Sanford C. Bernstein Cuts Costco Wholesale (NASDAQ:COST) Price Target to $1,143.00

Costco Wholesale (NASDAQ:COST) had its price target lowered by Sanford C. Bernstein from $1,144.00 to $1,143.00 in a research report sent to investors on Friday, Marketbeat Ratings reports. The brokerage currently has an outperform rating on the retailer’s stock.

A number of other analysts also recently issued reports on COST. Guggenheim reaffirmed a “neutral” rating on shares of Costco Wholesale in a research note on Monday, June 1st. TD Cowen reissued a “buy” rating and issued a $1,175.00 price objective on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Royal Bank Of Canada restated a “sector perform” rating on shares of Costco Wholesale in a report on Tuesday, September 15th. Roth Capital increased their price objective on Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a research note on Friday, May 29th. Finally, Bank of America dropped their target price on shares of Costco Wholesale from $1,200.00 to $1,095.00 and set a “buy” rating on the stock in a report on Wednesday, September 16th. Twenty-two analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Costco Wholesale has an average rating of “Moderate Buy” and a consensus price target of $1,045.67.

Costco Wholesale Price Performance

NASDAQ:COST opened at $922.77 on Friday. The business’s 50-day simple moving average is $933.96 and its two-hundred day simple moving average is $967.60. The stock has a market cap of $409.23 billion, a PE ratio of 44.45, a P/E/G ratio of 3.86 and a beta of 0.86. Costco Wholesale has a 52 week low of $844.06 and a 52 week high of $1,096.50. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. The company had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. As a group, analysts forecast that Costco Wholesale will post 22.57 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 paid 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 yield of 0.6%. Costco Wholesale’s dividend payout ratio is presently 28.32%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. State Street Corp raised its position in 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 buying an additional 5,749,362 shares during the last quarter. Bank of America Corp DE raised its position in shares of 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 worth $7,488,203,000 after acquiring an additional 773,651 shares during the period. Diamant Asset Management Inc. boosted its position in Costco Wholesale by 99,278.0% during the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after purchasing an additional 6,720,130 shares in the last quarter. Corient Private Wealth LLC lifted its position in shares of Costco Wholesale by 838.9% during the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock valued at $5,282,182,000 after buying an additional 5,472,968 shares in the last quarter. Finally, Norges Bank purchased a new position in Costco Wholesale during the fourth quarter valued at $5,195,415,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Key Headlines 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.