Costco Wholesale’s (COST) Neutral Rating Reaffirmed at DA Davidson

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

A number of other research analysts have also weighed in on the company. Raymond James Financial increased their price objective on Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an “outperform” rating in a report on Friday. Evercore set a $1,100.00 price target on Costco Wholesale in a research report on Monday. Northcoast Research set a $1,100.00 price objective on Costco Wholesale and gave the company a “buy” rating in a report on Wednesday, December 24th. BTIG Research reaffirmed a “buy” rating and set a $1,115.00 target price on shares of Costco Wholesale in a report on Thursday. Finally, The Goldman Sachs Group lowered their price objective on Costco Wholesale from $1,171.00 to $1,088.00 and set a “buy” rating on the stock in a research report on Friday. Twenty-two investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Costco Wholesale presently has an average rating of “Moderate Buy” and a consensus price target of $1,035.35.

Costco Wholesale Stock Performance

Costco Wholesale stock traded up $15.53 during mid-day trading on Friday, reaching $998.10. 2,706,109 shares of the company traded hands, compared to its average volume of 1,972,194. The firm’s fifty day moving average is $961.64 and its two-hundred day moving average is $936.05. The company has a market capitalization of $443.03 billion, a price-to-earnings ratio of 51.90, a price-to-earnings-growth ratio of 4.70 and a beta of 1.01. Costco Wholesale has a fifty-two week low of $844.06 and a fifty-two week high of $1,067.08. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.04 and a quick ratio of 0.53.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings data on Thursday, March 5th. The retailer reported $4.58 EPS for the quarter, topping the consensus estimate of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 29.37%. The business had revenue of $69.60 billion during the quarter, compared to the consensus estimate of $68.96 billion. During the same period in the previous year, the firm posted $4.02 earnings per share. The business’s revenue for the quarter was up 9.2% compared to the same quarter last year. On average, equities research analysts expect that Costco Wholesale will post 18.03 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were issued a $1.30 dividend. The ex-dividend date was Friday, January 30th. This represents a $5.20 dividend on an annualized basis and a yield of 0.5%. Costco Wholesale’s dividend payout ratio (DPR) is presently 27.85%.

Insider Transactions at Costco Wholesale

In related news, EVP Russell D. Miller sold 1,500 shares of the business’s stock in a transaction dated Friday, January 9th. The shares were sold at an average price of $916.32, for a total transaction of $1,374,480.00. Following the transaction, the executive vice president directly owned 8,240 shares in the company, valued at approximately $7,550,476.80. The trade was a 15.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP James C. Klauer sold 1,500 shares of the stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $939.00, for a total transaction of $1,408,500.00. Following the completion of the sale, the executive vice president owned 44,837 shares of the company’s stock, valued at approximately $42,101,943. The trade was a 3.24% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 6,915 shares of company stock valued at $6,317,097. Company insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

Hedge funds and other institutional investors have recently bought and sold shares of the company. Soundwatch Capital LLC grew its position in Costco Wholesale by 635.7% in the second quarter. Soundwatch Capital LLC now owns 2,553 shares of the retailer’s stock worth $25,000 after acquiring an additional 2,206 shares during the period. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of Costco Wholesale during the 4th quarter worth $27,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Costco Wholesale during the 4th quarter worth about $28,000. LFA Lugano Financial Advisors SA purchased a new stake in Costco Wholesale in the 2nd quarter valued at about $31,000. Finally, Hurley Capital LLC lifted its position in Costco Wholesale by 120.0% in the third quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock valued at $31,000 after buying an additional 18 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Q2 double‑beat — Costco reported revenue of ~$69.6B and GAAP EPS of $4.58, with comp‑store strength and membership fee growth that underpin near‑term sales momentum. This is the main catalyst supporting the rally. Costco Wholesale beats quarterly comparable sales estimates
• Positive Sentiment: Analyst upgrades and higher price targets — several brokers (notably a large Street high by BMO cited in coverage) raised targets and reiterated outperform/overweight views, adding upward pressure. Costco Stock Scores New Street‑High Price Target
• Positive Sentiment: Capital returns & balance‑sheet strength — commentary and notes on buybacks, a rising cash pile and the “special dividend” thesis are attracting income/return‑focused investors and support further upside. Costco Wholesale: Buy Now, Get Paid Later as Cash and Returns Build
• Positive Sentiment: Digital and membership momentum — online sales growth (~22.6%) and rising membership income are cited on the call as durable drivers of mix and margins, supporting investor confidence. Costco Digital Innovations Fuel 22.6% Online Growth
• Neutral Sentiment: Mixed analyst moves — while many raised targets, a few (e.g., Goldman) trimmed targets even as they kept buy calls; that creates a mix of conviction levels among institutional holders. Goldman Sachs adjusts price target on Costco
• Neutral Sentiment: Muted market reaction — despite the beat, some headlines note a tepid price move (and some pre‑market weakness) as investors weigh valuation metrics versus growth. That can lead to intraday volatility. Costco Stock Exhibits Muted Reaction Amid Double‑Beat Earnings Report
• Negative Sentiment: Valuation concerns and “red flags” narrative — some outlets argue the stock is expensive (high P/E, PEG) and list risks that could cap upside; those narratives are pressuring more value‑sensitive investors. Is Costco Too Expensive? 3 Red Flags That Could Send Shares Sliding

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.