Costco Wholesale Corporation $COST Holdings Increased by Orange Investment Advisors Inc.

Key Points

• Institutional interest increased: Orange Investment Advisors raised its Costco position by 250.9% in the third quarter to 3,242 shares valued at approximately $2.95 million. Institutional investors collectively own 68.48% of Costco’s stock.
• Costco delivered strong results: Quarterly EPS came in at $6.75, above the $6.54 consensus, while revenue rose 11.1% year over year to $95.72 billion. The company also declared a quarterly dividend of $1.47 per share, or $5.88 annualized.
• Analyst sentiment is positive but valuation is elevated: Costco has a “Moderate Buy” consensus rating and an average price target of $1,086.19, though the stock trades at a P/E of 48.33. Insider selling and intensifying competition from Kroger remain potential concerns.

Orange Investment Advisors Inc. boosted its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 250.9% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 3,242 shares of the retailer's stock after purchasing an additional 2,318 shares during the quarter. Orange Investment Advisors Inc.'s holdings in Costco Wholesale were worth $2,951,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. State Street Corp grew its holdings 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 worth $22,359,224,000 after buying an additional 5,749,362 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of 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 buying an additional 773,651 shares in the last quarter. Diamant Asset Management Inc. raised its position in shares of Costco Wholesale by 99,278.0% in the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after buying an additional 6,720,130 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of 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 valued at $2,870,314,000 after buying an additional 160,893 shares during the last quarter. Finally, Amundi raised its position in shares of Costco Wholesale by 11.1% in the first quarter. Amundi now owns 2,839,016 shares of the retailer's stock valued at $2,828,881,000 after buying an additional 283,360 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale News Summary

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

• Positive Sentiment: Analyst support remains strong. CICC initiated coverage with an Outperform rating, while Tigress Financial raised its price target to $1,250. Erste Group also increased its FY2028 EPS estimate to $25.07 from $25.01, above the current-year consensus estimate of $22.70. CICC coverage article Tigress Financial price target article
• Positive Sentiment: Growth and customer engagement remain key positives. Costco’s membership model has delivered substantial long-term shareholder returns, and the company is reportedly using purchasing data to better target high-spending members. REJURAN Cosmetics is also expanding through Costco’s first Beauty Table program, potentially adding traffic and broadening its premium beauty offering. Costco customer spending article REJURAN retail expansion article
• Neutral Sentiment: Long-term growth screens are favorable, and analysts’ average recommendation is equivalent to a Buy. However, these reports largely reiterate existing optimism rather than provide a new earnings catalyst. Zacks growth stock article
• Negative Sentiment: Valuation and competition remain concerns. Costco trades at a high earnings multiple, leaving the stock sensitive to profit-taking or disappointing growth. Kroger is planning major investments and price cuts to win back market share from Costco and Walmart, which could intensify grocery competition and pressure margins. Kroger competition article

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, EVP William Richard Wilcox sold 1,100 shares of Costco Wholesale 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 transaction, the executive vice president directly owned 3,094 shares of the company's stock, valued at $2,964,701.74. The trade was a 26.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the transaction, the executive vice president directly owned 7,134 shares in the company, valued at $6,534,244.62. This trade represents a 23.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale Stock Performance

NASDAQ COST opened at $1,003.32 on Monday. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. The stock's fifty day moving average is $937.96 and its two-hundred day moving average is $962.82. The firm has a market capitalization of $444.60 billion, a P/E ratio of 48.33, a price-to-earnings-growth ratio of 4.29 and a beta of 0.88. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued 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. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The business had revenue of $95.72 billion during the quarter, compared to the consensus estimate of $94.97 billion. During the same period last year, the company earned $5.87 EPS. The company's revenue for the quarter was up 11.1% on a year-over-year basis. On average, research analysts anticipate that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Costco Wholesale Announces Dividend

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 given a dividend of $1.47 per share. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's payout ratio is presently 28.32%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on COST. BTIG Research reissued a "buy" rating and issued a $1,125.00 price target on shares of Costco Wholesale in a research note on Wednesday, September 23rd. Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a research report on Monday, September 28th. Mizuho dropped their price objective on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating for the company in a research note on Friday, September 25th. Roth Capital reiterated a "sell" rating and issued a $781.00 price objective on shares of Costco Wholesale in a report on Friday, September 25th. Finally, Weiss Ratings upgraded shares of Costco Wholesale from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday. Twenty-five analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Costco Wholesale currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,086.19.

Costco Wholesale Company Profile

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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