Costco Wholesale Corporation $COST Stake Reduced by Jackson Square Capital LLC

Key Points

• Jackson Square Capital cut its Costco stake by 40.2% in the third quarter, selling 2,775 shares and retaining 4,133 shares valued at approximately $3.76 million.
• Institutional investors and hedge funds own 68.48% of Costco, while company insiders own just 0.10%; two executive vice presidents also recently sold shares.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $1,087.40. Costco also exceeded quarterly earnings and revenue estimates and announced a $1.47 quarterly dividend.

Jackson Square Capital LLC decreased its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 40.2% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 4,133 shares of the retailer's stock after selling 2,775 shares during the quarter. Jackson Square Capital LLC's holdings in Costco Wholesale were worth $3,762,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Sarasin & Partners LLP increased its position in Costco Wholesale by 6.9% during the second quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer's stock worth $200,372,000 after buying an additional 13,795 shares during the last quarter. Nissay Asset Management Corp Japan lifted its position in shares of Costco Wholesale by 4.1% in the second quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer's stock valued at $148,193,000 after buying an additional 6,200 shares during the last quarter. Silvant Capital Management LLC bought a new position in shares of Costco Wholesale during the 2nd quarter worth approximately $16,013,000. Hyperion Asset Management Ltd boosted its stake in shares of Costco Wholesale by 9.0% during the 2nd quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer's stock worth $64,325,000 after acquiring an additional 5,656 shares during the period. Finally, Concurrent Investment Advisors LLC increased its holdings in shares of Costco Wholesale by 15.0% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 22,766 shares of the retailer's stock worth $21,297,000 after acquiring an additional 2,974 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, EVP William Richard Wilcox sold 1,100 shares of the business's stock in a transaction dated 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 sale, 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Claudine Adamo sold 2,200 shares of the business's stock in a transaction dated 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 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 position. The SEC filing for this sale provides additional information. 0.10% of the stock is currently owned by company insiders.

Analyst Ratings Changes

COST has been the topic of a number of research analyst reports. Robert W. Baird set a $1,175.00 price target on Costco Wholesale in a research note on Friday, September 25th. Evercore reaffirmed an "outperform" rating on shares of Costco Wholesale in a research report on Tuesday, September 22nd. HSBC upgraded shares of Costco Wholesale to a "buy" rating in a report on Friday, September 25th. Roth Capital reissued a "sell" rating and issued a $781.00 price objective on shares of Costco Wholesale in a research report on Friday, September 25th. Finally, Royal Bank Of Canada restated a "sector perform" rating and set a $1,000.00 target price on shares of Costco Wholesale in a research note on Friday, October 9th. Twenty-four 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. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $1,087.40.

Costco Wholesale Stock Performance

Shares of Costco Wholesale stock traded up $4.81 on Monday, hitting $993.92. The stock had a trading volume of 612,861 shares, compared to its average volume of 2,187,307. The stock has a market cap of $440.43 billion, a price-to-earnings ratio of 47.84, a price-to-earnings-growth ratio of 4.23 and a beta of 0.88. 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 Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50. The business's 50 day moving average is $933.15 and its two-hundred day moving average is $963.04.

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, topping the consensus estimate of $6.54 by $0.21. The business had revenue of $95.72 billion during the quarter, compared to analysts' expectations of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The firm's revenue for the quarter was up 11.1% compared to the same quarter last year. During the same period last year, the firm posted $5.87 EPS. Analysts forecast that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Dividend Announcement

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 given a dividend of $1.47 per share. 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 presently 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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