,964,701.74. The trade was a 26.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.10% of the company's stock.

Hedge Funds Weigh In On Costco Wholesale

A number of institutional investors have recently made changes to their positions in COST. Bank of America Corp DE acquired a new position in shares of Costco Wholesale in the second quarter worth approximately $6,781,946,000. State Street Corp increased its position in Costco Wholesale by 31.7% during the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock valued at $22,359,224,000 after purchasing an additional 5,749,362 shares during the period. Legal & General Group Plc acquired a new stake in Costco Wholesale during the 2nd quarter valued at approximately $2,362,188,000. Ascentis Wealth Management LLC raised its holdings in Costco Wholesale by 103,637.0% during the 2nd quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer's stock worth $2,549,616,000 after purchasing an additional 2,497,652 shares during the last quarter. Finally, Corient Private Wealth LP bought a new position in Costco Wholesale during the 2nd quarter worth approximately $726,689,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale News Roundup

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

• Positive Sentiment: October net sales rose 12.6% year over year to $24.50 billion. U.S. comparable sales also showed strength: Bank of America cited 8.1% growth excluding changes in gasoline prices and maintained its Buy rating. Costco retains BofA buy as October U.S. comps rise 8.1%
• Neutral Sentiment: Jim Cramer’s favorable view, rooted in Costco’s durable business and loyal membership base, highlights the case for looking beyond its high P/E. The article nevertheless notes that business quality and share price are separate considerations after a recent rally. Jim Cramer says Costco is still a great value
• Negative Sentiment: Valuation concerns may temper the sales-driven optimism. Citi maintained a Hold rating and $1,020 price target, while other coverage warns that Costco’s elevated earnings multiple leaves little room for disappointment. Citi maintains Hold and $1,020 price target

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.

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