DA Davidson Has Pessimistic Outlook of COST FY2026 Earnings

Costco Wholesale Co. (NASDAQ:COST) – Equities research analysts at DA Davidson lowered their FY2026 earnings per share (EPS) estimates for shares of Costco Wholesale in a research note issued to investors on Thursday, January 9th. DA Davidson analyst M. Baker now expects that the retailer will earn $19.40 per share for the year, down from their previous forecast of $19.43. DA Davidson currently has a “Neutral” rating and a $900.00 target price on the stock. The consensus estimate for Costco Wholesale’s current full-year earnings is $17.83 per share.

A number of other research firms also recently weighed in on COST. Melius Research began coverage on shares of Costco Wholesale in a report on Monday, September 23rd. They issued a “hold” rating and a $950.00 target price on the stock. Oppenheimer reissued an “outperform” rating and set a $1,075.00 target price (up previously from $980.00) on shares of Costco Wholesale in a research report on Tuesday, December 10th. Raymond James upped their price target on shares of Costco Wholesale from $990.00 to $1,030.00 and gave the company an “overweight” rating in a report on Thursday, December 12th. UBS Group boosted their target price on Costco Wholesale from $840.00 to $1,040.00 and gave the company a “buy” rating in a research report on Thursday, December 12th. Finally, Loop Capital increased their price target on Costco Wholesale from $1,005.00 to $1,095.00 and gave the stock a “buy” rating in a report on Friday, December 13th. Nine research analysts have rated the stock with a hold rating and nineteen have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $1,013.59.

Costco Wholesale Price Performance

Costco Wholesale stock opened at $924.70 on Monday. Costco Wholesale has a 52-week low of $675.96 and a 52-week high of $1,008.25. The company has a quick ratio of 0.44, a current ratio of 0.97 and a debt-to-equity ratio of 0.25. The firm’s fifty day moving average is $948.69 and its 200 day moving average is $899.73. The company has a market cap of $410.47 billion, a price-to-earnings ratio of 54.30, a PEG ratio of 6.02 and a beta of 0.84.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Grandview Asset Management LLC increased its holdings in Costco Wholesale by 4.1% in the fourth quarter. Grandview Asset Management LLC now owns 2,845 shares of the retailer’s stock valued at $2,607,000 after buying an additional 112 shares in the last quarter. Dale Q Rice Investment Management Ltd purchased a new position in shares of Costco Wholesale in the 4th quarter valued at about $984,000. TPG Financial Advisors LLC boosted its position in Costco Wholesale by 46.0% during the fourth quarter. TPG Financial Advisors LLC now owns 435 shares of the retailer’s stock worth $399,000 after purchasing an additional 137 shares in the last quarter. Gunderson Capital Management Inc. grew its holdings in Costco Wholesale by 19.3% in the fourth quarter. Gunderson Capital Management Inc. now owns 519 shares of the retailer’s stock valued at $475,000 after purchasing an additional 84 shares during the period. Finally, Traveka Wealth LLC increased its position in shares of Costco Wholesale by 139.9% in the fourth quarter. Traveka Wealth LLC now owns 1,761 shares of the retailer’s stock valued at $1,614,000 after buying an additional 1,027 shares in the last quarter. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, EVP Richard A. Galanti sold 1,416 shares of the company’s stock in a transaction on Thursday, October 24th. The shares were sold at an average price of $894.68, for a total value of $1,266,866.88. Following the sale, the executive vice president now directly owns 27,400 shares of the company’s stock, valued at $24,514,232. This represents a 4.91 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.18% of the stock is currently owned by company insiders.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, November 15th. Shareholders of record on Friday, November 1st were paid a dividend of $1.16 per share. The ex-dividend date of this dividend was Friday, November 1st. This represents a $4.64 dividend on an annualized basis and a yield of 0.50%. Costco Wholesale’s payout ratio is 27.25%.

Costco Wholesale Company Profile

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.