BTIG Research Reiterates Buy Rating for Costco Wholesale (NASDAQ:COST)

Key Points

• BTIG Research reiterated its Buy rating on Costco Wholesale and kept a $1,125 price target, implying about 13% upside from the prior close.
• Analyst sentiment remains broadly positive: multiple firms recently raised or reaffirmed bullish ratings, and MarketBeat data shows 21 Buy ratings versus 11 Holds and 1 Sell, with an average price target of $1,051.54.
• Costco’s latest quarter was mixed but still strong overall, with revenue of $70.53 billion beating estimates while EPS of $4.93 slightly missed expectations; investors are also watching margin pressure from higher transportation costs.

Costco Wholesale (NASDAQ:COST - Get Free Report)'s stock had its "buy" rating reiterated by stock analysts at BTIG Research in a research report issued to clients and investors on Friday,Benzinga reports. They presently have a $1,125.00 price objective on the retailer's stock. BTIG Research's target price would indicate a potential upside of 13.04% from the stock's previous close.

COST has been the topic of several other reports. Bank of America started coverage on shares of Costco Wholesale in a report on Friday, February 27th. They set a "buy" rating and a $1,185.00 target price on the stock. Mizuho increased their target price on shares of Costco Wholesale from $1,065.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Thursday, April 16th. JPMorgan Chase & Co. increased their price target on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an "overweight" rating in a research report on Friday, April 17th. The Goldman Sachs Group decreased their price target on shares of Costco Wholesale from $1,171.00 to $1,088.00 and set a "buy" rating for the company in a research report on Friday, March 6th. Finally, Telsey Advisory Group increased their price target on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an "outperform" rating in a research report on Thursday, April 9th. Twenty-one analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Costco Wholesale has an average rating of "Moderate Buy" and an average price target of $1,051.54.

Costco Wholesale Stock Down 0.8%

Shares of Costco Wholesale stock opened at $995.20 on Friday. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. Costco Wholesale has a 1 year low of $844.06 and a 1 year high of $1,096.50. The firm's 50-day moving average is $1,008.28 and its two-hundred day moving average is $962.53. The stock has a market cap of $441.52 billion, a price-to-earnings ratio of 51.75, a PEG ratio of 4.94 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.98 by ($0.05). Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The business had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $69.68 billion. During the same quarter in the previous year, the company earned $4.28 earnings per share. As a group, research analysts expect that Costco Wholesale will post 20.33 earnings per share for the current fiscal year.

Insider Activity at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the sale, the executive vice president directly owned 6,121 shares of the company's stock, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.10% of the company's stock.

Hedge Funds Weigh In On Costco Wholesale

Several hedge funds and other institutional investors have recently modified their holdings of COST. Brighton Jones LLC raised its position in shares of Costco Wholesale by 12.3% in the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock valued at $18,165,000 after purchasing an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC raised its position in shares of Costco Wholesale by 13.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock valued at $1,029,000 after purchasing an additional 130 shares during the last quarter. Sivia Capital Partners LLC increased its holdings in Costco Wholesale by 4.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock worth $3,814,000 after buying an additional 165 shares during the period. Pinnacle Wealth Planning Services Inc. increased its holdings in Costco Wholesale by 1.1% in the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock worth $2,089,000 after buying an additional 23 shares during the period. Finally, Schnieders Capital Management LLC. increased its holdings in Costco Wholesale by 2.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock worth $8,416,000 after buying an additional 182 shares during the period. 68.48% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco reported fiscal Q3 results that topped sales expectations, with revenue of $70.53 billion, same-store sales up 9.8%, and strong demand for essentials and gasoline helping drive traffic. Reuters article
• Positive Sentiment: Analysts remained upbeat after the report, with Morgan Stanley reaffirming an Overweight rating and raising its price target to $1,130, while William Blair kept a Buy rating on Costco’s resilient fundamentals and member-driven growth. Morgan Stanley rating article William Blair rating article
• Positive Sentiment: The company highlighted record-breaking fuel volume and strong digital growth, reinforcing the view that Costco is still taking share from value-conscious consumers. Zacks earnings call article
• Neutral Sentiment: The earnings report was mixed on the bottom line, with EPS of $4.93 slightly missing estimates of $4.98, even as profit rose year over year and revenue beat expectations. MarketBeat earnings report
• Negative Sentiment: Investors are also weighing margin pressure, as higher transportation costs and compressed gross margins may limit near-term upside despite the strong sales trend. Motley Fool article

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.

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