Costco Wholesale’s (COST) “Buy” Rating Reiterated at Argus

Argus restated their buy rating on shares of Costco Wholesale (NASDAQ:COST) in a report published on Monday morning,Benzinga reports. They currently have a $1,230.00 target price on the retailer’s stock.

A number of other brokerages also recently commented on COST. Raymond James Financial decreased their price objective on shares of Costco Wholesale from $1,100.00 to $1,050.00 and set an “outperform” rating for the company in a research report on Friday, September 25th. HC Wainwright reaffirmed a “buy” rating on shares of Costco Wholesale in a report on Monday, June 1st. Wells Fargo & Company cut their target price on shares of Costco Wholesale from $1,000.00 to $950.00 and set an “equal weight” rating for the company in a research note on Friday, September 25th. Bank of America reduced their price target on Costco Wholesale from $1,200.00 to $1,095.00 and set a “buy” rating for the company in a report on Wednesday, September 16th. Finally, Roth Capital reissued a “sell” rating and set a $781.00 price target on shares of Costco Wholesale in a research report on Friday, September 25th. Twenty-two research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $1,046.27.

Costco Wholesale Trading Down 1.5%

NASDAQ COST opened at $910.34 on Monday. Costco Wholesale has a 12 month low of $844.06 and a 12 month high of $1,096.50. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. The stock has a 50 day moving average of $933.27 and a 200-day moving average of $965.95. The company has a market cap of $403.72 billion, a PE ratio of 43.85, a PEG ratio of 3.95 and a beta of 0.86.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The business had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. During the same period in the previous year, the company earned $5.87 earnings per share. The firm’s revenue for the quarter was up 11.1% on a year-over-year basis. On average, equities research analysts anticipate that Costco Wholesale will post 22.86 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were given a $1.47 dividend. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio is presently 28.32%.

Insider Activity

In related news, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale stock in a transaction dated Tuesday, September 29th. The shares were 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 owned 7,134 shares of the company’s stock, valued at approximately $6,534,244.62. The trade was a 23.57% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Greenwich Wealth Management LLC lifted its position in Costco Wholesale by 48.3% during the second quarter. Greenwich Wealth Management LLC now owns 2,000 shares of the retailer’s stock worth $1,871,000 after acquiring an additional 651 shares during the last quarter. QRG Capital Management Inc. grew its position in shares of Costco Wholesale by 42.0% in the second quarter. QRG Capital Management Inc. now owns 117,027 shares of the retailer’s stock valued at $109,475,000 after purchasing an additional 34,608 shares during the last quarter. Envestnet Portfolio Solutions Inc. grew its position in shares of Costco Wholesale by 49.6% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 21,023 shares of the retailer’s stock valued at $19,666,000 after purchasing an additional 6,969 shares during the last quarter. Envestnet Asset Management Inc. increased its stake in shares of Costco Wholesale by 68.9% during the second quarter. Envestnet Asset Management Inc. now owns 1,042,046 shares of the retailer’s stock worth $974,803,000 after purchasing an additional 424,982 shares during the period. Finally, State Street Corp increased its stake in shares of Costco Wholesale by 31.7% during the second quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock worth $22,359,224,000 after purchasing an additional 5,749,362 shares during the period. 68.48% of the stock is owned by institutional investors.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco delivered a strong fiscal fourth quarter, with revenue rising 11.1% year over year to $95.72 billion and earnings of $6.75 per share, exceeding Wall Street expectations. Comparable sales increased 9.4% overall and 10.7% in the U.S., supported by higher customer traffic and larger baskets. Costco’s Sales Momentum Builds as Q4 Traffic and Ticket Rise
• Positive Sentiment: Membership revenue increased approximately 11% to $5.907 billion, while executive-member penetration reached a record level. The recurring fee stream, strong renewal trends, digital growth and expansion of warehouse locations continue to support Costco’s long-term investment case. Costco Collects More Membership Fees
• Positive Sentiment: Management highlighted continued momentum in fresh food, gas, pharmacy, travel and e-commerce. New or converted Business Center locations, including projects in Haltom City and Kansas City, should broaden Costco’s commercial-customer base and add jobs over time. Costco Continues to Gain Momentum in Fresh Food
• Neutral Sentiment: Analysts and financial commentators remain divided: Costco’s earnings consistency and renewal rates are viewed as exceptional, but the stock’s elevated valuation leaves limited room for execution mistakes. Daiwa Securities lowered its price target to $950 from $975 while retaining a Neutral rating. Daiwa Securities Adjusts Price Target
• Negative Sentiment: Executive Vice President Claudine Adamo sold 2,200 shares for approximately $2.02 million, reducing her direct holdings by 23.57%. The filing does not establish a change in Costco’s fundamentals, but insider selling can weigh on sentiment, particularly while the shares trade at a high earnings multiple.

About Costco Wholesale

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.