UBS Group Forecasts Strong Price Appreciation for Costco Wholesale (NASDAQ:COST) Stock

Costco Wholesale (NASDAQ:COST) had its target price lifted by analysts at UBS Group from $1,205.00 to $1,275.00 in a note issued to investors on Wednesday,MarketScreener reports. The firm currently has a “buy” rating on the retailer’s stock. UBS Group’s price objective suggests a potential upside of 17.72% from the stock’s current price.

A number of other brokerages have also recently issued reports on COST. Bank of America began coverage on shares of Costco Wholesale in a report on Friday, February 27th. They issued a “buy” rating and a $1,185.00 target price on the stock. Wells Fargo & Company increased their price target on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 9th. The Goldman Sachs Group cut their price target on Costco Wholesale from $1,171.00 to $1,088.00 and set a “buy” rating on the stock in a report on Friday, March 6th. Truist Financial boosted their price objective on Costco Wholesale from $926.00 to $977.00 and gave the company a “hold” rating in a research report on Friday, March 6th. Finally, TD Cowen restated a “buy” rating on shares of Costco Wholesale in a research note on Friday, March 6th. Twenty-two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Costco Wholesale currently has an average rating of “Moderate Buy” and a consensus target price of $1,052.60.

Costco Wholesale Stock Performance

COST stock traded down $11.21 during trading on Wednesday, hitting $1,083.11. 280,082 shares of the company’s stock traded hands, compared to its average volume of 2,078,253. The stock has a market capitalization of $480.52 billion, a price-to-earnings ratio of 56.35, a price-to-earnings-growth ratio of 5.30 and a beta of 0.92. Costco Wholesale has a 52 week low of $844.06 and a 52 week high of $1,096.50. The stock has a fifty day moving average price of $1,004.71 and a two-hundred day moving average price of $957.59. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The company had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. During the same period last year, the firm posted $4.02 EPS. The company’s revenue for the quarter was up 9.2% on a year-over-year basis. As a group, equities analysts anticipate that Costco Wholesale will post 20.31 EPS for the current fiscal year.

Insider Buying and Selling at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of the business’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the transaction, the executive vice president directly owned 6,121 shares in the company, valued at approximately $6,139,485.42. The trade was a 10.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

Several hedge funds have recently added to or reduced their stakes in the business. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in Costco Wholesale in the fourth quarter worth about $27,000. Lifetime Wealth Management P.C. acquired a new position in Costco Wholesale during the 4th quarter valued at about $28,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale during the 4th quarter worth about $28,000. Hurley Capital LLC lifted its stake in shares of Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock worth $31,000 after acquiring an additional 18 shares during the period. Finally, Entrust Financial LLC acquired a new stake in shares of Costco Wholesale in the 4th quarter worth approximately $31,000. Institutional investors own 68.48% of the company’s stock.

Key Costco Wholesale News

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

• Positive Sentiment: Analysts and market watchers highlighted Costco as a long-term, low-risk stock, reinforcing the view that its stable membership model and defensive business profile remain attractive to investors. Costco (COST) – Among the 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds
• Positive Sentiment: Strong April sales, including solid comparable-store growth and digital gains, continued to support the case that Costco is benefiting from value-seeking consumers and can still grow even in a cautious spending environment. Costco’s April Sales Reinforce Its Case as the Ultimate Defensive Stock
• Positive Sentiment: Costco’s 13% dividend increase and long track record of annual raises added another catalyst, signaling management confidence and drawing income-oriented investors. Costco Stock (COST) Hits 52-Week High as Company Raises Dividend 13%
• Positive Sentiment: Several bullish previews ahead of Costco’s May 28 earnings report argued that the company does not need a blowout quarter to justify further upside, with steady membership renewals and execution likely enough to keep momentum going. Costco (COST) Doesn’t Need a Blowout Q3. Steady Renewals May Be Enough
• Neutral Sentiment: Costco also made headlines for new food court offerings, store expansion plans, and a property purchase, which are positive operational signs but likely less important for the stock’s near-term move than sales, dividends, and upcoming earnings. Forget chicken fingers, Costco quietly adds new food court item
• Negative Sentiment: One potential overhang is a Reuters report that Costco is asking a U.S. judge to reject a consumer class action tied to tariff refunds, which adds a legal risk even if it does not appear to be the main driver of the stock today. Costco urges US judge to reject consumer class action over tariff refunds

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.