Costco Wholesale (NASDAQ:COST) Given Neutral Rating at DA Davidson

Key Points

• DA Davidson reiterated a neutral rating on Costco Wholesale and kept a $1,000 price target, implying only modest upside from the prior close.
• Analyst opinions remain mixed overall: the stock has a Moderate Buy consensus, with 22 Buy ratings, 11 Hold ratings, and 1 Sell rating, and an average target price of $1,060.41.
• Costco’s recent business results and trading remain strong, with May net sales up 14.5% year over year to $24.01 billion, but investors are still weighing the company’s premium valuation and potential margin pressure.

Costco Wholesale (NASDAQ:COST - Get Free Report)'s stock had its "neutral" rating reissued by DA Davidson in a report issued on Thursday,Benzinga reports. They presently have a $1,000.00 price objective on the retailer's stock. DA Davidson's price objective points to a potential upside of 1.58% from the stock's previous close.

COST has been the subject of a number of other reports. BTIG Research reiterated a "buy" rating and set a $1,125.00 target price on shares of Costco Wholesale in a research report on Friday, May 29th. Roth Mkm raised their target price on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a research report on Friday, May 29th. Truist Financial boosted their price target on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a report on Friday, May 29th. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Finally, The Goldman Sachs Group increased their target price on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Twenty-two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $1,060.41.

Costco Wholesale Stock Performance

NASDAQ:COST traded up $22.66 during mid-day trading on Thursday, hitting $984.49. 619,492 shares of the stock were exchanged, compared to its average volume of 2,154,591. The firm's 50-day simple moving average is $1,006.79 and its 200 day simple moving average is $963.58. The stock has a market capitalization of $436.77 billion, a price-to-earnings ratio of 49.55, a price-to-earnings-growth ratio of 4.62 and a beta of 0.88. Costco Wholesale has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.72%. The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same period in the prior year, the company earned $4.28 earnings per share. As a group, equities analysts anticipate that Costco Wholesale will post 20.38 EPS for the current fiscal year.

Insider Buying and Selling at Costco Wholesale

In related news, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the sale, the executive vice president owned 6,121 shares in the company, valued at $6,139,485.42. This represents a 10.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Costco Wholesale

Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its position in Costco Wholesale by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer's stock worth $37,615,889,000 after purchasing an additional 165,349 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Costco Wholesale by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer's stock worth $8,919,573,000 after buying an additional 26,690 shares in the last quarter. Morgan Stanley lifted its position in shares of Costco Wholesale by 1.1% during the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer's stock worth $8,212,433,000 after buying an additional 107,775 shares in the last quarter. Bank of America Corp DE boosted its stake in shares of Costco Wholesale by 11.5% in the 1st 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. Finally, Diamant Asset Management Inc. boosted its stake in shares of Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock worth $672,690,000 after buying an additional 6,720,130 shares during the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Key Costco Wholesale News

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

• Positive Sentiment: Costco reported May net sales of $24.01 billion, up 14.5% year over year, with continued healthy comparable sales growth. Investors are seeing this as evidence that demand remains strong and that Costco’s traffic and membership model are still working well. Costco Wholesale Corporation Reports May Sales Results
• Positive Sentiment: UBS reiterated a Buy rating and raised its price target to $1,275, citing robust comparable sales and a reacceleration in digital sales. That kind of analyst support can help reinforce the bullish case for COST. TipRanks article on UBS rating
• Positive Sentiment: Several reports highlighted Costco’s growing gasoline sales, expanding membership ecosystem, and strong quarterly execution, all of which suggest the company is still taking share and benefiting from value-conscious shoppers. 3 Compelling Costco Growth Drivers You Might Not Know About
• Neutral Sentiment: Costco plans to open a new store in Guilderland on Aug. 6, a modestly positive expansion update, but not a major near-term stock catalyst by itself. Costco plans Aug. 6 opening in Guilderland
• Neutral Sentiment: Some commentary continues to argue that COST is expensive at nearly 50x earnings, which could limit upside even though the business remains fundamentally strong. Costco: Quality Comes At A Price, But Paying Nearly 50x Earnings Is Excessive
• Negative Sentiment: Despite strong sales, bears remain focused on Costco’s premium valuation and margin pressure, with one earnings recap noting that gross profit fell sharply even as revenue and EPS rose. That tension may keep some investors cautious. QuiverQuant earnings recap

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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