Costco Wholesale Corporation $COST Shares Sold by Penobscot Investment Management Company Inc.

Key Points

• Penobscot Investment Management reduced its Costco stake by 7.1%, selling 1,657 shares and retaining 21,682 shares valued at approximately $19.7 million. Institutional investors and hedge funds collectively own 68.48% of Costco.
• Costco reported stronger-than-expected quarterly results, with EPS of $6.75 versus a $6.54 consensus estimate and revenue of $95.72 billion, up 11.1% year over year.
• Shares opened at $992.13, carrying a relatively high P/E ratio of 47.79. Analysts maintain a consensus “Moderate Buy” rating, while Costco declared a quarterly dividend of $1.47 per share, representing a 0.6% yield.

Penobscot Investment Management Company Inc. lowered its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 7.1% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 21,682 shares of the retailer's stock after selling 1,657 shares during the period. Costco Wholesale makes up approximately 1.4% of Penobscot Investment Management Company Inc.'s portfolio, making the stock its 14th biggest holding. Penobscot Investment Management Company Inc.'s holdings in Costco Wholesale were worth $19,738,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in COST. Arthur M. Cohen & Associates LLC lifted its stake in shares of Costco Wholesale by 0.3% in the 3rd quarter. Arthur M. Cohen & Associates LLC now owns 16,415 shares of the retailer's stock valued at $14,943,000 after purchasing an additional 46 shares in the last quarter. Cahaba Wealth Management Inc. increased its position in Costco Wholesale by 1.4% during the 3rd quarter. Cahaba Wealth Management Inc. now owns 1,183 shares of the retailer's stock worth $1,077,000 after purchasing an additional 16 shares in the last quarter. Oppenheimer & Co. Inc. raised its holdings in Costco Wholesale by 1.3% in the third quarter. Oppenheimer & Co. Inc. now owns 95,122 shares of the retailer's stock valued at $86,593,000 after buying an additional 1,243 shares during the period. Segment Wealth Management LLC raised its holdings in Costco Wholesale by 0.6% in the third quarter. Segment Wealth Management LLC now owns 21,914 shares of the retailer's stock valued at $19,949,000 after buying an additional 140 shares during the period. Finally, Verdence Capital Advisors LLC lifted its position in Costco Wholesale by 22.9% during the third quarter. Verdence Capital Advisors LLC now owns 17,221 shares of the retailer's stock valued at $15,677,000 after buying an additional 3,206 shares in the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Stock Performance

COST stock opened at $992.13 on Wednesday. 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 Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The stock has a 50-day simple moving average of $940.52 and a 200-day simple moving average of $969.21.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping the consensus estimate of $6.54 by $0.21. The company had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. The business's revenue was up 11.1% on a year-over-year basis. During the same period last year, the firm posted $5.87 earnings per share. On average, equities research analysts predict that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Announces Dividend

The company 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 dividend of $1.47 per share. The ex-dividend date is Friday, October 30th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) 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

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. BMO Capital Markets reiterated an "outperform" rating on shares of Costco Wholesale in a research note on Friday, September 25th. Jefferies Financial Group dropped their price objective on shares of Costco Wholesale from $1,130.00 to $1,100.00 in a research report on Friday, September 25th. Robert W. Baird set a $1,175.00 target price on shares of Costco Wholesale in a research note on Friday, September 25th. Bank of America reduced their target price on shares of Costco Wholesale from $1,200.00 to $1,095.00 and set a "buy" rating on the stock in a report on Wednesday, September 16th. Finally, Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a report on Monday, September 28th. Twenty-five research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Costco Wholesale has a consensus rating of "Moderate Buy" and a consensus target price of $1,086.19.

Insider Buying and Selling

In other news, EVP William Richard Wilcox sold 1,100 shares of the company's stock in a transaction on Tuesday, October 13th. The shares were 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 directly owned 3,094 shares in the company, valued at approximately $2,964,701.74. This represents a 26.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Claudine Adamo sold 2,200 shares of the firm'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 directly owned 7,134 shares of the company's stock, valued at approximately $6,534,244.62. The trade was a 23.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company 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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