Commonwealth Equity Services LLC Sells 15,328 Shares of Costco Wholesale Corporation $COST

Key Points

• Commonwealth Equity Services cut its Costco stake by 4.5%, selling 15,328 shares in the third quarter; it still held 326,263 shares valued at about $297 million.
• Analyst sentiment was broadly positive: Costco had a consensus “Moderate Buy” rating and an average price target of $1,090.55, though some analysts cited valuation concerns.
• Costco beat quarterly earnings and revenue estimates, with revenue up 11.1% year over year; October net sales increased 12.6% to $24.50 billion.

Commonwealth Equity Services LLC lowered its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 4.5% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 326,263 shares of the retailer's stock after selling 15,328 shares during the quarter. Commonwealth Equity Services LLC owned about 0.07% of Costco Wholesale worth $297,010,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. First National Bank of Hutchinson grew its holdings in shares of Costco Wholesale by 0.9% during the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock valued at $1,094,000 after buying an additional 10 shares during the last quarter. Frisch Financial Group Inc. increased its holdings in shares of Costco Wholesale by 1.0% in the first quarter. Frisch Financial Group Inc. now owns 1,049 shares of the retailer's stock valued at $1,045,000 after purchasing an additional 10 shares during the period. Main Street Group LTD increased its holdings in shares of Costco Wholesale by 0.8% in the first quarter. Main Street Group LTD now owns 1,226 shares of the retailer's stock valued at $1,221,000 after purchasing an additional 10 shares during the period. HORAN Wealth LLC increased its holdings in shares of Costco Wholesale by 1.3% in the first quarter. HORAN Wealth LLC now owns 803 shares of the retailer's stock valued at $769,000 after purchasing an additional 10 shares during the period. Finally, SHUTTLEWORTH & Co raised its stake in shares of Costco Wholesale by 0.4% in the first quarter. SHUTTLEWORTH & Co now owns 2,442 shares of the retailer's stock worth $2,433,000 after purchasing an additional 10 shares during the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on COST shares. Deutsche Bank Aktiengesellschaft decreased their target price on Costco Wholesale from $1,091.00 to $1,079.00 and set a "buy" rating for the company in a report on Monday, September 28th. Tigress Financial increased their price target on shares of Costco Wholesale from $1,065.00 to $1,250.00 and gave the stock a "buy" rating in a report on Thursday, October 15th. Sanford C. Bernstein reduced their price target on shares of Costco Wholesale from $1,144.00 to $1,143.00 and set an "outperform" rating for the company in a research report on Friday, September 25th. TD Cowen initiated coverage on shares of Costco Wholesale in a research note on Friday, October 30th. They set a "strong-buy" rating for the company. Finally, Weiss Ratings upgraded shares of Costco Wholesale from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, October 23rd. One analyst has rated the stock with a Strong Buy rating, twenty-four have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Costco Wholesale has an average rating of "Moderate Buy" and a consensus target price of $1,090.55.

Insider Activity at Costco Wholesale

In related news, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction on 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 sale, the executive vice president directly owned 7,134 shares of the company's stock, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the firm's stock in a transaction on 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 owned 3,094 shares in the company, valued at approximately $2,964,701.74. This represents a 26.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is owned by insiders.

Costco Wholesale Stock Performance

Shares of COST stock opened at $1,065.59 on Friday. The stock has a market cap of $472.19 billion, a PE ratio of 51.33, a price-to-earnings-growth ratio of 4.47 and a beta of 0.85. The business has a 50-day simple moving average of $950.04 and a 200-day simple moving average of $972.05. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50.

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

Costco Wholesale Announces Dividend

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

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: JPMorgan raised its price target to $1,150 from $1,015 and maintained an Overweight rating, citing potential upside from the current level. JPMorgan analyst recommendations
• Positive Sentiment: October net sales increased 12.6% year over year to $24.50 billion. U.S. comparable sales also rose 12.6%; Bank of America noted that U.S. comps were up 8.1% after adjusting for gasoline price changes and maintained its Buy rating. The strong sales momentum is a key near-term catalyst. Costco October sales results Bank of America rating and U.S. comparable sales
• Negative Sentiment: Valuation concerns persist after Costco’s rally: some commentary argues the stock’s elevated earnings multiple leaves limited room for disappointment. Citi maintained a Hold rating and $1,020 price target, below the recently quoted share price. Citi rating and price target Costco valuation discussion

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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