Costco Wholesale Corporation (NASDAQ:COST) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Costco has a consensus analyst rating of “Moderate Buy”, with 22 buy ratings, 11 hold ratings, and one sell rating across 34 research firms. The average 12-month price target is about $1,046.
• The company recently beat quarterly expectations, posting $4.58 EPS on $69.6 billion in revenue, while revenue grew 9.2% year over year. Analysts still expect Costco to generate strong full-year earnings of 20.32 EPS.
• Costco also increased its quarterly dividend to $1.47 per share from $1.30, raising the annualized payout to $5.88 per share. The dividend yield remains modest at about 0.6%.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) has been given an average rating of "Moderate Buy" by the thirty-four research firms that are presently covering the firm, MarketBeat reports. One analyst has rated the stock with a sell rating, eleven have issued a hold rating and twenty-two have assigned a buy rating to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $1,046.0333.

Several brokerages have issued reports on COST. Wells Fargo & Company lifted their price target on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 9th. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $1,155.00 price target on shares of Costco Wholesale in a research note on Monday, February 9th. Oppenheimer lifted their price target on Costco Wholesale from $1,050.00 to $1,100.00 and gave the stock an "outperform" rating in a research note on Thursday, February 5th. Gordon Haskett lifted their price target on Costco Wholesale from $1,000.00 to $1,100.00 in a research note on Tuesday, February 3rd. Finally, Telsey Advisory Group lifted their price objective on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an "outperform" rating in a report on Thursday, April 9th.

Costco Wholesale Trading Down 0.3%

Shares of COST stock opened at $1,008.79 on Friday. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The business has a 50-day moving average price of $998.03 and a two-hundred day moving average price of $951.50. Costco Wholesale has a 12-month low of $844.06 and a 12-month high of $1,067.08. The firm has a market cap of $447.55 billion, a P/E ratio of 52.46, a price-to-earnings-growth ratio of 4.99 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.55 by $0.03. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The firm had revenue of $69.60 billion during the quarter, compared to analyst estimates of $68.96 billion. During the same quarter in the previous year, the company posted $4.02 earnings per share. The company's revenue was up 9.2% compared to the same quarter last year. Equities analysts anticipate that Costco Wholesale will post 20.32 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Friday, May 1st will be issued a $1.47 dividend. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Friday, May 1st. Costco Wholesale's dividend payout ratio (DPR) is presently 30.58%.

More Costco Wholesale News

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

• Positive Sentiment: April net sales rose 13% and comparable sales remained strong, signaling resilient demand and solid momentum for Costco’s core business. Costco Wholesale Corporation Reports April Sales Results
• Positive Sentiment: Bank of America reiterated a Buy rating after the sales update, pointing to Costco’s steady comparable sales trend despite macro uncertainty. Costco April sales top expectations despite Easter shift, macroeconomic uncertainty
• Positive Sentiment: Deutsche Bank raised its price target and kept a Buy rating, adding to bullish sentiment around the stock. Deutsche Bank adjusts Costco Wholesale PT
• Positive Sentiment: Market chatter around a possible special dividend later this year may be attracting income-focused investors to COST. Is Costco Preparing Another Special Dividend This Year?
• Neutral Sentiment: Costco is also in the news for store expansion plans in California and Florida, which is constructive long term but not an immediate stock catalyst. Costco plots major California expansion as it announces new store openings
• Neutral Sentiment: Several lifestyle and product roundups highlight Costco’s strong brand and value perception, but these are unlikely to move the stock much on their own.
• Negative Sentiment: A lawsuit over Costco’s tariff-refund pricing strategy could create legal and margin uncertainty, though the longer-term financial impact is still unclear. Costco’s Going to Court Because It Wants to Give You Tariff Refunds

Insider Buying and Selling

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total value of $732,204.60. Following the transaction, the executive vice president directly owned 6,121 shares of the company's stock, valued at $6,139,485.42. The trade was a 10.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Costco Wholesale

Large investors have recently bought and sold shares of the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale in the 4th quarter worth approximately $27,000. Lifetime Wealth Management P.C. purchased a new position in Costco Wholesale in the 4th quarter worth approximately $28,000. Mcguire Capital Advisors Inc. purchased a new position in Costco Wholesale in the 4th quarter worth approximately $28,000. Hurley Capital LLC increased its stake in Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after purchasing an additional 18 shares during the period. Finally, Entrust Financial LLC purchased a new position in Costco Wholesale during the 4th quarter valued at about $31,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

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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