Costco Wholesale Corporation $COST Holdings Lowered by Rathbones Group PLC

Key Points

• Rathbones Group PLC trimmed its stake in Costco by 2.7% in Q3 to 268,789 shares (its 25th largest holding), even as other institutions like Vanguard and Silver Oak increased positions — institutional investors now own about 68.48% of the stock.
• Costco beat Q2 estimates with GAAP EPS of $4.58 versus $4.55 and revenue of $69.6B (up 9.2% YoY), driven by ~22.6% online sales growth and rising membership income, spurring several analyst price‑target increases and a consensus "Moderate Buy" target of $1,035.35.
• Market watchers flag valuation concerns—a P/E of 51.9 and PEG of 4.77—while the company pays a $1.30 quarterly dividend (annualized $5.20, 0.5% yield) and insiders have been net sellers (6,915 shares sold in the past 90 days).

Rathbones Group PLC decreased its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 2.7% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 268,789 shares of the retailer's stock after selling 7,341 shares during the quarter. Costco Wholesale accounts for about 1.0% of Rathbones Group PLC's investment portfolio, making the stock its 25th largest holding. Rathbones Group PLC owned 0.06% of Costco Wholesale worth $248,782,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds also recently bought and sold shares of the company. Silver Oak Securities Incorporated grew its position in Costco Wholesale by 49.3% during the third quarter. Silver Oak Securities Incorporated now owns 3,780 shares of the retailer's stock valued at $3,499,000 after purchasing an additional 1,248 shares in the last quarter. Permanent Capital Management LP purchased a new stake in Costco Wholesale in the 3rd quarter worth approximately $874,000. Wealthspire Advisors LLC boosted its stake in shares of Costco Wholesale by 2.0% during the 2nd quarter. Wealthspire Advisors LLC now owns 15,799 shares of the retailer's stock valued at $15,640,000 after buying an additional 312 shares during the period. Vanguard Group Inc. boosted its stake in shares of Costco Wholesale by 1.7% during the 2nd quarter. Vanguard Group Inc. now owns 43,356,271 shares of the retailer's stock valued at $42,920,107,000 after buying an additional 711,560 shares during the period. Finally, Exchange Traded Concepts LLC grew its holdings in shares of Costco Wholesale by 43.6% during the 3rd quarter. Exchange Traded Concepts LLC now owns 23,444 shares of the retailer's stock valued at $21,700,000 after acquiring an additional 7,116 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Costco Wholesale Stock Performance

COST opened at $998.10 on Friday. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.53 and a current ratio of 1.04. The company has a market cap of $443.03 billion, a PE ratio of 51.90, a price-to-earnings-growth ratio of 4.77 and a beta of 1.01. The stock has a 50-day moving average of $961.64 and a 200-day moving average of $935.74. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,067.08.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings data on Thursday, March 5th. The retailer reported $4.58 earnings per share for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. Costco Wholesale had a return on equity of 29.37% and a net margin of 2.99%.The business had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. During the same period last year, the business earned $4.02 EPS. The firm's revenue was up 9.2% compared to the same quarter last year. As a group, equities research analysts forecast that Costco Wholesale Corporation will post 18.03 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Friday, January 30th were given a $1.30 dividend. The ex-dividend date of this dividend was Friday, January 30th. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.5%. Costco Wholesale's dividend payout ratio (DPR) is currently 27.04%.

More Costco Wholesale News

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

• Positive Sentiment: Q2 double‑beat — Costco reported revenue of ~$69.6B and GAAP EPS of $4.58, with comp‑store strength and membership fee growth that underpin near‑term sales momentum. This is the main catalyst supporting the rally. Costco Wholesale beats quarterly comparable sales estimates
• Positive Sentiment: Analyst upgrades and higher price targets — several brokers (notably a large Street high by BMO cited in coverage) raised targets and reiterated outperform/overweight views, adding upward pressure. Costco Stock Scores New Street‑High Price Target
• Positive Sentiment: Capital returns & balance‑sheet strength — commentary and notes on buybacks, a rising cash pile and the “special dividend” thesis are attracting income/return‑focused investors and support further upside. Costco Wholesale: Buy Now, Get Paid Later as Cash and Returns Build
• Positive Sentiment: Digital and membership momentum — online sales growth (~22.6%) and rising membership income are cited on the call as durable drivers of mix and margins, supporting investor confidence. Costco Digital Innovations Fuel 22.6% Online Growth
• Neutral Sentiment: Mixed analyst moves — while many raised targets, a few (e.g., Goldman) trimmed targets even as they kept buy calls; that creates a mix of conviction levels among institutional holders. Goldman Sachs adjusts price target on Costco
• Neutral Sentiment: Muted market reaction — despite the beat, some headlines note a tepid price move (and some pre‑market weakness) as investors weigh valuation metrics versus growth. That can lead to intraday volatility. Costco Stock Exhibits Muted Reaction Amid Double‑Beat Earnings Report
• Negative Sentiment: Valuation concerns and “red flags” narrative — some outlets argue the stock is expensive (high P/E, PEG) and list risks that could cap upside; those narratives are pressuring more value‑sensitive investors. Is Costco Too Expensive? 3 Red Flags That Could Send Shares Sliding

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Robert W. Baird set a $1,100.00 price objective on Costco Wholesale in a report on Thursday, February 5th. JPMorgan Chase & Co. boosted their target price on Costco Wholesale from $1,050.00 to $1,060.00 and gave the company an "overweight" rating in a research note on Friday. Guggenheim reaffirmed a "neutral" rating on shares of Costco Wholesale in a research report on Monday, December 22nd. TD Cowen reaffirmed a "buy" rating on shares of Costco Wholesale in a research note on Friday. Finally, Rothschild & Co Redburn lifted their price target on Costco Wholesale from $890.00 to $1,000.00 and gave the company a "neutral" rating in a report on Tuesday, February 17th. Twenty-two equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $1,035.35.

Insider Buying and Selling

In related news, EVP Javier Polit sold 2,049 shares of the firm's stock in a transaction on Monday, December 29th. The shares were sold at an average price of $867.21, for a total value of $1,776,913.29. Following the transaction, the executive vice president directly owned 10,748 shares in the company, valued at approximately $9,320,773.08. This trade represents a 16.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Teresa A. Jones sold 850 shares of Costco Wholesale stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $986.26, for a total transaction of $838,321.00. Following the completion of the transaction, the executive vice president owned 4,228 shares in the company, valued at $4,169,907.28. This trade represents a 16.74% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 6,915 shares of company stock valued at $6,317,097. 0.10% of the stock is owned by corporate insiders.

Costco Wholesale Profile

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company's product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco's business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

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