Costco Wholesale Corporation $COST Stock: Alta Advisers Ltd Boosts Position

Key Points

• Alta Advisers increased its Costco stake by 90.6% in the third quarter, to 3,175 shares valued at about $2.89 million.
• Costco beat quarterly estimates, reporting EPS of $6.75 versus $6.54 expected and revenue of $95.72 billion, up 11.1% year over year. October net sales rose 12.6% to $24.50 billion.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus and JPMorgan raising its price target to $1,150; however, valuation concerns remain, with Citi maintaining a Hold rating and a $1,020 target.

Alta Advisers Ltd boosted its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 90.6% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 3,175 shares of the retailer's stock after acquiring an additional 1,509 shares during the period. Alta Advisers Ltd's holdings in Costco Wholesale were worth $2,890,000 as of its most recent filing with the SEC.

Several other hedge funds have also added to or reduced their stakes in COST. First National Bank of Hutchinson lifted its stake in shares of Costco Wholesale by 0.9% during the 1st quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock valued at $1,094,000 after buying an additional 10 shares in the last quarter. Frisch Financial Group Inc. boosted its holdings in shares of Costco Wholesale by 1.0% in the first quarter. Frisch Financial Group Inc. now owns 1,049 shares of the retailer's stock worth $1,045,000 after acquiring an additional 10 shares during the period. Main Street Group LTD grew its position in shares of Costco Wholesale by 0.8% in the first quarter. Main Street Group LTD now owns 1,226 shares of the retailer's stock valued at $1,221,000 after purchasing an additional 10 shares in the last quarter. HORAN Wealth LLC grew its position in shares of Costco Wholesale by 1.3% in the first quarter. HORAN Wealth LLC now owns 803 shares of the retailer's stock valued at $769,000 after purchasing an additional 10 shares in the last quarter. Finally, SHUTTLEWORTH & Co grew its position in shares of Costco Wholesale by 0.4% in the first quarter. SHUTTLEWORTH & Co now owns 2,442 shares of the retailer's stock valued at $2,433,000 after purchasing an additional 10 shares in the last quarter. Institutional investors own 68.48% of the company's stock.

Costco Wholesale Trading Up 1.8%

Shares of Costco Wholesale stock opened at $1,065.59 on Friday. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The firm has a market cap of $472.19 billion, a PE ratio of 51.17, a PEG ratio of 4.47 and a beta of 0.85. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. The company has a 50 day simple moving average of $950.04 and a two-hundred day simple moving average of $972.05.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.54 by $0.21. The company had revenue of $95.72 billion during the quarter, compared to the consensus estimate 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 was up 11.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $5.87 EPS. Analysts expect that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

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

Insider Buying and Selling

In other news, EVP Claudine Adamo sold 2,200 shares of the company'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 completion of the sale, the executive vice president owned 7,134 shares of the company's stock, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 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 position. The disclosure for this sale is available in the SEC filing. Insiders own 0.10% of the company's stock.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: JPMorgan raised its price target to $1,150 from $1,015 and maintained an Overweight rating, citing potential upside from the current level. JPMorgan analyst recommendations
• Positive Sentiment: October net sales increased 12.6% year over year to $24.50 billion. U.S. comparable sales also rose 12.6%; Bank of America noted that U.S. comps were up 8.1% after adjusting for gasoline price changes and maintained its Buy rating. The strong sales momentum is a key near-term catalyst. Costco October sales results Bank of America rating and U.S. comparable sales
• Negative Sentiment: Valuation concerns persist after Costco’s rally: some commentary argues the stock’s elevated earnings multiple leaves limited room for disappointment. Citi maintained a Hold rating and $1,020 price target, below the recently quoted share price. Citi rating and price target Costco valuation discussion

Analyst Upgrades and Downgrades

COST has been the topic of a number of analyst reports. HSBC upgraded Costco Wholesale to a "buy" rating in a research note on Friday, September 25th. JPMorgan Chase & Co. raised their target price on Costco Wholesale from $1,015.00 to $1,150.00 and gave the stock an "overweight" rating in a research note on Thursday. Mizuho reduced their target price on Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating for the company in a report on Friday, September 25th. Sanford C. Bernstein decreased their price target on Costco Wholesale from $1,144.00 to $1,143.00 and set an "outperform" rating on the stock in a research report on Friday, September 25th. Finally, BTIG Research reiterated a "buy" rating and set a $1,125.00 price target on shares of Costco Wholesale in a research report on Wednesday, September 23rd. One research analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $1,090.55.

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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