Costco Wholesale Corporation $COST Stock: Adams Diversified Equity Fund Inc. Grows Position

Key Points

• Adams Diversified Equity Fund increased its Costco position by 154.7% in the third quarter, bringing its holdings to 34,900 shares valued at approximately $31.8 million. Institutional investors collectively own 68.48% of Costco’s stock.
• 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 announced a quarterly dividend of $1.47 per share, yielding about 0.6% annually.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $1,086.19, although Costco’s high valuation—about 48 times earnings—creates sensitivity to slower growth or increased competition.

Adams Diversified Equity Fund Inc. grew its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 154.7% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 34,900 shares of the retailer's stock after buying an additional 21,200 shares during the quarter. Costco Wholesale accounts for 1.0% of Adams Diversified Equity Fund Inc.'s portfolio, making the stock its 23rd largest position. Adams Diversified Equity Fund Inc.'s holdings in Costco Wholesale were worth $31,771,000 as of its most recent SEC filing.

Several other large investors also recently made changes to their positions in COST. Contravisory Investment Management Inc. grew its stake in shares of Costco Wholesale by 107.7% during the third quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer's stock valued at $25,000 after acquiring an additional 14 shares in the last quarter. C M Bidwell & Associates Ltd. bought a new position in Costco Wholesale in the second quarter worth about $28,000. Burk Holdings LLC acquired a new stake in Costco Wholesale in the second quarter worth $30,000. Manning & Napier Advisors LLC acquired a new stake in shares of Costco Wholesale in the second quarter valued at approximately $30,000. Finally, Bullseye Investment Management LLC bought a new position in shares of Costco Wholesale in the second quarter worth $35,000. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Trading Down 1.5%

NASDAQ COST opened at $1,003.32 on Friday. The company has a market cap of $444.60 billion, a price-to-earnings ratio of 48.33, a price-to-earnings-growth ratio of 4.35 and a beta of 0.88. The business's fifty day moving average is $937.96 and its 200 day moving average is $963.21. 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.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating 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 for the quarter, compared to analysts' expectations of $94.97 billion. During the same period in the prior year, the business posted $5.87 earnings per share. The firm's revenue was up 11.1% on a year-over-year basis. As a group, sell-side analysts expect that Costco Wholesale Corporation will post 22.70 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be issued a $1.47 dividend. 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%.

Insider Buying and Selling

In other Costco Wholesale news, 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 value of $2,015,046.00. Following the sale, the executive vice president directly owned 7,134 shares in the company, valued at $6,534,244.62. This trade represents a 23.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction 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 transaction, the executive vice president owned 3,094 shares of the company's stock, valued at approximately $2,964,701.74. This represents a 26.23% decrease in their position. The SEC filing for this sale provides additional information. 0.10% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several research firms have issued reports on COST. 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. BMO Capital Markets restated an "outperform" rating on shares of Costco Wholesale in a research note on Friday, September 25th. Robert W. Baird set a $1,175.00 price target on shares of Costco Wholesale in a research note on Friday, September 25th. Mizuho reduced their price objective on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating on the stock in a research note on Friday, September 25th. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on shares of Costco Wholesale from $1,091.00 to $1,079.00 and set a "buy" rating on the stock in a research report on Monday, September 28th. Twenty-five analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $1,086.19.

More 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

About Costco Wholesale

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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