Costco Wholesale Corporation $COST Stock: China Universal Asset Management Co. Ltd. Boosts Holdings

Key Points

• China Universal Asset Management increased its Costco stake by 11.8% in the third quarter to 19,964 shares valued at approximately $18.5 million. Institutional investors collectively own 68.48% of Costco’s stock.
• Costco reported quarterly EPS of $6.75, beating estimates, while revenue rose 11.1% year over year to $95.72 billion. The company declared a quarterly dividend of $1.47, equivalent to a 0.6% annual yield.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $1,086.19, although Costco’s elevated valuation—about 48 times earnings—and recent insider selling remain risks.

China Universal Asset Management Co. Ltd. grew its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 11.8% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 19,964 shares of the retailer's stock after acquiring an additional 2,108 shares during the period. Costco Wholesale comprises approximately 1.0% of China Universal Asset Management Co. Ltd.'s portfolio, making the stock its 26th largest position. China Universal Asset Management Co. Ltd.'s holdings in Costco Wholesale were worth $18,459,000 as of its most recent SEC filing.

A number of other large investors have also modified their holdings of the stock. Contravisory Investment Management Inc. grew its stake in Costco Wholesale by 107.7% during the 3rd quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer's stock worth $25,000 after purchasing an additional 14 shares in the last quarter. C M Bidwell & Associates Ltd. purchased a new stake in Costco Wholesale during the 2nd quarter worth about $28,000. Burk Holdings LLC purchased a new stake in Costco Wholesale during the 2nd quarter worth about $30,000. Manning & Napier Advisors LLC acquired a new stake in Costco Wholesale in the 2nd quarter valued at about $30,000. Finally, John Boyer Inc. acquired a new stake in Costco Wholesale in the 3rd quarter valued at about $32,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

Key Costco Wholesale News

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

• Positive Sentiment: Costco’s shares increased as the Federal Trade Commission opened a pricing probe into rivals Walmart and Target. The investigation could highlight Costco’s value proposition and competitive positioning, although it does not directly involve Costco. Costco Stock Ticks Up as the FTC Launches Pricing Probe into Rivals
• Positive Sentiment: Recent coverage points to Costco attracting younger shoppers, including consumers under 40 who use mobile and artificial-intelligence tools while retaining interest in the company’s “treasure hunt” shopping experience. This suggests Costco’s brand and digital engagement remain relevant to future members. The New Costco Shopper Is Under 40
• Positive Sentiment: Analysts continue to cite Costco’s competitive advantages, including strong member loyalty, high renewal rates and the recurring revenue generated by memberships. CICC also initiated coverage with an Outperform rating, adding to the positive analyst sentiment. Costco Stock’s Long-Term Upside Could Come From These Competitive Advantages
• Positive Sentiment: Costco expanded real-time health-benefit redemptions to more than 600 U.S. warehouses through NationsBenefits. The initiative could improve convenience, support store traffic and create longer-term opportunities in healthcare-related services. Costco Brings Real-Time Health Benefit Checkouts to More Than 600 Stores
• Neutral Sentiment: Costco opened a location in Western New York, providing incremental warehouse expansion and potential membership growth, though the financial impact is likely limited in the near term. Costco Opens Its Doors in Western New York
• Negative Sentiment: Costco’s valuation remains a concern: its premium price-to-earnings multiple leaves less room for execution mistakes and may limit upside if growth slows. Costco’s Valuation Remains a Head Scratcher
• Negative Sentiment: Complaints about Costco’s food-court experience represent a minor customer-satisfaction risk, though the issue is unlikely to materially affect the investment thesis by itself. Costco Faces Major Food Court Complaints

Insider Activity at Costco Wholesale

In other news, EVP William Richard Wilcox sold 1,100 shares of the firm's 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 transaction, the executive vice president directly owned 3,094 shares in the company, valued at approximately $2,964,701.74. This trade represents a 26.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Claudine Adamo sold 2,200 shares of the firm's stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the transaction, the executive vice president owned 7,134 shares in the company, valued at approximately $6,534,244.62. This trade represents a 23.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is currently owned by corporate insiders.

Costco Wholesale Stock Up 1.4%

COST opened at $996.08 on Friday. The business's 50-day simple moving average is $941.73 and its 200-day simple moving average is $969.91. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The stock has a market capitalization of $441.39 billion, a P/E ratio of 48.06, a price-to-earnings-growth ratio of 4.20 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.54 by $0.21. The firm 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 business's revenue was up 11.1% on a year-over-year basis. During the same period in the prior year, the firm earned $5.87 EPS. Analysts anticipate 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. Stockholders of record on Friday, October 30th will be issued a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Friday, October 30th. Costco Wholesale's dividend payout ratio is presently 28.32%.

Analyst Ratings Changes

COST has been the subject of several recent research reports. Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a research note on Monday, September 28th. Wells Fargo & Company cut their target price on shares of Costco Wholesale from $1,000.00 to $950.00 and set an "equal weight" rating on the stock in a research note on Friday, September 25th. Raymond James Financial reduced their target price on shares of Costco Wholesale from $1,100.00 to $1,050.00 and set an "outperform" rating on the stock in a report on Friday, September 25th. Argus reiterated a "buy" rating and issued a $1,230.00 price target on shares of Costco Wholesale in a research note on Monday, September 28th. Finally, BMO Capital Markets reiterated an "outperform" rating on shares of Costco Wholesale in a report on Friday, September 25th. Twenty-five equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Costco Wholesale presently has an average rating of "Moderate Buy" and a consensus target price of $1,086.19.

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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