Costco Wholesale Corporation $COST Shares Sold by Investment House LLC

Key Points

• Investment House LLC cut its Costco stake by 37.8% in the third quarter, selling 23,518 shares and retaining 38,755 shares valued at approximately $35.3 million. Institutional investors still own 68.48% of the company.
• Costco exceeded quarterly expectations, reporting $6.75 in EPS and $95.72 billion in revenue, with revenue up 11.1% year over year. The company also declared a quarterly dividend of $1.47 per share, equal to a 0.6% annualized yield.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $1,086.19. However, Costco’s elevated valuation—about 48 times earnings—and intensifying grocery competition remain key risks.

Investment House LLC trimmed its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 37.8% during the third quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 38,755 shares of the retailer's stock after selling 23,518 shares during the period. Costco Wholesale makes up 1.5% of Investment House LLC's investment portfolio, making the stock its 11th largest holding. Investment House LLC's holdings in Costco Wholesale were worth $35,281,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. JSF Financial LLC grew its stake in shares of Costco Wholesale by 5.8% in the 3rd quarter. JSF Financial LLC now owns 2,050 shares of the retailer's stock valued at $1,866,000 after buying an additional 113 shares during the period. SBI Securities Co. Ltd. increased its position in Costco Wholesale by 6.5% in the 3rd quarter. SBI Securities Co. Ltd. now owns 4,926 shares of the retailer's stock valued at $4,484,000 after buying an additional 302 shares in the last quarter. Marion Wealth Management increased its position in Costco Wholesale by 4.6% in the 3rd quarter. Marion Wealth Management now owns 2,892 shares of the retailer's stock valued at $2,633,000 after buying an additional 127 shares in the last quarter. Cypress Wealth Services LLC raised its stake in Costco Wholesale by 9.0% during the 3rd quarter. Cypress Wealth Services LLC now owns 5,691 shares of the retailer's stock worth $5,325,000 after buying an additional 468 shares during the period. Finally, Obermeyer Wealth Partners raised its stake in Costco Wholesale by 1.2% during the 3rd quarter. Obermeyer Wealth Partners now owns 3,443 shares of the retailer's stock worth $3,135,000 after buying an additional 40 shares during the period. 68.48% of the stock is currently owned by institutional investors.

Costco Wholesale Trading Down 1.5%

COST opened at $1,003.32 on Friday. 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 fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The firm has a market capitalization of $444.60 billion, a PE ratio of 48.33, a P/E/G ratio of 4.35 and a beta of 0.88. The company's 50-day moving average is $937.96 and its 200 day moving average is $963.21.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced 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. The business 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%. The firm's revenue for the quarter was up 11.1% compared to the same quarter last year. During the same quarter last year, the firm earned $5.87 EPS. As a group, research analysts predict that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

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

Analyst Ratings Changes

Several research analysts have issued reports on the company. DA Davidson increased their price target on Costco Wholesale from $1,000.00 to $1,040.00 and gave the stock a "neutral" rating in a report on Friday, September 25th. Argus restated a "buy" rating and set a $1,230.00 price objective on shares of Costco Wholesale in a report on Monday, September 28th. JPMorgan Chase & Co. decreased their price objective on Costco Wholesale from $1,100.00 to $1,015.00 and set an "overweight" rating for the company in a report on Friday, September 25th. UBS Group reaffirmed a "buy" rating on shares of Costco Wholesale in a research report on Thursday, September 17th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a 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's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,086.19.

Key Costco Wholesale News

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

Insider Activity at Costco Wholesale

In related news, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale stock in a transaction that occurred on Tuesday, September 29th. The stock was 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. The trade was a 23.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP William Richard Wilcox sold 1,100 shares of the company's stock in a transaction 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 sale, the executive vice president owned 3,094 shares of the company's stock, valued at $2,964,701.74. This trade represents 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 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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