Costco Wholesale's (COST) Neutral Rating Reaffirmed at DA Davidson

Key Points

• DA Davidson reiterated a neutral rating on Costco with a $1,000 price objective, implying roughly a 0.15% upside from current levels.
• Analyst consensus is tilted positive—22 Buys, 11 Holds and 1 Sell—with an average target of $1,043.13 and an overall MarketBeat consensus of "Moderate Buy."
• Costco beat quarterly expectations (EPS $4.58 vs. $4.55; revenue $69.6B, up 9.2% YoY) but trades at a premium valuation (P/E ~51.9) with shares near $998, making valuation a potential headwind.

Costco Wholesale (NASDAQ:COST - Get Free Report)'s stock had its "neutral" rating reiterated by analysts at DA Davidson in a research note issued on Friday,Benzinga reports. They presently have a $1,000.00 price objective on the retailer's stock. DA Davidson's price objective would indicate a potential upside of 0.15% from the company's current price.

COST has been the subject of several other research reports. JPMorgan Chase & Co. raised their price target on Costco Wholesale from $1,050.00 to $1,060.00 and gave the company an "overweight" rating in a report on Friday, March 6th. Truist Financial raised their price target on Costco Wholesale from $926.00 to $977.00 and gave the company a "hold" rating in a report on Friday, March 6th. Evercore set a $1,100.00 price target on Costco Wholesale in a report on Monday, March 2nd. Robert W. Baird set a $1,100.00 price target on Costco Wholesale in a report on Thursday, February 5th. Finally, Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a report on Monday, December 22nd. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $1,043.13.

Costco Wholesale Price Performance

NASDAQ COST traded down $33.56 during trading on Friday, hitting $998.47. 2,238,449 shares of the stock traded hands, compared to its average volume of 2,177,142. The company has a market capitalization of $442.97 billion, a P/E ratio of 51.92, a price-to-earnings-growth ratio of 5.09 and a beta of 0.99. The firm has a 50-day simple moving average of $994.33 and a 200-day simple moving average of $942.50. 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 has a 12-month low of $844.06 and a 12-month high of $1,067.08.

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

Insiders Place Their Bets

In related news, EVP Claudine Adamo sold 730 shares of the firm's 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 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 trade represents a 10.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Teresa A. Jones sold 850 shares of the firm's stock in a transaction that occurred on Wednesday, January 21st. The stock was sold at an average price of $986.26, for a total value of $838,321.00. Following the sale, the executive vice president directly owned 4,228 shares of the company's stock, valued at $4,169,907.28. This represents a 16.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 3,538 shares of company stock valued at $3,416,416 over the last quarter. 0.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Costco Wholesale

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Palisade Asset Management LLC raised its position in Costco Wholesale by 1.4% during the 4th quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock valued at $605,000 after purchasing an additional 10 shares in the last quarter. Graybill Wealth Management LTD. raised its position in Costco Wholesale by 0.3% during the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock valued at $2,754,000 after purchasing an additional 10 shares in the last quarter. Lbmc Investment Advisors LLC raised its position in shares of Costco Wholesale by 0.5% in the 4th quarter. Lbmc Investment Advisors LLC now owns 2,041 shares of the retailer's stock worth $1,760,000 after acquiring an additional 10 shares in the last quarter. Busey Bank raised its position in shares of Costco Wholesale by 0.4% in the 3rd quarter. Busey Bank now owns 2,651 shares of the retailer's stock worth $2,454,000 after acquiring an additional 11 shares in the last quarter. Finally, Pasadena Private Wealth LLC raised its position in shares of Costco Wholesale by 0.8% in the 3rd quarter. Pasadena Private Wealth LLC now owns 1,403 shares of the retailer's stock worth $1,299,000 after acquiring an additional 11 shares in the last quarter. 68.48% of the stock is owned by institutional investors.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Costco reported a blowout March retail month: net sales rose 11.3% to $28.41B, digital sales surged and traffic/transactions climbed — a clear short‑term revenue catalyst that supports the company's growth trajectory. GlobeNewswire: March Sales Results
• Positive Sentiment: Several brokers raised targets or reiterated Buy views (Deutsche Bank, Telsey, Wells Fargo, William Blair/Goldman maintained bullish stances), providing analyst support that can underpin medium‑term upside. Deutsche Bank price target raise Wells Fargo forecast
• Positive Sentiment: Viral consumer interest in new SKUs (notably one‑ounce gold bars) is driving short‑term traffic, sellouts and brand visibility beyond typical merchandise — a revenue/PR tailwind. Yahoo: Costco Gold Bars
• Neutral Sentiment: Media and TV commentators (e.g., Jim Cramer) are flagging operational catalysts such as fuel pricing and membership strength — useful color for sentiment but not new company guidance. InsiderMonkey: Cramer catalysts
• Negative Sentiment: Valuation is a clear headwind: commentary from Seeking Alpha and others notes Costco trades at a premium (roughly ~50x EPS); some investors and firms caution upside is limited absent margin/earnings acceleration. Seeking Alpha: Valuation concerns
• Negative Sentiment: Wider market volatility (geo‑political headlines and S&P futures weakness) pressured retail names today, contributing to Costco's pullback as investors de‑risk across sectors. Benzinga: Market volatility

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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