Costco Wholesale (NASDAQ:COST) Receives “Neutral” Rating from DA Davidson

DA Davidson reiterated their neutral rating on shares of Costco Wholesale (NASDAQ:COST) in a research report report published on Friday,Benzinga reports. The brokerage currently has a $1,000.00 price target on the retailer’s stock.

A number of other research analysts have also weighed in on COST. Robert W. Baird set a $1,100.00 price objective on Costco Wholesale in a report on Thursday, February 5th. Jefferies Financial Group reissued a “buy” rating and issued a $1,050.00 price objective on shares of Costco Wholesale in a report on Thursday, March 5th. Bank of America increased their price objective on Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a “buy” rating in a report on Friday. Telsey Advisory Group increased their price objective on Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an “outperform” rating in a report on Thursday, April 9th. Finally, Gordon Haskett increased their price objective on Costco Wholesale from $1,000.00 to $1,100.00 in a report on Tuesday, February 3rd. Twenty-one equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $1,056.32.

Costco Wholesale Trading Down 3.9%

Shares of NASDAQ:COST opened at $956.32 on Friday. The business’s 50-day moving average is $1,007.80 and its 200 day moving average is $962.48. Costco Wholesale has a 1 year low of $844.06 and a 1 year high of $1,096.50. The firm has a market capitalization of $424.27 billion, a P/E ratio of 49.73, a P/E/G ratio of 4.90 and a beta of 0.92. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59.

Costco Wholesale (NASDAQ:COST) last announced its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate 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 for the quarter, compared to analyst estimates of $69.68 billion. During the same period in the prior year, the company earned $4.28 earnings per share. On average, research analysts predict that Costco Wholesale will post 20.33 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were issued a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a yield of 0.6%. This is a positive change from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale’s dividend payout ratio is 30.58%.

Insider Buying and Selling

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

Institutional Trading of Costco Wholesale

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Krane Financial Solutions LLC acquired a new stake in Costco Wholesale during the first quarter worth about $709,000. Cozad Asset Management Inc. grew its holdings in Costco Wholesale by 1.9% during the first quarter. Cozad Asset Management Inc. now owns 18,032 shares of the retailer’s stock worth $17,967,000 after acquiring an additional 334 shares during the period. Lavelle Capital LP acquired a new stake in Costco Wholesale during the first quarter worth about $631,000. Blue Fin Capital Inc. grew its holdings in Costco Wholesale by 0.7% during the first quarter. Blue Fin Capital Inc. now owns 12,132 shares of the retailer’s stock worth $12,089,000 after acquiring an additional 85 shares during the period. Finally, Carlson Capital L.P. grew its holdings in Costco Wholesale by 75.6% during the first quarter. Carlson Capital L.P. now owns 1,405 shares of the retailer’s stock worth $1,400,000 after acquiring an additional 605 shares during the period. 68.48% of the stock is owned by institutional investors and hedge funds.

Key Costco Wholesale News

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

• Positive Sentiment: Costco posted strong third-quarter results, with revenue of $70.53 billion topping estimates and same-store sales rising 9.8%, showing that members are still spending on essentials and value-focused purchases.
• Positive Sentiment: Gasoline sales were a standout, with Costco’s gas stations setting all-time or record volume levels as drivers sought lower-priced fuel amid elevated energy costs. Article Title
• Positive Sentiment: Digital growth and membership strength continued to support results, helping offset margin pressure and reinforcing Costco’s value-driven model.
• Positive Sentiment: Several Wall Street firms raised price targets or reiterated bullish ratings, including Bank of America, Goldman Sachs, Bernstein, BTIG, and Morgan Stanley, signaling confidence in Costco’s long-term fundamentals.
• Neutral Sentiment: DA Davidson reaffirmed a neutral rating with a $1,000 target, suggesting modest upside but not a strong catalyst for a re-rating.
• Neutral Sentiment: Costco said it will return U.S. tariff refunds to members “in some form,” which may help customer loyalty but does not yet provide a clear financial boost.
• Negative Sentiment: EPS of $4.93 missed consensus by a small margin, and investors appear focused on the earnings shortfall more than the sales beat.
• Negative Sentiment: Margin pressure from higher costs and a premium valuation have prompted some traders to sell after the report, limiting enthusiasm despite the strong top-line performance.

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.