Costco Earns ‘Moderate Buy’ Rating from 33 Analysts, $992 Target
33 research firms rate Costco at “Moderate Buy” (19 buy, 13 hold, one sell), with an average 12-month price target of $992.08. In Q3 the retailer reported $4.34 EPS, beating estimates by $0.07 on $67.31B revenue versus $67.03B, an 8.3% year-on-year gain.
1. Strong Broker Consensus
Costco Wholesale has attracted coverage from 33 research firms, resulting in an average recommendation of Moderate Buy. Of these analysts, 19 recommend buying the stock, 13 rate it as a hold and one advises selling. The one-year average price target across all brokerages stands at 992.08, reflecting generally positive sentiment toward the company’s long-term growth trajectory.
2. Analyst Target Adjustments Reflect Caution
In recent months, several major brokerages have trimmed their targets on Costco, signaling tempered expectations in the near term. Robert W. Baird lowered its objective from 1,125 to 1,000 while maintaining an Outperform rating, and Wells Fargo reduced its target from 1,000 to 900 with an Equal Weight grade. Evercore ISI cut its forecast from 1,060 to 1,025 but kept an Outperform endorsement. Despite these downward adjustments, Telsey Advisory Group reaffirmed its Outperform view and maintained its target at 1,100, underlining continued confidence in Costco’s membership-fee-driven model.
3. Notable Insider Stock Sales
Over the past quarter, Costco executives have reduced their holdings, collectively selling 8,946 shares valued at approximately 8.18 million. EVP Claudine Adamo disposed of 2,700 shares for roughly 2.53 million, decreasing her stake by 28.3% to 6,851 shares. Similarly, senior executive Tiffany Marie Barbre sold 1,239 shares for about 1.16 million, cutting her holding by 19.4% to 5,155 shares. Insiders now own just 0.10% of total shares outstanding.
4. Institutional Investors Deepen Stakes
Major asset managers have continued to build positions in Costco. Vanguard increased its stake by 1.7% in the second quarter, adding 711,560 shares to hold over 43.3 million. State Street added 90,107 shares for a 0.5% boost to its 18.3 million-share position, while Geode Capital lifted its stake by 1.5% to 10.3 million shares. Notably, Norges Bank initiated a new position worth approximately 5.69 billion, and Invesco grew its holdings by 9.8%, acquiring 383,887 more shares. Institutional ownership now accounts for 68.5% of the company’s shares.