Costco Wholesale’s (COST) Buy Rating Reiterated at BTIG Research

BTIG Research reiterated their buy rating on shares of Costco Wholesale (NASDAQ:COST) in a research report released on Wednesday morning,Benzinga reports. BTIG Research currently has a $1,125.00 price objective on the retailer’s stock.

Other research analysts have also issued reports about the stock. Guggenheim reaffirmed a “neutral” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Sanford C. Bernstein set a $1,144.00 price target on Costco Wholesale in a research note on Friday, September 4th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $1,091.00 price objective on shares of Costco Wholesale in a research note on Friday, September 4th. Royal Bank Of Canada restated a “sector perform” rating on shares of Costco Wholesale in a report on Tuesday, September 15th. Finally, Truist Financial lifted their target price on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a research note on Friday, May 29th. Twenty-two research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $1,044.00.

Costco Wholesale Stock Performance

Shares of COST stock opened at $922.77 on Wednesday. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The company has a market capitalization of $409.23 billion, a P/E ratio of 44.45, a P/E/G ratio of 3.76 and a beta of 0.86. Costco Wholesale has a 12-month low of $844.06 and a 12-month high of $1,096.50. The business’s 50 day moving average is $933.96 and its two-hundred day moving average is $967.86.

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 the consensus estimate of $6.54 by $0.21. The business had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 28.43%. Analysts expect that Costco Wholesale will post 22.5 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were given a dividend of $1.47 per share. The ex-dividend date was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is currently 29.58%.

Institutional Investors Weigh In On Costco Wholesale

A number of institutional investors and hedge funds have recently made changes to their positions in COST. State Street Corp boosted its holdings in shares of Costco Wholesale by 31.7% during the second quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock worth $22,359,224,000 after purchasing an additional 5,749,362 shares during the last quarter. Geode Capital Management LLC increased its stake in Costco Wholesale by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer’s stock valued at $8,919,573,000 after purchasing an additional 26,690 shares during the last quarter. Bank of America Corp DE lifted its position in Costco Wholesale by 11.5% during the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock worth $7,488,203,000 after buying an additional 773,651 shares during the period. Corient Private Wealth LLC lifted its position in Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock worth $5,282,182,000 after buying an additional 5,472,968 shares during the period. Finally, Norges Bank purchased a new position in Costco Wholesale during the fourth quarter worth about $5,195,415,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Costco Wholesale News Roundup

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.