2,084 Costco Wholesale Corporation $COST Shares Sold by Prime Capital Investment Advisors LLC

Key Points

• Prime Capital Investment Advisors reduced its Costco position by 4.7%, selling 2,084 shares and retaining 42,634 shares valued at approximately $38.8 million. Institutional investors collectively own 68.48% of Costco.
• Analysts remain broadly bullish, with 25 Buy, eight Hold and one Sell rating, producing a “Moderate Buy” consensus and an average price target of $1,086.19.
• Costco beat quarterly expectations with $6.75 EPS and $95.72 billion in revenue, while declaring a $1.47 quarterly dividend. However, its premium valuation—about 48 times earnings—creates potential downside risk if growth or execution disappoints.

Prime Capital Investment Advisors LLC decreased its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 4.7% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 42,634 shares of the retailer's stock after selling 2,084 shares during the period. Prime Capital Investment Advisors LLC's holdings in Costco Wholesale were worth $38,812,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in COST. State Street Corp increased its position in shares of Costco Wholesale by 31.7% during the second quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock valued at $22,359,224,000 after acquiring an additional 5,749,362 shares during the last quarter. Bank of America Corp DE lifted its holdings in Costco Wholesale by 11.5% during the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock worth $7,488,203,000 after acquiring an additional 773,651 shares during the period. Diamant Asset Management Inc. lifted its holdings in Costco Wholesale by 99,278.0% during the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock worth $672,690,000 after acquiring an additional 6,720,130 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Costco Wholesale by 5.5% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,068,312 shares of the retailer's stock worth $2,870,314,000 after purchasing an additional 160,893 shares during the last quarter. Finally, Amundi boosted its position in Costco Wholesale by 11.1% in the first quarter. Amundi now owns 2,839,016 shares of the retailer's stock worth $2,828,881,000 after purchasing an additional 283,360 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently issued reports on COST. Oppenheimer reaffirmed an "outperform" rating and set a $1,160.00 target price on shares of Costco Wholesale in a research report on Wednesday, September 16th. Deutsche Bank Aktiengesellschaft lowered their target price on Costco Wholesale from $1,091.00 to $1,079.00 and set a "buy" rating on the stock in a research note on Monday, September 28th. Mizuho cut their price target on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating on the stock in a report on Friday, September 25th. TD Cowen restated a "buy" rating on shares of Costco Wholesale in a research report on Friday, September 25th. Finally, Argus restated a "buy" rating and set a $1,230.00 price target on shares of Costco Wholesale in a research report on Monday, September 28th. Twenty-five equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $1,086.19.

Costco Wholesale Price Performance

Costco Wholesale stock opened at $998.31 on Thursday. The business's 50 day simple moving average is $935.99 and its 200 day simple moving average is $962.90. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The company has a market cap of $442.38 billion, a price-to-earnings ratio of 48.09, a PEG ratio of 4.25 and a beta of 0.88. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.54 by $0.21. The business had revenue of $95.72 billion during the quarter, compared to the consensus estimate of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The business's revenue for the quarter was up 11.1% on a year-over-year basis. During the same period last year, the business posted $5.87 earnings per share. Sell-side analysts forecast that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be paid a dividend of $1.47 per share. The ex-dividend date is Friday, October 30th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio is presently 28.32%.

More Costco Wholesale News

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

• Positive Sentiment: Value proposition strengthened by inflation: With consumer prices rising 3.7% year over year and gasoline prices up sharply, Costco’s low-margin, high-volume model and reported 14% markup cap could attract shoppers seeking lower prices. Inflation and Costco’s value model
• Positive Sentiment: Analyst support: CICC initiated coverage of Costco with an “Outperform” rating, adding a new bullish view on the company’s long-term prospects. CICC Costco coverage
• Positive Sentiment: Expansion and membership durability: Costco operates 292 of its 939 warehouses outside the U.S. and Puerto Rico, leaving room for overseas membership growth. Articles also highlight the company’s strong customer retention, a feature that supports recurring membership revenue. Costco overseas membership growth
• Positive Sentiment: Digital execution: Costco, Walmart and Target are benefiting from faster delivery, AI-enabled shopping and marketplace partnerships, supporting continued e-commerce growth. Retail digital sales growth
• Neutral Sentiment: ETF purchases and coverage describing Costco’s desserts, pumpkin pie, tote bags and planned South Meridian warehouse opening reinforce brand engagement and store expansion, but are unlikely to materially affect near-term earnings. ETF purchases of Costco
• Neutral Sentiment: Costco’s supplier controls and food-safety procedures may protect customer trust, though attention to food-safety risks highlights an ongoing operational issue for grocery retailers. Costco food-safety procedures
• Negative Sentiment: Valuation risk: Costco trades at the highest earnings multiple among six large retailers in one comparison, despite ranking only fifth in operating margin. That premium leaves less room for execution disappointments and may limit upside. Costco valuation versus rivals
• Negative Sentiment: Walmart’s aggressive holiday-sales ambitions and early Black Friday promotions reinforce competitive pressure, particularly around price and convenience. Walmart holiday competition

Insider Buying and Selling at Costco Wholesale

In related news, EVP Claudine Adamo sold 2,200 shares of the business's stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the sale, the executive vice president directly owned 7,134 shares in the company, valued at approximately $6,534,244.62. The trade was a 23.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the company's stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the sale, the executive vice president directly owned 3,094 shares in the company, valued at approximately $2,964,701.74. This trade represents a 26.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.10% of the stock is currently owned by corporate insiders.

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.

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