Costco Wholesale Corporation (NASDAQ:COST – Get Free Report) shares fell 4.2% during trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $1,110.00 to $1,100.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Costco Wholesale traded as low as $907.68 and last traded at $912.97. Approximately 4,530,196 shares changed hands during mid-day trading, an increase of 101% from the average session volume of 2,248,959 shares. The stock had previously closed at $953.13.
Other research analysts have also issued research reports about the company. The Goldman Sachs Group lifted their target price on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Citigroup initiated coverage on Costco Wholesale in a report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 price target on the stock. Deutsche Bank Aktiengesellschaft increased their target price on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. TD Cowen reaffirmed a “buy” rating and set a $1,175.00 price target on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Finally, BTIG Research reaffirmed a “buy” rating and issued a $1,125.00 price objective on shares of Costco Wholesale in a research note on Friday, May 29th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $1,061.10.
Read Our Latest Stock Analysis on COST
Insider Activity
Costco Wholesale News Roundup
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Costco reported strong June results, with net sales up 10.6% year over year and comparable sales rising 8.8%; digitally enabled comparable sales jumped 20.9%, showing that demand and online momentum remain solid. Article Title
- Positive Sentiment: Analysts and recent commentary continue to highlight Costco’s resilient traffic, defensive business model, and strong membership-driven economics, with several firms keeping Buy ratings and upbeat price targets. Article Title
- Neutral Sentiment: Costco also declared a quarterly dividend, reinforcing its shareholder-return profile, but the payout was not a major catalyst for the stock. Article Title
- Neutral Sentiment: Costco expanded its digital wallet checkout feature, which could improve convenience and member experience over time, though the immediate market impact is likely limited. Article Title
- Negative Sentiment: Shares are falling as investors look past the strong sales headline and focus on slower June growth versus earlier months, uneven regional performance, and the fact that gas and foreign exchange helped boost results. Article Title
- Negative Sentiment: Valuation concerns are also weighing on sentiment, with commentary noting the stock may have become expensive after a strong run; JPMorgan trimmed its price target to $1,100, adding to profit-taking pressure. Article Title
- Negative Sentiment: A proposed class-action lawsuit over protein powder allegedly containing heavy metals could create headline risk and add some near-term overhang for the stock. Article Title
Institutional Investors Weigh In On Costco Wholesale
A number of large investors have recently bought and sold shares of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in Costco Wholesale during the 4th quarter valued at $27,000. Lifetime Wealth Management P.C. acquired a new stake in shares of Costco Wholesale during the 4th quarter worth about $28,000. Mcguire Capital Advisors Inc. bought a new position in shares of Costco Wholesale in the fourth quarter valued at approximately $28,000. Entrust Financial LLC acquired a new position in Costco Wholesale in the fourth quarter worth $31,000. Finally, Joseph Group Capital Management bought a new stake in Costco Wholesale during the 4th quarter worth about $33,000. 68.48% of the stock is currently owned by institutional investors.
Costco Wholesale Price Performance
The company’s 50 day moving average price is $986.93 and its 200 day moving average price is $975.26. The firm has a market capitalization of $404.88 billion, a P/E ratio of 45.92, a PEG ratio of 4.59 and a beta of 0.88. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61.
Costco Wholesale (NASDAQ:COST – Get Free Report) last released its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). The firm had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same quarter in the previous year, the firm earned $4.28 EPS. As a group, sell-side analysts anticipate that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal year.
Costco Wholesale Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Friday, July 24th will be given a dividend of $1.47 per share. The ex-dividend date is Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s payout ratio is presently 29.58%.
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.
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