Costco Wholesale (NASDAQ:COST) Stock Price Up 1.1% After Analyst Upgrade

Key Points

• Analyst upgrade lifted Costco shares 1.1%: Tigress Financial raised its price target from $1,065 to $1,250 while maintaining a Buy rating. The stock traded near $989, with volume modestly above its average.
• Analyst sentiment remains positive: Costco has a consensus “Moderate Buy” rating from 33 analysts and an average price target of $1,087.40, supported by strong comparable-sales growth, e-commerce momentum and recent earnings that exceeded expectations.
• Valuation and insider activity are key considerations: Costco trades at roughly 48 times earnings, while two executives recently sold shares. The company also declared a quarterly dividend of $1.47 per share, representing a 0.6% yield.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report)'s stock price rose 1.1% during trading on Friday after Tigress Financial raised their price target on the stock from $1,065.00 to $1,250.00. Tigress Financial currently has a buy rating on the stock. Costco Wholesale traded as high as $993.19 and last traded at $989.11. Approximately 2,382,518 shares traded hands during mid-day trading, an increase of 9% from the average session volume of 2,194,810 shares. The stock had previously closed at $978.01.

COST has been the topic of several other research reports. Argus reaffirmed a "buy" rating and set a $1,230.00 price objective on shares of Costco Wholesale in a report on Monday, September 28th. Jefferies Financial Group lowered their target price on Costco Wholesale from $1,130.00 to $1,100.00 in a research note on Friday, September 25th. Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a research report on Monday, September 28th. BTIG Research restated a "buy" rating and set a $1,125.00 target price on shares of Costco Wholesale in a research report on Wednesday, September 23rd. Finally, Truist Financial cut their price target on Costco Wholesale from $1,011.00 to $955.00 and set a "hold" rating on the stock in a research note on Friday, September 25th. Twenty-four research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,087.40.

Insider Buying and Selling at Costco Wholesale

In related news, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the completion of the sale, the executive vice president directly owned 7,134 shares of the company's stock, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP William Richard Wilcox sold 1,100 shares of the firm's stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the sale, the executive vice president owned 3,094 shares in the company, valued at $2,964,701.74. This trade represents a 26.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.10% of the company's stock.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Improved comparable sales: Costco’s September comparable sales growth accelerated to 7.6%, while reported net sales rose 13% year over year to $30.02 billion. Digitally enabled sales increased 19%, reinforcing the strength of Costco’s membership base and e-commerce operations. September Sales Growth and Costco’s Outlook
• Positive Sentiment: Analyst price-target increase: Tigress Financial raised its Costco price target 17%, from $1,065 to $1,250, and maintained a Buy rating. The firm cited Costco’s digital growth, membership expansion and resilient consumer demand, implying substantial upside from recent trading levels. Tigress Financial Raises Costco Price Target
• Positive Sentiment: Technical and defensive support: COST reclaimed its 50-day and 200-day moving averages, while investors continued rotating toward retailers selling everyday necessities amid elevated inflation and economic uncertainty. Costco Fundamental and Technical Signals
• Positive Sentiment: Shareholder return: Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. The payout highlights continued cash-generation capacity, though the yield remains modest. Costco Quarterly Dividend Announcement
• Neutral Sentiment: Costco’s strong growth outlook is balanced by margin pressure and a valuation near 48 times earnings, meaning investors may require continued membership, sales and profit growth to justify the premium.
• Negative Sentiment: Higher interest rates and persistent inflation could pressure discretionary spending and market valuations. An executive’s sale of 1,100 shares is a minor sentiment negative, but not necessarily a signal of deteriorating fundamentals.

Institutional Investors Weigh In On Costco Wholesale

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Banque Pictet & Cie SA boosted its holdings in Costco Wholesale by 6.5% during the third quarter. Banque Pictet & Cie SA now owns 7,378 shares of the retailer's stock worth $6,716,000 after purchasing an additional 448 shares during the last quarter. Rise Advisors LLC lifted its position in Costco Wholesale by 12.4% during the 3rd quarter. Rise Advisors LLC now owns 800 shares of the retailer's stock worth $729,000 after buying an additional 88 shares in the last quarter. Selective Wealth Management Inc. lifted its position in Costco Wholesale by 9.4% during the 3rd quarter. Selective Wealth Management Inc. now owns 654 shares of the retailer's stock worth $640,000 after buying an additional 56 shares in the last quarter. Hanson & Doremus Investment Management boosted its stake in shares of Costco Wholesale by 1.4% during the 3rd quarter. Hanson & Doremus Investment Management now owns 10,263 shares of the retailer's stock worth $9,343,000 after buying an additional 137 shares during the last quarter. Finally, Perryman Financial Advisory Inc. AD boosted its stake in shares of Costco Wholesale by 1.2% during the 3rd quarter. Perryman Financial Advisory Inc. AD now owns 11,038 shares of the retailer's stock worth $10,048,000 after buying an additional 132 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Costco Wholesale Stock Performance

The company has a market capitalization of $438.30 billion, a price-to-earnings ratio of 47.64, a P/E/G ratio of 4.20 and a beta of 0.88. The stock's 50 day moving average price is $932.33 and its 200 day moving average price is $963.09. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.54 by $0.21. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The business had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. During the same quarter in the previous year, the business earned $5.87 earnings per share. Costco Wholesale's quarterly revenue was up 11.1% on a year-over-year basis. Analysts expect that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be given a dividend of $1.47 per share. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's payout ratio is 28.32%.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.

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