Costco Wholesale (NASDAQ:COST) Coverage Initiated at Bank of America

Stock analysts at Bank of America began coverage on shares of Costco Wholesale (NASDAQ:COST) in a report released on Friday, Marketbeat reports. The brokerage set a “buy” rating and a $1,185.00 price target on the retailer’s stock. Bank of America‘s price objective would suggest a potential upside of 17.24% from the stock’s previous close.

Several other equities analysts have also recently weighed in on COST. Sanford C. Bernstein restated an “outperform” rating and set a $1,155.00 price objective on shares of Costco Wholesale in a research note on Monday, February 9th. DA Davidson reiterated a “neutral” rating and issued a $1,000.00 target price on shares of Costco Wholesale in a report on Thursday, February 5th. The Goldman Sachs Group dropped their price target on shares of Costco Wholesale from $1,218.00 to $1,171.00 and set a “buy” rating on the stock in a research report on Friday, December 12th. Robert W. Baird set a $1,100.00 price target on shares of Costco Wholesale in a report on Thursday, February 5th. Finally, Mizuho upped their price objective on shares of Costco Wholesale from $1,000.00 to $1,065.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 3rd. Twenty-two analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $1,014.39.

Costco Wholesale Price Performance

COST stock opened at $1,010.79 on Friday. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.53 and a current ratio of 1.04. The business has a 50-day simple moving average of $948.16 and a two-hundred day simple moving average of $934.96. The company has a market capitalization of $448.66 billion, a P/E ratio of 54.14, a price-to-earnings-growth ratio of 5.32 and a beta of 1.01. Costco Wholesale has a 52-week low of $844.06 and a 52-week high of $1,067.08.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings data on Thursday, December 11th. The retailer reported $4.34 EPS for the quarter, topping the consensus estimate of $4.27 by $0.07. The firm had revenue of $67.31 billion during the quarter, compared to the consensus estimate of $67.03 billion. Costco Wholesale had a return on equity of 29.35% and a net margin of 2.96%.The company’s quarterly revenue was up 8.3% compared to the same quarter last year. During the same period in the prior year, the business posted $4.04 earnings per share. Research analysts expect that Costco Wholesale will post 18.03 EPS for the current fiscal year.

Insider Buying and Selling

In other Costco Wholesale news, Director Susan L. Decker sold 458 shares of the business’s stock in a transaction on Friday, January 16th. The stock was sold at an average price of $955.00, for a total value of $437,390.00. Following the sale, the director directly owned 8,532 shares in the company, valued at $8,148,060. The trade was a 5.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Javier Polit sold 558 shares of the company’s stock in a transaction on Tuesday, December 30th. The shares were sold at an average price of $862.89, for a total value of $481,492.62. Following the transaction, the executive vice president directly owned 10,190 shares in the company, valued at $8,792,849.10. This represents a 5.19% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 6,915 shares of company stock worth $6,317,097 in the last three months. Insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Arwa LLC purchased a new stake in shares of Costco Wholesale during the 4th quarter valued at approximately $1,518,000. Instrumental Wealth LLC bought a new stake in Costco Wholesale during the 4th quarter valued at $188,000. Groupama Asset Managment lifted its position in shares of Costco Wholesale by 17.3% during the fourth quarter. Groupama Asset Managment now owns 17,567 shares of the retailer’s stock worth $15,145,000 after acquiring an additional 2,593 shares in the last quarter. Oak Grove Capital LLC lifted its position in shares of Costco Wholesale by 1.0% during the fourth quarter. Oak Grove Capital LLC now owns 19,398 shares of the retailer’s stock worth $16,728,000 after acquiring an additional 200 shares in the last quarter. Finally, Anchor Investment Management LLC boosted its holdings in shares of Costco Wholesale by 2.3% in the fourth quarter. Anchor Investment Management LLC now owns 8,475 shares of the retailer’s stock worth $7,309,000 after acquiring an additional 188 shares during the period. 68.48% of the stock is currently owned by institutional investors.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Bank of America initiated coverage with a “Buy” and a $1,185 price target, signaling material upside from current levels and lending institutional momentum to the name.
• Positive Sentiment: Analysts highlighted Costco’s resilience in a K-shaped economy — pricing power, loyal executive members and margin durability — supporting the stock’s defensive growth narrative. What’s Going On With Costco Wholesale Stock Today?
• Positive Sentiment: Seeking Alpha published a long-term bullish piece framing Costco’s business model as attractive for buy-and-hold investors, reinforcing the stock’s appeal for portfolio allocation. Costco: A Strong Business Model For Long-Term Investors
• Positive Sentiment: Merchandising and pricing moves — Costco added more national brands and cut prices on select items — which can boost traffic and member perceived value, supporting same-store fundamentals. Costco adds more big brands and lowers prices
• Neutral Sentiment: Costco heads into Q2 with consensus expectations for revenue growth (~+8.6%) and EPS (~+12.7%), which supports the bull case but raises the bar — strong results could be priced in given recent analyst optimism. Should You Buy Costco Stock Ahead of Q2 Earnings Report?
• Neutral Sentiment: Costco is pursuing tariff refund lawsuits (post-Supreme Court rulings) while investing in digital tools and global expansion — potential upside from refunds but also short-term cash/legal uncertainty and capex. How Investors May Respond To Costco Wholesale (COST) Tariff Refund Lawsuits And Digital Expansion Investments
• Negative Sentiment: Operational hiccup: Costco notified Hawaii members of a Yakitori fried rice recall — a localized food-safety issue that could produce modest short-term negative PR and costs. Costco notifies Hawaii members of Yakitori fried rice recall

Costco Wholesale Company Profile

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.