Costco Received its Third Buy in a Row

By Carrie Williams

After Cowen & Co. and Robert W. Baird assigned a Buy rating to Costco in the last month, the company received another Buy, this time from BMO Capital. Analyst Kelly Bania reiterated a Buy rating on Costco (NASDAQ: COST) today and set a price target of $180. The company’s shares opened today at $146.70.

According to, Bania is a 1-star analyst with an average return of -2.0% and a 39.0% success rate. Bania covers the Services sector, focusing on stocks such as Performance Food Group, The Chefs’ Warehouse, and United Natural Foods.

Currently, the analyst consensus on Costco is Strong Buy and the average price target is $172.13, representing a 17.3% upside.

In a report issued on October 19, Northcoast Research also upgraded the stock to Buy.

Based on Costco’s latest earnings report from February 29, the company posted quarterly revenue of $28.17B and quarterly net profit of $546M. In comparison, last year the company earned revenue of $35.78B and had a net profit of $767M.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. Last month, David Petterson, an Insider at COST sold 3,000 shares for a total of $453,270.

Costco Wholesale Corp. operates membership warehouses based on the concept that offering members low prices on a limited selection of nationally branded and select private-label products in a wide range of merchandise categories. It operates warehouses in the U.S., Canada, the United Kingdom, Japan and Australia and through majority-owned subsidiaries in Taiwan and Korea. The company warehouses present exclusive product category selections to be found under a single roof, which include appliances, auto and tires, baby, kids and toys, clothing and handbags, computers and printers, electronics, food and gift baskets, funeral, furniture, gift cards, tickets & floral, hardware health & beauty, home & decor, jewelry & watches, office products, patio, outdoor & pets, sports & fitness, travel & luggage. It also provides ancillary and other services that include gas stations, pharmacy, food court, optical, one-hour photo, hearing aid and travel. Costco Wholesale was founded by James D. Sinegal and Jeffrey H. Brotman in 1983 and is headquartered in Issaquah, WA.