Costco Wholesale Corporation $COST Stake Cut by Ninety One North America Inc.

Key Points

• Ninety One North America cut its Costco stake by 30.7% in the third quarter, while other institutional investors increased holdings. Institutions collectively own 68.48% of the retailer’s shares.
• Costco reported strong quarterly results, with EPS of $6.75 beating estimates and revenue rising 11.1% year over year to $95.72 billion. The company declared a quarterly dividend of $1.47 per share, representing a 0.6% yield.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $1,087.40, although Costco’s high valuation and recent executive stock sales remain potential risks.

Ninety One North America Inc. trimmed its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 30.7% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 3,204 shares of the retailer's stock after selling 1,422 shares during the period. Ninety One North America Inc.'s holdings in Costco Wholesale were worth $2,917,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently modified their holdings of the business. Turtle Creek Wealth Advisors LLC grew its stake in shares of Costco Wholesale by 13.2% during the 3rd quarter. Turtle Creek Wealth Advisors LLC now owns 18,745 shares of the retailer's stock worth $16,006,000 after purchasing an additional 2,183 shares during the period. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors lifted its stake in shares of Costco Wholesale by 45.5% in the third quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors now owns 4,378 shares of the retailer's stock valued at $3,985,000 after purchasing an additional 1,369 shares during the period. Nvwm LLC lifted its stake in shares of Costco Wholesale by 4.2% in the third quarter. Nvwm LLC now owns 5,079 shares of the retailer's stock valued at $4,624,000 after purchasing an additional 203 shares during the period. Fort Washington Investment Advisors Inc. OH lifted its stake in shares of Costco Wholesale by 125.2% in the third quarter. Fort Washington Investment Advisors Inc. OH now owns 14,285 shares of the retailer's stock valued at $13,004,000 after purchasing an additional 7,941 shares during the period. Finally, Martin Capital Advisors LLP boosted its holdings in Costco Wholesale by 66.7% during the third quarter. Martin Capital Advisors LLP now owns 7,682 shares of the retailer's stock worth $6,993,000 after buying an additional 3,074 shares in the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the company's stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total value 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. This represents a 23.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the sale, the executive vice president owned 3,094 shares in the company, valued at $2,964,701.74. This represents a 26.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.10% of the company's stock.

Costco Wholesale Trading Down 0.4%

Shares of COST stock opened at $978.01 on Friday. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The stock has a market cap of $433.38 billion, a P/E ratio of 47.11, a P/E/G ratio of 4.20 and a beta of 0.88. The business has a fifty day simple moving average of $932.33 and a 200-day simple moving average of $963.09. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11.

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 (EPS) for the quarter, topping 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 business had revenue of $95.72 billion during the quarter, compared to the consensus estimate of $94.97 billion. During the same quarter in the previous year, the company posted $5.87 EPS. The business's revenue was up 11.1% on a year-over-year basis. On average, analysts forecast that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The firm also recently announced 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 annualized dividend and a yield of 0.6%. The ex-dividend date is Friday, October 30th. Costco Wholesale's dividend payout ratio (DPR) is 28.32%.

Key Costco Wholesale News

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

• Positive Sentiment: Major price-target increase: Tigress Financial raised its COST price target from $1,065 to $1,250 and assigned a “buy” rating, implying substantial potential upside. Costco analyst price target report
• Positive Sentiment: Strong operating momentum: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results support the strength of its membership model and e-commerce business. Costco September sales report
• Positive Sentiment: Defensive positioning: Higher-than-expected inflation has encouraged investors to favor retailers selling essential goods. Costco benefited from this rotation alongside Walmart and Target. Retail defensive-sector rotation
• Positive Sentiment: Dividend and expansion: Costco declared a quarterly dividend of $1.47 per share, payable November 13. Proposed new warehouses in Oakland and Merced County also point to continued long-term store expansion. Costco dividend announcement
• Neutral Sentiment: Analysts continue to expect earnings growth, with one estimate for fiscal 2027 EPS raised to $22.80. However, commentary describing COST as a portfolio-risk amplifier suggests investors remain focused on its correlation with the broader market and premium valuation. Costco market risk analysis
• Negative Sentiment: Valuation and insider selling: Costco trades at a high earnings multiple, leaving the stock vulnerable to disappointment in membership, sales or consumer spending trends. Separately, EVP William Richard Wilcox sold 1,100 shares worth approximately $1.05 million, reducing his position by 26.23%. Costco insider sale report

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Oppenheimer restated an "outperform" rating and set a $1,160.00 target price on shares of Costco Wholesale in a research report on Wednesday, September 16th. Tigress Financial increased their target price on shares of Costco Wholesale from $1,065.00 to $1,250.00 and gave the company a "buy" rating in a report on Thursday. Royal Bank Of Canada reiterated a "sector perform" rating and set a $1,000.00 price target on shares of Costco Wholesale in a research report on Friday, October 9th. HSBC raised Costco Wholesale to a "buy" rating in a research note on Friday, September 25th. Finally, DA Davidson boosted their price target on Costco Wholesale from $1,000.00 to $1,040.00 and gave the stock a "neutral" rating in a research note on Friday, September 25th. Twenty-four 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. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $1,087.40.

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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