TD Cowen Increases Costco Price Target to $1,090.00

Costco Wholesale (NASDAQ:COST) has attracted attention as TD Cowen recently announced a revision of its price target for the retailer's stock. In a report published on Friday, TD Cowen raised its price objective from $975.00 to $1,090.00. This adjustment reflects the brokerage's optimistic stance on Costco's performance and comes with a "buy" rating.

The new price target suggests a potential increase of 9.05% from Costco's current stock price, indicating confidence in the company's future growth prospects.

Analyst Perspectives on Costco's Stock

Costco has gained further insights from various analysts in recent days. For instance, BMO Capital Markets also heightened its target price for Costco from $1,075.00 to $1,175.00 while maintaining an "outperform" rating. Furthermore, Evercore ISI improved its price target from $1,019.00 to $1,020.00, offering an "overweight" rating in the process.

In contrast, StockNews.com downgraded Costco's rating from "buy" to "hold" on September 27th. Meanwhile, Roth MKM revised its price target upwards from $755.00 to $907.00 while retaining a "neutral" stance. Additionally, UBS Group raised its price target from $840.00 to $1,040.00 and assigned a "buy" rating.

Overall, the broader sentiment around Costco's stock remains positive, with ten analysts giving it a hold rating and nineteen advocating for a buy. MarketBeat indicates a consensus rating of "Moderate Buy" and an average target price of $985.96 among analysts.

Recent Performance of Costco Shares

On the trading day following TD Cowen's announcement, Costco shares saw an uptick, rising $11.11 to reach $999.50. The trading volume was 1,598,678 shares, compared to the average volume of 1,923,378 shares. Costco's market capitalization stands at $442.85 billion, with a price-to-earnings ratio of 60.32. It has exhibited a price-to-earnings-growth ratio of 6.05, accompanied by a beta of 0.82.

The stock has witnessed a 12-month low of $630.30 and a high of $1,007.80. Current financial ratios reveal a current ratio of 0.97, a quick ratio of 0.44, and a debt-to-equity ratio of 0.25.

Costco's Quarterly Financial Results

Costco recently disclosed its quarterly earnings on September 26, revealing an EPS of $5.15. This surpasses analysts' expectations, which estimated EPS at $5.05 by $0.10. The company reported quarterly revenues of $79.70 billion, slightly below the consensus estimate of $79.91 billion. In comparison to the same quarter last year, revenue reflects a year-on-year increase of 1.0%.

Equity analysts predict an EPS forecast of 17.77 for the current year, further implying confidence in Costco's ongoing financial health.

Insider Transactions and Institutional Investments

In recent developments, some executives at Costco have made notable stock transactions. EVP Pierre Riel sold 2,000 shares on October 15 at an average price of $896.71. His remaining stock ownership now totals 10,210 shares. Another executive, Richard A. Galanti, sold 1,416 shares on October 24 at an average price of $894.68.

Insider selling has amounted to 11,016 shares valued at approximately $9,826,115 over the previous ninety days, representing about 0.18% ownership by corporate insiders.

On the institutional side, several hedge funds and investors have shifted their positions recently. Noteworthy changes include RPg Family Wealth Advisory LLC initiating a new position valued at $29,000 and Summit Securities Group LLC acquiring shares worth $50,000 during the second quarter.

A significant portion of Costco shares, around 68.48%, is owned by institutional investors, which highlights their faith in the company's stability and growth potential.

About Costco Wholesale

Costco Wholesale Corporation operates a network of membership-based warehouses across various countries, including the United States, Canada, Mexico, and many more. The company specializes in offering both branded and private-label products across a wide range of categories, ensuring customers receive quality and value.

Costco, TD Cowen, Stock