Costco Wholesale Corporation $COST Shares Sold by Guardian Investment Management

Key Points

• Guardian Investment Management cut its Costco position by 32.4% in the third quarter, selling 1,501 shares and retaining 3,134 shares worth approximately $2.85 million. Institutional investors collectively own 68.48% of the company.
• Analyst sentiment remains favorable, with a consensus rating of “Moderate Buy” and an average price target of $1,086.19. Costco also exceeded quarterly earnings and revenue expectations, reporting $6.75 in EPS and $95.72 billion in revenue.
• Valuation and competition are key risks: Costco trades at about 48 times earnings, while Kroger’s planned price cuts and investments could intensify grocery competition and pressure margins. Two Costco executives also recently sold shares.

Guardian Investment Management reduced its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 32.4% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 3,134 shares of the retailer's stock after selling 1,501 shares during the period. Costco Wholesale makes up 1.9% of Guardian Investment Management's investment portfolio, making the stock its 12th largest holding. Guardian Investment Management's holdings in Costco Wholesale were worth $2,853,000 at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. Contravisory Investment Management Inc. lifted its stake in shares of Costco Wholesale by 107.7% in the third quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer's stock valued at $25,000 after buying an additional 14 shares in the last quarter. C M Bidwell & Associates Ltd. acquired a new position in shares of Costco Wholesale during the second quarter valued at about $28,000. Burk Holdings LLC acquired a new position in shares of Costco Wholesale during the second quarter valued at about $30,000. Manning & Napier Advisors LLC bought a new stake in shares of Costco Wholesale during the second quarter worth about $30,000. Finally, Bullseye Investment Management LLC bought a new stake in shares of Costco Wholesale during the second quarter worth about $35,000. Institutional investors and hedge funds own 68.48% of the company's stock.

Key Headlines Impacting Costco Wholesale

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

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the stock. Argus restated a "buy" rating and issued a $1,230.00 target price on shares of Costco Wholesale in a report on Monday, September 28th. Evercore reiterated an "outperform" rating on shares of Costco Wholesale in a research note on Tuesday, September 22nd. Jefferies Financial Group decreased their price objective on Costco Wholesale from $1,130.00 to $1,100.00 in a report on Friday, September 25th. Raymond James Financial lowered their price objective on Costco Wholesale from $1,100.00 to $1,050.00 and set an "outperform" rating for the company in a research note on Friday, September 25th. Finally, UBS Group reaffirmed a "buy" rating on shares of Costco Wholesale in a research report on Thursday, September 17th. Twenty-five analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $1,086.19.

Insider Activity at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale 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 transaction, the executive vice president owned 7,134 shares of the company's stock, valued at $6,534,244.62. This trade represents a 23.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of the business'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 value of $1,054,031.00. Following the completion of the transaction, the executive vice president owned 3,094 shares in the company, valued at $2,964,701.74. The trade was 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 company insiders.

Costco Wholesale Stock Performance

Shares of COST stock opened at $1,003.32 on Monday. The firm has a 50-day moving average of $937.96 and a 200-day moving average of $962.82. The company has a market cap of $444.60 billion, a P/E ratio of 48.33, a P/E/G ratio of 4.29 and a beta of 0.88. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50.

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

Costco Wholesale Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be paid 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 (DPR) is 28.32%.

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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