Jefferies Financial Group Has Lowered Expectations for Costco Wholesale (NASDAQ:COST) Stock Price

Costco Wholesale (NASDAQ:COST) had its price target lowered by equities research analysts at Jefferies Financial Group from $1,130.00 to $1,100.00 in a research report issued to clients and investors on Friday. Jefferies Financial Group’s target price points to a potential upside of 19.21% from the stock’s previous close.

A number of other brokerages have also issued reports on COST. Royal Bank Of Canada restated a “sector perform” rating and issued a $1,000.00 price target on shares of Costco Wholesale in a research note on Friday. UBS Group reiterated a “buy” rating on shares of Costco Wholesale in a research report on Thursday, September 17th. DA Davidson raised their price target on shares of Costco Wholesale from $1,000.00 to $1,040.00 and gave the stock a “neutral” rating in a research report on Friday. Freedom Broker cut their target price on shares of Costco Wholesale from $1,030.00 to $1,010.00 and set a “buy” rating on the stock in a report on Friday. Finally, JPMorgan Chase & Co. reduced their price objective on Costco Wholesale from $1,100.00 to $1,015.00 and set an “overweight” rating for the company in a research report on Friday. Twenty-two equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $1,045.67.

Costco Wholesale Stock Performance

Shares of COST stock opened at $922.77 on Friday. The company’s fifty day simple moving average is $933.96 and its 200-day simple moving average is $967.86. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. Costco Wholesale has a 52 week low of $844.06 and a 52 week high of $1,096.50. The company has a market cap of $409.23 billion, a PE ratio of 44.45, a P/E/G ratio of 3.76 and a beta of 0.86.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping the consensus estimate of $6.54 by $0.21. Costco Wholesale had a return on equity of 28.43% and a net margin of 3.04%.The firm had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. As a group, equities research analysts anticipate that Costco Wholesale will post 22.5 EPS for the current year.

Institutional Investors Weigh In On Costco Wholesale

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Palisade Asset Management LLC increased its position in shares of Costco Wholesale by 1.4% in the fourth quarter. Palisade Asset Management LLC now owns 702 shares of the retailer’s stock worth $605,000 after acquiring an additional 10 shares in the last quarter. Graybill Wealth Management LTD. increased its stake in Costco Wholesale by 0.3% in the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer’s stock valued at $2,754,000 after buying an additional 10 shares during the period. Wealth Effects LLC boosted its stake in shares of Costco Wholesale by 1.2% during the 1st 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 period. Folger Nolan Fleming Douglas Capital Management Inc. grew its holdings in shares of Costco Wholesale by 1.8% during the 1st 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 in the last quarter. Finally, First National Bank of Hutchinson increased its stake in shares of Costco Wholesale by 0.9% in the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer’s stock worth $1,094,000 after acquiring an additional 10 shares during the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Quarterly beat and resilient demand: Costco reported $6.75 in adjusted EPS versus a $6.54 consensus estimate and revenue of $95.72 billion versus expectations of $94.97 billion. Net income rose 14.9% year over year, while comparable sales increased 9.4%, reflecting continued demand for essential goods amid economic uncertainty. Costco fourth-quarter earnings
• Positive Sentiment: Digital and membership engagement remain healthy: Digitally enabled comparable sales surged 19.5%, supported by broad-based gains across categories. Costco also highlighted younger members, strong renewal rates and plans to accelerate digital investment. Costco Q4 earnings call highlights
• Positive Sentiment: Expansion supports the long-term growth story: Management plans to open 33 new warehouses in fiscal 2027, while pharmacy, gasoline and international operations contributed to the latest results. Analysts including Goldman Sachs, UBS and Bernstein remain constructive, despite adjusting some price targets. Costco expansion plans
• Neutral Sentiment: Tariff refunds boosted earnings: A $184 million tariff refund contributed approximately $0.15 per share to fourth-quarter EPS. Costco said most of the money will be reinvested in lower prices for produce, meat, beverages and other merchandise, which may support customer loyalty but makes the earnings beat less reflective of recurring profitability. Costco tariff refunds
• Negative Sentiment: Membership growth is the key concern: Analysts noted that membership-fee growth has slowed significantly. Because recurring membership income is central to Costco’s valuation and future guidance, investors may require continued gains in members and renewal rates to justify the stock’s elevated earnings multiple.
• Negative Sentiment: Valuation and cost pressures temper enthusiasm: With a price-to-earnings ratio above 46, some analysts argue that much of Costco’s execution is already priced in. Rising memory-component costs also led to a $152 million electronics-related charge, while several firms lowered price targets following the report. Costco valuation analysis

Costco Wholesale Company Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.