Costco Wholesale Corporation $COST Holdings Raised by Oppenheimer & Co. Inc.

Key Points

• Institutional ownership increased: Oppenheimer raised its Costco position by 1.3% to 95,122 shares valued at approximately $86.6 million. Overall, hedge funds and other institutional investors own 68.48% of the company.
• Analysts remain broadly bullish: Costco has a “Moderate Buy” consensus rating, with 25 Buy, eight Hold and one Sell recommendation, and an average price target of $1,086.19.
• Strong results support the outlook, but valuation is elevated: Costco exceeded quarterly earnings and revenue estimates, with revenue up 11.1% year over year, while shares traded near $992 at a P/E ratio of 47.79. The company also declared a $1.47 quarterly dividend, equivalent to a 0.6% yield.

Oppenheimer & Co. Inc. grew its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1.3% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 95,122 shares of the retailer's stock after purchasing an additional 1,243 shares during the period. Costco Wholesale accounts for about 0.9% of Oppenheimer & Co. Inc.'s investment portfolio, making the stock its 14th largest position. Oppenheimer & Co. Inc.'s holdings in Costco Wholesale were worth $86,593,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in COST. Sarasin & Partners LLP boosted its holdings in Costco Wholesale by 6.9% in the second quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer's stock worth $200,372,000 after purchasing an additional 13,795 shares during the period. Silvant Capital Management LLC acquired a new stake in shares of Costco Wholesale in the second quarter valued at approximately $16,013,000. Nissay Asset Management Corp Japan raised its stake in Costco Wholesale by 4.1% during the 2nd quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer's stock valued at $148,193,000 after acquiring an additional 6,200 shares in the last quarter. Hyperion Asset Management Ltd raised its stake in shares of Costco Wholesale by 9.0% during the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer's stock valued at $64,325,000 after purchasing an additional 5,656 shares in the last quarter. Finally, Concurrent Investment Advisors LLC increased its stake in Costco Wholesale by 15.0% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 22,766 shares of the retailer's stock valued at $21,297,000 after buying an additional 2,974 shares during the period. Hedge funds and other institutional investors own 68.48% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have commented on COST shares. JPMorgan Chase & Co. dropped their price target on shares of Costco Wholesale from $1,100.00 to $1,015.00 and set an "overweight" rating on the stock in a research report on Friday, September 25th. Oppenheimer reiterated an "outperform" rating and issued a $1,160.00 price objective on shares of Costco Wholesale in a report on Wednesday, September 16th. CICC Research started coverage on shares of Costco Wholesale in a research note on Wednesday, October 21st. They set an "outperform" rating and a $1,050.00 price objective on the stock. Guggenheim reissued a "neutral" rating on shares of Costco Wholesale in a report on Monday, September 28th. Finally, Royal Bank Of Canada restated a "sector perform" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a research report on Friday, October 9th. Twenty-five equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $1,086.19.

Costco Wholesale Stock Down 1.3%

NASDAQ:COST opened at $992.13 on Wednesday. The business's 50-day moving average price is $940.52 and its 200 day moving average price is $969.21. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The firm has a market cap of $439.64 billion, a P/E ratio of 47.79 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating analysts' consensus estimates of $6.54 by $0.21. The business had revenue of $95.72 billion during the quarter, compared to analyst estimates of $94.97 billion. During the same period in the previous year, the company posted $5.87 earnings per share. Costco Wholesale's revenue was up 11.1% compared to the same quarter last year. Sell-side analysts expect that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be paid a $1.47 dividend. 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 currently 28.32%.

More Costco Wholesale News

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

• Positive Sentiment: Digital and pharmacy growth offer upside. Costco’s AI-driven search traffic and related online sales are reportedly growing at triple-digit rates, while pharmacy sales have increased nearly 20%. Expanded services, including GLP-1 and fertility offerings, could strengthen member engagement and renewal rates. Costco's AI Search Traffic Soars
• Positive Sentiment: New partnerships may improve member value. NationsBenefits is making healthcare benefits redeemable at more than 600 participating Costco warehouses, potentially increasing traffic and spending among eligible members. NationsBenefits Expands Member Access
• Positive Sentiment: Technical momentum is improving. Market technician Katie Stockton said Costco’s momentum is strengthening heading into November, reinforcing the bullish view following recent gains and the company’s fifth consecutive earnings beat. Costco momentum is improving
• Positive Sentiment: Dividend and special-dividend potential provide shareholder support. Costco’s upcoming $1.47 dividend and speculation about a possible special dividend may attract income-oriented investors, although the regular yield remains modest at the current share price. Costco Special Dividend Prospects
• Neutral Sentiment: ETF activity was a modest technical headwind. ETFs were reported as net sellers of COST on October 23, which could add short-term supply but does not materially change Costco’s operating outlook. ETFs Are Net Sellers of Costco
• Negative Sentiment: Valuation is the central concern. With COST trading at roughly 48 times earnings and near record levels, analysts warn that expectations are extremely high. Mixed consumer and macroeconomic conditions mean even a modest slowdown or weaker guidance could pressure the stock. Costco Remains a Defensive Compounder
• Negative Sentiment: A proposed warehouse cancellation removes a potential expansion catalyst. Costco withdrew its application for a warehouse near Highway 55 in Eagle, although the impact is likely limited unless the decision signals broader permitting or expansion challenges. Costco pulls application for warehouse near Highway 55

Insider Buying and Selling

In related news, EVP Claudine Adamo sold 2,200 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the executive vice president directly owned 7,134 shares in the company, valued at approximately $6,534,244.62. This trade 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 the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of Costco Wholesale stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the transaction, the executive vice president owned 3,094 shares in the company, valued at approximately $2,964,701.74. This trade 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 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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