Costco Wholesale Corporation $COST Shares Newly Purchased by Reliant Investment Management LLC

Key Points

• Reliant Investment Management purchased 26,410 Costco shares worth approximately $24 million, making Costco its largest portfolio holding at 8.2%. Institutional investors collectively own 68.48% of the stock.
• Costco exceeded quarterly expectations with $6.75 in EPS and $95.72 billion in revenue, up 11.1% year over year. The company also declared a $1.47 quarterly dividend, equivalent to a 0.6% annualized yield.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $1,081.79, although Costco’s elevated valuation and recent insider selling remain potential concerns.

Reliant Investment Management LLC bought a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 26,410 shares of the retailer's stock, valued at approximately $24,042,000. Costco Wholesale comprises approximately 8.2% of Reliant Investment Management LLC's investment portfolio, making the stock its biggest position.

Several other large investors have also recently bought and sold shares of the company. Wealth Effects LLC grew its holdings in shares of Costco Wholesale by 1.2% during the first quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock worth $871,000 after purchasing an additional 10 shares during the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. increased its stake in shares of Costco Wholesale by 1.8% in the first quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock valued at $549,000 after buying an additional 10 shares during the period. First National Bank of Hutchinson increased its stake in shares of Costco Wholesale by 0.9% in 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 period. Frisch Financial Group Inc. raised its holdings in Costco Wholesale by 1.0% in the 1st quarter. Frisch Financial Group Inc. now owns 1,049 shares of the retailer's stock valued at $1,045,000 after buying an additional 10 shares during the last quarter. Finally, Main Street Group LTD raised its holdings in Costco Wholesale by 0.8% in the 1st quarter. Main Street Group LTD now owns 1,226 shares of the retailer's stock valued at $1,221,000 after buying an additional 10 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors.

Insider Activity at Costco Wholesale

In other Costco Wholesale 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 transaction, the executive vice president owned 7,134 shares in the company, valued at approximately $6,534,244.62. This trade represents a 23.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP William Richard Wilcox sold 1,100 shares of the firm's 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 transaction, the executive vice president owned 3,094 shares of the company's stock, valued at approximately $2,964,701.74. The trade was a 26.23% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale Trading Up 2.9%

NASDAQ COST opened at $982.00 on Thursday. The business's 50-day moving average price is $931.75 and its two-hundred day moving average price is $963.13. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The firm has a market capitalization of $435.15 billion, a PE ratio of 47.30, a price-to-earnings-growth ratio of 4.08 and a beta of 0.88. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11.

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 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 company had revenue of $95.72 billion during the quarter, compared to analysts' expectations of $94.97 billion. During the same quarter in the prior year, the firm posted $5.87 earnings per share. The business's quarterly revenue was up 11.1% on a year-over-year basis. On average, analysts expect that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Announces Dividend

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

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Defensive-sector rotation: Higher inflation prompted investors to move toward companies selling everyday necessities. Costco benefited alongside Walmart and Target as a perceived defensive retailer. Walmart Advances as Inflation Data Sends Money Into Defensives
• Positive Sentiment: Strong September sales momentum: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales rose 19%. The figures reinforce the strength of its membership, value-focused pricing and e-commerce operations. Costco September Sales Jump and Faster Digital Growth
• Positive Sentiment: Dividend declared: Costco’s board approved a quarterly cash dividend of $1.47 per share, payable November 13 to shareholders of record October 30. The payout provides a modest shareholder return and signals continued confidence in cash generation. Costco Announces Quarterly Cash Dividend
• Positive Sentiment: Expansion and balance-sheet support: Analysts highlighted Costco’s approximately $21.3 billion liquidity cushion, manageable debt and robust cash flows as advantages for funding new warehouses and digital investments. A Florida city council also gave an early approval for a new store. How Costco’s Balance Sheet Gives It an Edge
• Positive Sentiment: Positive earnings expectations: Erste Group raised its FY2027 EPS forecast to $22.80 from $22.67 and expects $25.01 for FY2028, modestly above the company’s current-year consensus outlook. Costco analyst estimates
• Neutral Sentiment: Articles highlighting Costco’s influence on home-buying decisions, younger membership growth and exclusive seasonal products reinforce brand engagement but are unlikely to materially change near-term earnings expectations. Inside the Costco Effect
• Negative Sentiment: Costco continues to trade at a demanding valuation, with a high price-to-earnings multiple. That leaves COST vulnerable if sales growth, membership trends or consumer spending weaken.

Analyst Ratings Changes

COST has been the topic of several recent research reports. Royal Bank Of Canada reiterated a "sector perform" rating and set a $1,000.00 target price on shares of Costco Wholesale in a research report on Friday, October 9th. Weiss Ratings upgraded shares of Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, October 8th. Mizuho decreased their price target on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating for the company in a research report on Friday, September 25th. Truist Financial dropped their price target on shares of 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. Finally, Raymond James Financial cut their price target on shares of Costco Wholesale from $1,100.00 to $1,050.00 and set an "outperform" rating on the stock in a report on Friday, September 25th. Twenty-three investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $1,081.79.

Costco Wholesale Company 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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