Roth Mkm Issues Positive Forecast for Costco Wholesale (NASDAQ:COST) Stock Price

Key Points

• Roth Mkm raised its price target on Costco to $781 from $769, but kept a sell rating; that still implies about 18% downside from the current share price.
• Despite one bearish view, the broader analyst community remains constructive on Costco, with 21 Buy ratings, 11 Hold ratings, and an average Moderate Buy consensus price target of about $1,055.79.
• Costco shares fell 4.0% to $955.44 after the latest earnings report, where the company beat revenue estimates but missed EPS expectations by a small margin.

Costco Wholesale (NASDAQ:COST - Get Free Report) had its price objective upped by analysts at Roth Mkm from $769.00 to $781.00 in a research note issued on Friday,MarketScreener reports. The brokerage currently has a "sell" rating on the retailer's stock. Roth Mkm's price target suggests a potential downside of 18.26% from the stock's current price.

A number of other equities research analysts have also commented on COST. Telsey Advisory Group upped their price target on Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an "outperform" rating in a research report on Thursday, April 9th. JPMorgan Chase & Co. increased their target price on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an "overweight" rating in a research report on Friday, April 17th. Jefferies Financial Group restated a "buy" rating and issued a $1,050.00 price target on shares of Costco Wholesale in a research report on Thursday, March 5th. Truist Financial upped their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a research note on Friday. Finally, Daiwa Securities Group lifted their target price on shares of Costco Wholesale from $917.00 to $975.00 and gave the stock a "neutral" rating in a research note on Tuesday, March 10th. Twenty-one equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $1,055.79.

Costco Wholesale Trading Down 4.0%

Shares of COST stock traded down $39.76 during mid-day trading on Friday, reaching $955.44. 1,356,024 shares of the stock traded hands, compared to its average volume of 2,104,118. The company has a market cap of $423.88 billion, a price-to-earnings ratio of 49.77, a price-to-earnings-growth ratio of 4.94 and a beta of 0.92. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The stock's fifty day simple moving average is $1,008.28 and its two-hundred day simple moving average is $962.53. Costco Wholesale has a 1-year low of $844.06 and a 1-year high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings data 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). Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The business had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $69.68 billion. During the same quarter last year, the business earned $4.28 EPS. On average, research analysts anticipate that Costco Wholesale will post 20.33 EPS for the current fiscal year.

Insider Transactions at Costco Wholesale

In related news, EVP Claudine Adamo sold 730 shares of the stock in a transaction on Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the transaction, the executive vice president directly owned 6,121 shares of the company's stock, valued at $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Costco Wholesale

A number of institutional investors and hedge funds have recently made changes to their positions in COST. Lbmc Investment Advisors LLC boosted its position in Costco Wholesale by 0.5% during the 4th quarter. Lbmc Investment Advisors LLC now owns 2,041 shares of the retailer's stock valued at $1,760,000 after purchasing an additional 10 shares during the period. Graybill Wealth Management LTD. increased its position in Costco Wholesale by 0.3% in the fourth quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock worth $2,754,000 after buying an additional 10 shares during the period. Palisade Asset Management LLC lifted its stake in Costco Wholesale by 1.4% in the fourth quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock valued at $605,000 after buying an additional 10 shares during the last quarter. Wealth Effects LLC lifted its stake in Costco Wholesale by 1.2% in the first quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock valued at $871,000 after buying an additional 10 shares during the last quarter. Finally, Folger Nolan Fleming Douglas Capital Management Inc. boosted its holdings in shares of Costco Wholesale by 1.8% during the first quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock valued at $549,000 after acquiring an additional 10 shares during the period. Institutional investors own 68.48% of the company's stock.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco reported stronger-than-expected sales, with revenue of $70.53 billion versus estimates of $69.68 billion, and U.S. same-store sales rising 9.8%, showing that value-focused shoppers are still spending. Reuters article
• Positive Sentiment: Fuel demand was a standout driver, with Costco’s gas stations setting record volumes as drivers chased lower prices, adding an extra boost to traffic and sales. MarketWatch article
• Positive Sentiment: Digital demand and membership strength continue to support the long-term thesis, with multiple articles highlighting surging e-commerce activity and resilient member-driven growth. TipRanks article
• Positive Sentiment: Analysts remained bullish after the report, with BTIG and Morgan Stanley reaffirming positive ratings and raising price targets to $1,125 and $1,130, respectively. TipRanks article
• Neutral Sentiment: EPS came in at $4.93, slightly below the $4.98 consensus, so margin pressure remains a concern even as top-line momentum stays strong. MarketBeat earnings report
• Negative Sentiment: Gross margin and transportation costs are still pressuring profitability, which is why some commentary described the quarter as “mixed” despite the sales beat. Motley Fool article

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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