Costco Wholesale Corporation $COST Stock: Asset One Wealth Management LLC Increases Holdings

Key Points

• Asset One Wealth Management increased its Costco stake 28.4% in the third quarter, adding 1,671 shares to hold 7,547 shares valued at about $6.87 million. Institutional investors own 68.48% of the stock.
• Costco reported October net sales of $24.50 billion, up 12.6% year over year, with U.S. comparable sales rising 8.1% excluding gasoline-price changes. Its latest quarterly EPS of $6.75 also topped analyst expectations.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus and an average price target of $1,090.55, but Costco’s valuation is a risk: the article cites a P/E near 51 and notes concerns about whether earnings growth can support it.

Asset One Wealth Management LLC grew its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 28.4% in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 7,547 shares of the retailer's stock after purchasing an additional 1,671 shares during the quarter. Asset One Wealth Management LLC's holdings in Costco Wholesale were worth $6,870,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in COST. Sarasin & Partners LLP boosted 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 purchasing an additional 13,795 shares in the last quarter. Silvant Capital Management LLC bought a new stake in shares of Costco Wholesale during the 2nd quarter valued at about $16,013,000. Nissay Asset Management Corp Japan grew its position in Costco Wholesale by 4.1% during the 2nd quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer's stock worth $148,193,000 after purchasing an additional 6,200 shares during the period. Hyperion Asset Management Ltd raised its position 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 purchasing an additional 5,656 shares during the last quarter. Finally, Concurrent Investment Advisors LLC increased its position in shares of Costco Wholesale by 15.0% in the second 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 in the last quarter. 68.48% of the stock is owned by institutional investors.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco reported October net sales of $24.50 billion, up 12.6% year over year. U.S. comparable sales rose 8.1% excluding gasoline-price changes, while digital growth also accelerated—evidence of continued customer demand. Costco's October Net Sales Jump 12.6% as Digital Growth Accelerates
• Positive Sentiment: JPMorgan raised its price target to $1,150 from $1,015 and maintained an overweight rating. Bank of America also kept its buy rating following the stronger U.S. comparable-sales results. JPMorgan price-target update Costco retains BofA buy as October U.S. comps rise
• Neutral Sentiment: Recent coverage points to solid share-price momentum, supported by a string of earnings beats, but investors may be watching whether earnings growth can justify the stock’s valuation. Costco Stock: Earnings Growth Could Shape the Next Big Move
• Negative Sentiment: Valuation remains a key risk: reports cite a trailing P/E near 49, leaving limited room for disappointment, while earnings revisions have raised concerns. Citi maintained a hold rating with a $1,020 target, reflecting a more cautious view than JPMorgan’s. Costco Stock: Why Analysts Are Split Despite Strong October Sales

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $1,053.56 on Friday. 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 company has a 50-day moving average price of $952.42 and a two-hundred day moving average price of $972.49. The firm has a market capitalization of $466.86 billion, a PE ratio of 50.88, a P/E/G ratio of 4.45 and a beta of 0.85.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.54 by $0.21. The company had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The firm's quarterly revenue was up 11.1% on a year-over-year basis. During the same quarter last year, the company earned $5.87 EPS. Equities analysts forecast that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Announces Dividend

The firm 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. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Friday, October 30th. Costco Wholesale's dividend payout ratio is currently 28.32%.

Analyst Upgrades and Downgrades

COST has been the topic of a number of analyst reports. Royal Bank Of Canada reissued a "sector perform" rating and set a $1,000.00 target price on shares of Costco Wholesale in a report on Friday, October 9th. DA Davidson lifted their price objective 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. Argus reiterated a "buy" rating and set a $1,230.00 price target on shares of Costco Wholesale in a research report on Monday, September 28th. TD Cowen began coverage on Costco Wholesale in a research note on Friday, October 30th. They set a "strong-buy" rating on the stock. Finally, Robert W. Baird set a $1,175.00 price target on Costco Wholesale in a research note on Friday, September 25th. One research analyst has rated the stock with a Strong Buy rating, twenty-four have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $1,090.55.

Insiders Place Their Bets

In other news, 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 $6,534,244.62. The trade was a 23.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP William Richard Wilcox sold 1,100 shares of Costco Wholesale stock in a transaction on Tuesday, October 13th. The stock was 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 in the company, valued at approximately $2,964,701.74. The trade was a 26.23% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.10% of the company's stock.

About Costco Wholesale

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally low prices. Its products include groceries, fresh foods, appliances, electronics, apparel, furniture, and household goods, as well as its Kirkland Signature private-label line.

The company also provides services such as gasoline stations, pharmacies, optical and hearing-aid centers, food courts, and travel offerings. Costco serves members through warehouses and online channels.

Founded in 1983 in Seattle, Costco has expanded across North America, Europe, Asia, and Australia.

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