Tigress Financial Forecasts Strong Price Appreciation for Costco Wholesale (NASDAQ:COST) Stock

Key Points

• Tigress Financial raised its Costco price target from $1,065 to $1,250 and maintained a “buy” rating, implying 27.81% potential upside. Analysts overall give the stock a “Moderate Buy” consensus rating with an average target of $1,087.40.
• Costco reported stronger-than-expected quarterly results, including $6.75 in EPS versus a $6.54 estimate and $95.72 billion in revenue, up 11.1% year over year.
• Valuation remains a risk: shares trade at a P/E ratio of 47.11, while two executives recently sold stock and reduced their holdings. Institutional investors nonetheless own 68.48% of the company.

Costco Wholesale (NASDAQ:COST - Get Free Report) had its target price boosted by stock analysts at Tigress Financial from $1,065.00 to $1,250.00 in a research note issued on Thursday, Benzinga reports. The firm currently has a "buy" rating on the retailer's stock. Tigress Financial's price target would suggest a potential upside of 27.81% from the stock's current price.

Several other brokerages also recently issued reports on COST. Royal Bank Of Canada reissued a "sector perform" rating and set a $1,000.00 target price on shares of Costco Wholesale in a research note on Friday, October 9th. Oppenheimer reiterated an "outperform" rating and issued a $1,160.00 target price on shares of Costco Wholesale in a report on Wednesday, September 16th. Citigroup started coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They issued a "neutral" rating and a $1,020.00 price target for the company. Jefferies Financial Group decreased their price target on shares of Costco Wholesale from $1,130.00 to $1,100.00 in a report on Friday, September 25th. Finally, Weiss Ratings upgraded shares of Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. Twenty-four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,087.40.

Costco Wholesale Trading Down 0.4%

COST stock traded down $3.99 during mid-day trading on Thursday, reaching $978.01. 2,988,246 shares of the stock traded hands, compared to its average volume of 2,193,811. Costco Wholesale has a 52-week low of $844.06 and a 52-week high of $1,096.50. The stock's fifty day moving average is $931.75 and its 200-day moving average is $963.13. The company has a market cap of $433.39 billion, a P/E ratio of 47.11, a P/E/G ratio of 4.08 and a beta of 0.88. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating the consensus estimate of $6.54 by $0.21. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The business 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 firm's quarterly revenue was up 11.1% on a year-over-year basis. As a group, sell-side analysts expect that Costco Wholesale will post 22.70 earnings per share for the current year.

Insider Buying and Selling

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the 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 transaction, the executive vice president owned 7,134 shares in the company, valued at $6,534,244.62. This trade represents a 23.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of the business's stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the sale, the executive vice president owned 3,094 shares of the company's stock, valued at $2,964,701.74. The trade was a 26.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. State Street Corp grew its position in Costco Wholesale by 31.7% during the second quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock valued at $22,359,224,000 after buying an additional 5,749,362 shares during the period. Bank of America Corp DE increased its holdings in Costco Wholesale by 11.5% during the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock worth $7,488,203,000 after buying an additional 773,651 shares during the last quarter. Corient Private Wealth LLC raised its position in Costco Wholesale by 838.9% in the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock worth $5,282,182,000 after acquiring an additional 5,472,968 shares during the period. Invesco Ltd. raised its position in Costco Wholesale by 3.4% in the fourth quarter. Invesco Ltd. now owns 4,328,729 shares of the retailer's stock worth $3,732,836,000 after acquiring an additional 143,150 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Costco Wholesale by 5.5% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,068,312 shares of the retailer's stock worth $2,870,314,000 after acquiring an additional 160,893 shares during the period. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Defensive retail rotation: Hotter-than-expected inflation data has encouraged investors to favor retailers selling everyday necessities. Costco benefited alongside Walmart and Target as a relatively defensive consumer stock. Inflation Sends Money Into Defensive Retailers
• Positive Sentiment: Strong operating momentum: Costco’s September net sales rose 13% year over year to $30.02 billion, while digitally enabled sales increased 19%. The results reinforce the appeal of its membership model, value pricing and growing e-commerce business. Costco September Sales and Digital Growth
• Positive Sentiment: Expansion opportunity: Costco is planning a roughly 166,000-square-foot warehouse at a former Oakland Army base, potentially creating a significant new market location. The company also received early approval for a store in Florida. Costco Oakland Warehouse Plan
• Positive Sentiment: Dividend and earnings outlook: Costco declared a quarterly dividend of $1.47 per share, payable November 13. An analyst also modestly raised the FY2027 EPS estimate, supporting the view that earnings growth can continue. Costco Dividend Announcement
• Neutral Sentiment: Recent coverage of new seasonal products, younger members and Costco’s influence on nearby home values highlights strong brand engagement, but is unlikely to materially affect near-term earnings. Costco Younger Member Growth
• Negative Sentiment: Valuation and insider selling: COST trades at a demanding earnings multiple, increasing downside risk if growth slows. EVP William Richard Wilcox also sold 1,100 shares worth approximately $1.05 million, reducing his holdings by 26.2%, although the transaction alone does not establish a change in company fundamentals. Costco Executive Share Sale

Costco Wholesale Company Profile

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.

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