Deutsche Bank Aktiengesellschaft Cuts Costco Wholesale (NASDAQ:COST) Price Target to $1,079.00

Costco Wholesale (NASDAQ:COST) had its price target lowered by Deutsche Bank Aktiengesellschaft from $1,091.00 to $1,079.00 in a report issued on Monday morning, MarketBeat reports. The brokerage currently has a buy rating on the retailer’s stock.

A number of other research analysts also recently issued reports on the stock. JPMorgan Chase & Co. dropped their price target on shares of Costco Wholesale from $1,100.00 to $1,015.00 and set an “overweight” rating on the stock in a research report on Friday, September 25th. DA Davidson increased their price objective 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. UBS Group reissued a “buy” rating on shares of Costco Wholesale in a research note on Thursday, September 17th. Wells Fargo & Company dropped their target price on shares of Costco Wholesale from $1,000.00 to $950.00 and set an “equal weight” rating on the stock in a report on Friday, September 25th. Finally, Guggenheim reaffirmed a “neutral” rating on shares of Costco Wholesale in a research report on Monday. Twenty-two investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Costco Wholesale currently has a consensus rating of “Moderate Buy” and an average target price of $1,046.27.

Costco Wholesale Price Performance

Shares of COST opened at $910.34 on Monday. The business has a 50-day moving average of $933.27 and a 200-day moving average of $965.95. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. The company has a market capitalization of $403.72 billion, a price-to-earnings ratio of 43.85, a price-to-earnings-growth ratio of 3.95 and a beta of 0.86. Costco Wholesale has a 1 year low of $844.06 and a 1 year high of $1,096.50.

Costco Wholesale (NASDAQ:COST) last announced its earnings results on Thursday, September 24th. The retailer reported $6.75 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 analysts’ expectations of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%.The firm’s revenue was up 11.1% on a year-over-year basis. During the same period in the prior year, the business posted $5.87 earnings per share. As a group, equities research analysts anticipate that Costco Wholesale will post 22.86 earnings per share for the current 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 $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale’s payout ratio is 28.32%.

Insiders Place Their Bets

In other news, EVP Claudine Adamo sold 2,200 shares of the company’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the transaction, the executive vice president owned 7,134 shares in the company, valued at approximately $6,534,244.62. This represents a 23.57% 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. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Costco Wholesale

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in COST. C M Bidwell & Associates Ltd. acquired a new position in shares of Costco Wholesale during the second quarter worth approximately $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of Costco Wholesale in the 4th quarter worth $27,000. Burk Holdings LLC acquired a new stake in Costco Wholesale in the 2nd quarter valued at $30,000. Manning & Napier Advisors LLC acquired a new stake in Costco Wholesale in the 2nd quarter valued at $30,000. Finally, Lifetime Wealth Management P.C. acquired a new stake in Costco Wholesale in the 4th quarter valued at $28,000. 68.48% of the stock is owned by institutional investors.

Key Costco Wholesale News

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

• Positive Sentiment: Costco delivered a strong fiscal fourth quarter, with revenue rising 11.1% year over year to $95.72 billion and earnings of $6.75 per share, exceeding Wall Street expectations. Comparable sales increased 9.4% overall and 10.7% in the U.S., supported by higher customer traffic and larger baskets. Costco’s Sales Momentum Builds as Q4 Traffic and Ticket Rise
• Positive Sentiment: Membership revenue increased approximately 11% to $5.907 billion, while executive-member penetration reached a record level. The recurring fee stream, strong renewal trends, digital growth and expansion of warehouse locations continue to support Costco’s long-term investment case. Costco Collects More Membership Fees
• Positive Sentiment: Management highlighted continued momentum in fresh food, gas, pharmacy, travel and e-commerce. New or converted Business Center locations, including projects in Haltom City and Kansas City, should broaden Costco’s commercial-customer base and add jobs over time. Costco Continues to Gain Momentum in Fresh Food
• Neutral Sentiment: Analysts and financial commentators remain divided: Costco’s earnings consistency and renewal rates are viewed as exceptional, but the stock’s elevated valuation leaves limited room for execution mistakes. Daiwa Securities lowered its price target to $950 from $975 while retaining a Neutral rating. Daiwa Securities Adjusts Price Target
• Negative Sentiment: Executive Vice President Claudine Adamo sold 2,200 shares for approximately $2.02 million, reducing her direct holdings by 23.57%. The filing does not establish a change in Costco’s fundamentals, but insider selling can weigh on sentiment, particularly while the shares trade at a high earnings multiple.

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.