Erste Group Bank Issues Positive Forecast for COST Earnings

Costco Wholesale Corporation (NASDAQ:COST) – Analysts at Erste Group Bank lifted their FY2028 earnings per share estimates for Costco Wholesale in a report released on Wednesday, October 21st. Erste Group Bank analyst H. Engel now anticipates that the retailer will post earnings per share of $25.07 for the year, up from their prior estimate of $25.01. The consensus estimate for Costco Wholesale’s current full-year earnings is $22.70 per share.

COST has been the subject of several other research reports. 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 for the company in a research note on Friday, September 25th. Freedom Broker cut their price objective on shares of Costco Wholesale from $1,030.00 to $1,010.00 and set a “buy” rating for the company in a report on Friday, September 25th. DA Davidson increased their target price 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, September 25th. Mizuho lowered their target price on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating on the stock in a report on Friday, September 25th. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and issued a $1,000.00 price target on shares of Costco Wholesale in a research report on Friday, October 9th. Twenty-five analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Costco Wholesale presently has an average rating of “Moderate Buy” and a consensus price target of $1,086.19.

Costco Wholesale Trading Up 2.0%

COST stock opened at $1,018.21 on Friday. Costco Wholesale has a 52 week low of $844.06 and a 52 week high of $1,096.50. The company has a market capitalization of $451.20 billion, a PE ratio of 49.05, a price-to-earnings-growth ratio of 4.27 and a beta of 0.88. The company’s 50-day simple moving average is $937.12 and its 200 day simple moving average is $962.93. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06.

Costco Wholesale (NASDAQ:COST) last announced its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (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 company had revenue of $95.72 billion during the quarter, compared to analysts’ expectations of $94.97 billion. During the same quarter in the previous year, the business posted $5.87 earnings per share. Costco Wholesale’s quarterly revenue was up 11.1% on a year-over-year basis.

Hedge Funds Weigh In On Costco Wholesale

Hedge funds have recently bought and sold shares of the company. State Street Corp lifted its holdings in shares of Costco Wholesale by 31.7% during the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock worth $22,359,224,000 after acquiring an additional 5,749,362 shares during the period. Bank of America Corp DE increased its stake in Costco Wholesale by 11.5% in the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock valued at $7,488,203,000 after acquiring an additional 773,651 shares during the last quarter. Diamant Asset Management Inc. increased its stake in Costco Wholesale by 99,278.0% in the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock valued at $672,690,000 after acquiring an additional 6,720,130 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Costco Wholesale by 5.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,068,312 shares of the retailer’s stock valued at $2,870,314,000 after purchasing an additional 160,893 shares in the last quarter. Finally, Amundi raised its position in Costco Wholesale by 11.1% during the first quarter. Amundi now owns 2,839,016 shares of the retailer’s stock valued at $2,828,881,000 after purchasing an additional 283,360 shares in the last quarter. 68.48% of the stock is owned by institutional investors.

Insider Buying and Selling at Costco Wholesale

In related news, EVP William Richard Wilcox sold 1,100 shares of the firm’s stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total value of $1,054,031.00. Following the transaction, the executive vice president owned 3,094 shares in the company, valued at approximately $2,964,701.74. This trade represents a 26.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Claudine Adamo sold 2,200 shares of the business’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the transaction, the executive vice president directly owned 7,134 shares of the company’s stock, valued at approximately $6,534,244.62. This trade represents a 23.57% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.10% of the company’s stock.

Costco Wholesale Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be issued a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Friday, October 30th. Costco Wholesale’s dividend payout ratio is 28.32%.

Key Costco Wholesale News

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

• Positive Sentiment: Analyst optimism supports the stock. Tigress Financial raised its price target to $1,250, while CICC initiated coverage with an “outperform” rating. The recommendations reinforce the bullish view that Costco can continue gaining from its resilient sales and membership economics. Tigress Financial raises target CICC initiates coverage
• Positive Sentiment: Costco is expanding its physical footprint. Reports of a planned Rhode Island warehouse and a new South Meridian location point to continued store growth, which could increase membership, sales, and local market penetration over time. Costco to open in Rhode Island
• Positive Sentiment: Membership engagement remains a key strength. Costco’s analysis of which members spend the most could help it better target high-value customers and lift sales and profitability. Its long-term returns and recurring membership model continue to attract investor interest. Costco reveals which members spend the most money
• Neutral Sentiment: A stock split remains speculative. Costco’s CEO said the possibility is discussed regularly by the board, but no split was announced. A split could improve accessibility for employees and smaller investors, although it would not change the company’s underlying value or fundamentals. Costco stock split discussion
• Negative Sentiment: Competition could intensify. Kroger plans to invest heavily in lower prices after acknowledging market-share losses to Walmart and Costco. Greater grocery price competition could pressure Costco’s margins or slow market-share gains. Kroger targets Walmart and Costco

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.