Royal Bank Of Canada Upgrades Costco Wholesale (NASDAQ:COST) to Hold

Key Points

• Royal Bank of Canada upgraded Costco Wholesale to a Hold rating, reflecting a more neutral stance on the stock despite continued optimism from some analysts.
• Wall Street sentiment on Costco remains broadly positive overall: 22 analysts rate it Buy, 12 Hold, and 1 Sell, with a consensus rating of Moderate Buy and an average price target of $1,059.07.
• Costco recently reported Q4 EPS of $4.93, just below expectations, while revenue came in above estimates at $70.53 billion; the stock was trading around $926.43 and is up about 1.1% in the session.

Costco Wholesale (NASDAQ:COST - Get Free Report) was upgraded by research analysts at Royal Bank Of Canada to a "hold" rating in a research report issued on Monday,Zacks.com reports.

Several other equities research analysts have also commented on COST. Sanford C. Bernstein upped their price target on Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research note on Friday, May 29th. Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a report on Monday, June 1st. Wells Fargo & Company increased their target price on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a research report on Thursday, April 9th. TD Cowen restated a "buy" rating and issued a $1,175.00 price target on shares of Costco Wholesale in a report on Wednesday, June 3rd. Finally, Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday, June 1st. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $1,059.07.

Costco Wholesale Stock Up 1.1%

Shares of COST opened at $926.43 on Monday. The firm has a market cap of $410.85 billion, a PE ratio of 46.60, a price-to-earnings-growth ratio of 4.44 and a beta of 0.88. The company's fifty day moving average is $981.90 and its two-hundred day moving average is $976.64. 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 quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). The company had revenue of $70.53 billion for the quarter, compared to analysts' expectations of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period in the prior year, the firm earned $4.28 earnings per share. Analysts forecast that Costco Wholesale will post 20.38 earnings per share for the current year.

Insider Activity

In other news, Director Kenneth D. Denman sold 885 shares of the business's stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director directly owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Costco Wholesale

Large investors have recently added to or reduced their stakes in the company. Diamant Asset Management Inc. increased its position in shares of Costco Wholesale by 99,278.0% during the first 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 during the last quarter. Norges Bank purchased a new stake in Costco Wholesale during the 4th quarter worth approximately $5,195,415,000. Corient Private Wealth LLC raised its position in shares of Costco Wholesale by 838.9% in the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock valued at $5,282,182,000 after purchasing 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 valued at $1,539,346,000 after buying an additional 1,607,833 shares during the last quarter. Finally, Assenagon Asset Management S.A. grew its position in shares of Costco Wholesale by 1,586.8% during the fourth quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer's stock worth $980,857,000 after buying an additional 1,070,005 shares in the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.

More Costco Wholesale News

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

• Positive Sentiment: RBC Capital said Costco is one of retail’s best stories and can keep taking market share thanks to its differentiated membership model. RBC says Costco is one of retail’s best stories, but flags rich valuation
• Positive Sentiment: Analysts pointed to resilient June sales and surging digital growth, which supports the case that Costco’s underlying demand is still strong. Are Costco's June Sales Enough to Defend Its Rich Valuation?
• Positive Sentiment: RBC’s coverage and a separate market note described Costco as a top industry player, which likely reinforced investor confidence in the stock. Costco (COST) Stock Climbs as RBC Names Retailer a Top Industry Player Despite Hold Rating

Costco Wholesale Company Profile

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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