Costco Wholesale Corporation $COST Shares Acquired by Sax Wealth Advisors LLC

Key Points

• Sax Wealth Advisors increased its Costco stake by 42% in the third quarter, owning 4,377 shares valued at approximately $3.99 million. Institutional investors collectively hold 68.48% of Costco’s outstanding stock.
• Costco reported strong quarterly results, with EPS of $6.75 versus the $6.54 consensus estimate and revenue of $95.72 billion, up 11.1% year over year. September net sales also rose 13%, while digital sales increased 19%.
• Despite a generally positive analyst outlook—23 Buy ratings and a $1,046.27 average price target—Costco trades at a premium valuation near 46 times earnings. An executive also sold 2,200 shares, and the stock’s low dividend yield may make it less attractive to income-focused investors.

Sax Wealth Advisors LLC boosted its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 42.0% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 4,377 shares of the retailer's stock after acquiring an additional 1,294 shares during the period. Sax Wealth Advisors LLC's holdings in Costco Wholesale were worth $3,985,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. C M Bidwell & Associates Ltd. purchased a new stake in shares of Costco Wholesale during the 2nd quarter worth approximately $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale in the fourth quarter valued at approximately $27,000. Burk Holdings LLC purchased a new position in Costco Wholesale in the second quarter valued at approximately $30,000. Manning & Napier Advisors LLC purchased a new position in Costco Wholesale in the second quarter valued at approximately $30,000. Finally, Lifetime Wealth Management P.C. bought a new position in Costco Wholesale during the fourth quarter valued at $28,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the business's 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 owned 7,134 shares of the company's stock, valued at $6,534,244.62. The trade was a 23.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale News Summary

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

• Positive Sentiment: Strong sales momentum: Costco reported September net sales of approximately $30.02 billion, up 13% year over year. Digital sales increased 19%, supported by expanded delivery options and personalization, indicating continued customer engagement beyond physical warehouses. Costco Wholesale Posts 13% September Sales Growth
• Positive Sentiment: Balance-sheet strength: Costco’s reported $21.3 billion liquidity cushion, manageable debt and robust cash generation give it flexibility to expand its warehouse network and invest in e-commerce. This provides an advantage over more financially constrained retail competitors. How Costco's Balance Sheet Gives It an Edge
• Positive Sentiment: Constructive earnings outlook: Erste Group raised its FY2027 EPS forecast to $22.80 from $22.67 and projects FY2028 EPS of $25.01, reinforcing expectations for continued earnings growth. Costco analyst earnings estimates
• Neutral Sentiment: Competitive and consumer considerations: Costco continues to outperform or pressure traditional grocery rivals such as Albertsons, while its bulk-pack format and $65 membership fee may not be equally attractive for every household. A potential West Oakland warehouse could support employment and local growth but is not an immediate earnings catalyst.
• Negative Sentiment: Premium valuation and income competition: COST trades at roughly 46 times earnings, well above the broader market. The 10-year Treasury yield near 5.2% significantly exceeds Costco’s dividend yield, which can reduce the stock’s appeal to income-focused investors and increase valuation pressure. Costco Stock Versus 10-Year Treasury Notes
• Negative Sentiment: Questions about sales quality: Higher gasoline prices contributed to reported sales growth at Costco’s fuel business. If gas prices decline, some of that revenue boost could fade, making the premium valuation harder to justify despite solid underlying membership and digital trends. What Cheaper Gas Would Mean for Costco Sales and Margins

Costco Wholesale Stock Performance

NASDAQ COST opened at $954.63 on Wednesday. The company's 50 day moving average is $930.95 and its 200-day moving average is $963.12. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. The firm has a market cap of $423.03 billion, a P/E ratio of 45.98, a price-to-earnings-growth ratio of 4.07 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating analysts' consensus estimates of $6.54 by $0.21. The company had revenue of $95.72 billion for the quarter, compared to analysts' expectations of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. Costco Wholesale's revenue was up 11.1% compared to the same quarter last year. During the same period in the prior year, the company posted $5.87 EPS. Sell-side analysts predict that Costco Wholesale Corporation will post 22.85 earnings per share for the current year.

Analyst Ratings Changes

COST has been the subject of a number of recent research reports. Royal Bank Of Canada reissued 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. Deutsche Bank Aktiengesellschaft lowered their target price on Costco Wholesale from $1,091.00 to $1,079.00 and set a "buy" rating on the stock in a research note on Monday, September 28th. DA Davidson upped their price target on Costco Wholesale from $1,000.00 to $1,040.00 and gave the company a "neutral" rating in a research report on Friday, September 25th. Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a research note on Monday, September 28th. Finally, Truist Financial cut their price target on Costco Wholesale from $1,011.00 to $955.00 and set a "hold" rating for the company in a research note on Friday, September 25th. Twenty-three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $1,046.27.

Costco Wholesale Profile

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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