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Costco Wholesale Corporation (NASDAQ:COST) Receives Consensus Rating of "Moderate Buy" from Brokerages

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Key Points

  • Analyst consensus: 34 analysts give Costco a "Moderate Buy" (22 buys, 11 holds, 1 sell) with an average 12‑month target of $1,043.13.
  • Positive operational/news drivers: Higher gas prices, a membership fee increase (first in seven years) and accelerating international sales are cited as near‑term tailwinds, and Costco recently beat quarterly EPS ($4.58 vs $4.55) with revenue up 9.2% year‑over‑year to $69.6B.
  • Ownership, insider trades and valuation: Insiders sold 3,538 shares (~$3.4M) in the last 90 days, institutions own 68.48% of the stock, and shares trade near $981 with a market cap of $435B and a P/E of 51.01.
  • Interested in Costco Wholesale? Here are five stocks we like better.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) has received an average rating of "Moderate Buy" from the thirty-four analysts that are presently covering the company, Marketbeat reports. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and twenty-two have issued a buy rating on the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $1,043.1333.

A number of research firms recently commented on COST. Deutsche Bank Aktiengesellschaft increased their price objective on Costco Wholesale from $1,103.00 to $1,104.00 and gave the company a "buy" rating in a research note on Thursday, April 9th. UBS Group set a $1,175.00 price objective on Costco Wholesale in a research note on Friday, March 6th. Weiss Ratings raised Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, March 17th. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $1,155.00 price objective on shares of Costco Wholesale in a research note on Monday, February 9th. Finally, Daiwa Securities Group increased their price objective on Costco Wholesale from $917.00 to $975.00 and gave the company a "neutral" rating in a research note on Tuesday, March 10th.

Read Our Latest Analysis on COST

Costco Wholesale News Roundup

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

Insider Buying and Selling

In related news, EVP Teresa A. Jones sold 850 shares of the stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $986.26, for a total transaction of $838,321.00. Following the sale, the executive vice president owned 4,228 shares of the company's stock, valued at $4,169,907.28. This trade represents a 16.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP James C. Klauer sold 1,500 shares of the firm's stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $939.00, for a total value of $1,408,500.00. Following the completion of the sale, the executive vice president directly owned 44,837 shares in the company, valued at approximately $42,101,943. The trade was a 3.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 3,538 shares of company stock worth $3,416,416 in the last ninety days. 0.10% of the stock is currently owned by insiders.

Institutional Trading of Costco Wholesale

A number of hedge funds have recently added to or reduced their stakes in COST. Brighton Jones LLC boosted its stake in Costco Wholesale by 12.3% in the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock worth $18,165,000 after buying an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC boosted its stake in Costco Wholesale by 13.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock worth $1,029,000 after buying an additional 130 shares during the last quarter. Sivia Capital Partners LLC boosted its stake 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 last quarter. Pinnacle Wealth Planning Services Inc. boosted its stake 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 last quarter. Finally, Schnieders Capital Management LLC. boosted its stake 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 last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale Trading Down 1.8%

Shares of COST stock opened at $980.85 on Tuesday. Costco Wholesale has a fifty-two week low of $844.06 and a fifty-two week high of $1,067.08. The stock has a market cap of $435.15 billion, a P/E ratio of 51.01, a P/E/G ratio of 4.92 and a beta of 0.99. The business has a fifty day simple moving average of $995.75 and a 200-day simple moving average of $943.13. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results on Thursday, March 5th. The retailer reported $4.58 earnings per share for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The business had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. During the same quarter last year, the business posted $4.02 earnings per share. The business's revenue for the quarter was up 9.2% on a year-over-year basis. On average, analysts forecast that Costco Wholesale will post 18.03 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, January 30th were paid a dividend of $1.30 per share. The ex-dividend date of this dividend was Friday, January 30th. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.5%. Costco Wholesale's dividend payout ratio (DPR) is presently 27.04%.

Costco Wholesale Company Profile

(Get Free Report)

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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Analyst Recommendations for Costco Wholesale (NASDAQ:COST)

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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