DA Davidson Reiterates "Neutral" Rating for Costco Wholesale (NASDAQ:COST)

Key Points

• DA Davidson reiterated a Neutral rating on Costco Wholesale and kept a $1,000 price target, implying modest upside from the prior close.
• Costco’s shares fell 4.2% to $953.24 as investors reacted to its latest earnings report and broader analyst commentary.
• The company’s quarterly results were strong on revenue at $70.53 billion, but EPS of $4.93 missed analyst expectations, while several other firms still raised their price targets and maintained upbeat ratings.

Costco Wholesale (NASDAQ:COST - Get Free Report)'s stock had its "neutral" rating reissued by DA Davidson in a report issued on Friday,Benzinga reports. They currently have a $1,000.00 target price on the retailer's stock. DA Davidson's price objective suggests a potential upside of 4.91% from the company's previous close.

COST has been the topic of a number of other reports. Truist Financial boosted their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a report on Friday. JPMorgan Chase & Co. boosted their price objective on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an "overweight" rating in a report on Friday, April 17th. Raymond James Financial boosted their price objective on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an "outperform" rating in a report on Friday, March 6th. UBS Group boosted their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a report on Wednesday, May 20th. Finally, Rothschild & Co Redburn boosted their price objective on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the company a "neutral" rating in a report on Tuesday, February 17th. Twenty-one investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $1,056.32.

Costco Wholesale Stock Down 4.2%

Shares of COST stock traded down $41.96 during trading hours on Friday, reaching $953.24. 3,414,556 shares of the company's stock were exchanged, compared to its average volume of 2,127,937. The stock's 50 day moving average is $1,008.28 and its 200-day moving average is $962.53. The company has a market cap of $422.90 billion, a price-to-earnings ratio of 49.53, a P/E/G ratio of 4.94 and a beta of 0.92. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. Costco Wholesale has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50.

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

Insider Buying and Selling

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction on 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 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 document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On Costco Wholesale

Several hedge funds have recently modified their holdings of COST. Diamant Asset Management Inc. boosted its stake in shares of Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock worth $672,690,000 after acquiring an additional 6,720,130 shares in the last quarter. Norges Bank purchased a new stake in shares of Costco Wholesale during the 4th quarter worth about $5,195,415,000. Corient Private Wealth LLC boosted its stake in shares of Costco Wholesale by 838.9% during the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock worth $5,282,182,000 after acquiring an additional 5,472,968 shares in the last quarter. Cardano Risk Management B.V. boosted its stake in shares of Costco Wholesale by 907.1% during the 4th quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer's stock worth $1,539,346,000 after acquiring an additional 1,607,833 shares in the last quarter. Finally, Assenagon Asset Management S.A. boosted its stake in shares of Costco Wholesale by 1,586.8% during the 4th quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer's stock worth $980,857,000 after acquiring an additional 1,070,005 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco delivered another strong quarter, with revenue of $70.53 billion and earnings per share of $4.93, while comparable sales and membership-driven demand remained robust. Costco Wholesale Corporation Reports Third Quarter and Year-To-Date Operating Results For Fiscal 2026
• Positive Sentiment: Membership fee income, digital sales, and e-commerce traffic all accelerated, showing that Costco’s core growth engine is still working well. Costco Q3 Earnings Beat on Strong Membership and Digital Growth
• Positive Sentiment: Analysts continued to sound upbeat, with several firms lifting price targets after the report, including Goldman Sachs, Bernstein, Morgan Stanley, BTIG, and Truist. Analyst Reaffirms Overweight on Costco, Citing Structural Strengths and Value Focus While Raising Price Target to $1,130
• Neutral Sentiment: Costco also benefited from record gas volumes and higher fuel-related traffic, which helped lift sales and same-store results. Higher gas prices are driving people to membership retailers — and Costco is the latest to benefit
• Negative Sentiment: The stock is under pressure because the market expected even more from a name that already trades at a premium multiple, and the EPS miss versus consensus gave bears a reason to sell. Why Costco Stock Was Sliding Today
• Negative Sentiment: Several articles pointed to margin compression and rising costs, suggesting profitability may be harder to expand even as sales remain strong. Is Costco a Buy After Its Latest Earnings Report?

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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