Costco Wholesale (NASDAQ:COST) Price Target Raised to $1,040.00

Costco Wholesale (NASDAQ:COST) had its target price boosted by DA Davidson from $1,000.00 to $1,040.00 in a report published on Friday, Marketbeat reports. The firm currently has a neutral rating on the retailer’s stock.

Several other analysts also recently commented on COST. Robert W. Baird set a $1,175.00 price objective on Costco Wholesale in a research note on Friday. Oppenheimer restated an “outperform” rating and set a $1,160.00 price target on shares of Costco Wholesale in a research note on Wednesday, September 16th. UBS Group reiterated a “buy” rating on shares of Costco Wholesale in a research report on Thursday, September 17th. JPMorgan Chase & Co. dropped their price objective on shares of Costco Wholesale from $1,100.00 to $1,015.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, Wells Fargo & Company reduced 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. Twenty-two research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $1,045.67.

Costco Wholesale Stock Performance

Shares of Costco Wholesale stock opened at $922.77 on Friday. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. The company has a market capitalization of $409.23 billion, a P/E ratio of 44.45, a PEG ratio of 3.86 and a beta of 0.86. Costco Wholesale has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company’s fifty day moving average is $933.96 and its two-hundred day moving average is $967.60.

Costco Wholesale (NASDAQ:COST) last announced its earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating 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 during the quarter, compared to analysts’ expectations of $94.97 billion. Analysts forecast that Costco Wholesale will post 22.57 earnings per share for the current year.

Costco Wholesale Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were issued a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale’s dividend payout ratio is currently 28.32%.

Institutional Investors Weigh In On Costco Wholesale

Institutional investors have recently made changes to their positions in the stock. QRG Capital Management Inc. grew its stake in shares of Costco Wholesale by 42.0% during the 2nd quarter. QRG Capital Management Inc. now owns 117,027 shares of the retailer’s stock worth $109,475,000 after purchasing an additional 34,608 shares during the period. Envestnet Portfolio Solutions Inc. boosted its holdings in Costco Wholesale by 49.6% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 21,023 shares of the retailer’s stock worth $19,666,000 after buying an additional 6,969 shares in the last quarter. Envestnet Asset Management Inc. grew its position in 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 buying an additional 424,982 shares during the period. State Street Corp increased its holdings in Costco Wholesale by 31.7% in the second quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock valued at $22,359,224,000 after buying an additional 5,749,362 shares in the last quarter. Finally, Silicon Valley Capital Partners increased its holdings in Costco Wholesale by 2.3% in the second quarter. Silicon Valley Capital Partners now owns 12,243 shares of the retailer’s stock valued at $11,419,000 after buying an additional 271 shares in the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories 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.