3,080 Costco Wholesale Corporation $COST Shares Purchased by Werlinich Asset Management LLC

Key Points

• Werlinich Asset Management increased its Costco stake by 85% in the third quarter, purchasing 3,080 shares and bringing its holdings to 6,704 shares worth approximately $6.1 million.
• Costco reported strong momentum, with September net sales rising 13% year over year to $30.02 billion and comparable sales increasing 11.4%; its latest quarterly earnings also exceeded analyst expectations.
• Despite solid operating performance and a “Moderate Buy” consensus rating, investors face concerns over Costco’s premium valuation, margin risks, gasoline-driven sales growth and mixed analyst views.

Werlinich Asset Management LLC increased its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 85.0% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 6,704 shares of the retailer's stock after acquiring an additional 3,080 shares during the period. Costco Wholesale makes up approximately 2.4% of Werlinich Asset Management LLC's investment portfolio, making the stock its 11th biggest position. Werlinich Asset Management LLC's holdings in Costco Wholesale were worth $6,103,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in the stock. Bank of America Corp DE bought a new stake in shares of Costco Wholesale in the 2nd quarter valued at approximately $6,781,946,000. Diamant Asset Management Inc. increased its position in shares of Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after purchasing an additional 6,720,130 shares during the last quarter. State Street Corp increased its position in shares of Costco Wholesale by 31.7% during the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock valued at $22,359,224,000 after purchasing an additional 5,749,362 shares during the last quarter. Corient Private Wealth LLC raised its holdings in Costco Wholesale by 838.9% during the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock valued at $5,282,182,000 after buying an additional 5,472,968 shares during the period. Finally, Legal & General Group Plc purchased a new stake in Costco Wholesale during the 2nd quarter valued at $2,362,188,000. 68.48% of the stock is owned by institutional investors.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco reported September net sales of $30.02 billion, up 13% year over year. Total comparable sales increased 11.4%, while sales excluding gasoline and foreign-exchange effects rose 7.6%. Strong traffic, transactions and 19% digital growth point to continued operating momentum. Costco September Sales Results
• Positive Sentiment: UBS and Jefferies viewed the September performance as evidence of an accelerating start to fiscal 2027. The results reinforce Costco’s reputation for resilient customer traffic and could support earnings estimates. Costco September Sales Point to Accelerating Trends
• Neutral Sentiment: Royal Bank of Canada reaffirmed its Sector Perform rating and set a $1,000 price target, implying moderate upside but no strong change in its investment view. RBC Costco Rating
• Neutral Sentiment: DA Davidson maintained a Hold rating following a warehouse-club tour, suggesting Costco’s execution remains solid but that the current valuation already reflects much of the company’s strengths. DA Davidson Costco Warehouse Tour
• Negative Sentiment: Analysts cautioned that part of September’s comparable-sales surge came from higher gasoline prices and other lower-margin factors. This raises questions about how much of the growth will translate into profit expansion. Costco Sales Rebound Analysis
• Negative Sentiment: Costco’s premium valuation, tariff and margin risks, and a reported lawsuit involving a Kirkland drink-mix “sugar-free” claim provide additional reasons investors may remain cautious.

Costco Wholesale Trading Down 0.2%

Costco Wholesale stock traded down $2.34 during mid-day trading on Friday, hitting $945.58. The company's stock had a trading volume of 661,223 shares, compared to its average volume of 2,188,253. The company has a 50 day moving average of $930.81 and a 200-day moving average of $963.49. The stock has a market cap of $419.35 billion, a PE ratio of 45.57, a P/E/G ratio of 4.03 and a beta of 0.88. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, topping the consensus estimate 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% compared to the same quarter last year. During the same period last year, the company earned $5.87 earnings per share. On average, research analysts anticipate that Costco Wholesale Corporation will post 22.86 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the completion of the sale, the executive vice president owned 7,134 shares in the company, valued at $6,534,244.62. This trade represents a 23.57% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.10% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several research firms have commented on COST. Evercore reaffirmed an "outperform" rating on shares of Costco Wholesale in a research note on Tuesday, September 22nd. Wells Fargo & Company reduced their target price on shares of Costco Wholesale from $1,000.00 to $950.00 and set an "equal weight" rating on the stock in a research note on Friday, September 25th. Citigroup began coverage on shares of Costco Wholesale in a report on Thursday, June 18th. They issued a "neutral" rating and a $1,020.00 target price for the company. Weiss Ratings cut shares of Costco Wholesale from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, September 2nd. Finally, Roth Capital reiterated a "sell" rating and set a $781.00 price target on shares of Costco Wholesale in a report on Friday, September 25th. Twenty-two research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $1,046.27.

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.

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