Costco Wholesale Corporation $COST Stock: Citizens Financial Group Inc. RI Decreases Holdings

Key Points

• Citizens Financial Group reduced its Costco stake by 3.2% in the third quarter, selling 1,226 shares and retaining 37,010 shares valued at approximately $33.7 million. Institutional investors and hedge funds collectively own 68.48% of Costco.
• Costco reported quarterly results above expectations, with EPS of $6.75 and revenue of $95.72 billion, up 11.1% year over year. The company also declared a quarterly dividend of $1.47 per share, representing a 0.6% yield.
• Analyst sentiment remains broadly positive, with 25 Buy ratings, eight Holds and one Sell, producing a “Moderate Buy” consensus and an average price target of $1,086.19. However, Costco’s elevated valuation and intensifying competition from Kroger remain key risks.

Citizens Financial Group Inc. RI reduced its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 3.2% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 37,010 shares of the retailer's stock after selling 1,226 shares during the quarter. Citizens Financial Group Inc. RI's holdings in Costco Wholesale were worth $33,692,000 at the end of the most recent reporting period.

Several other large investors have also made changes to their positions in COST. Bank of America Corp DE acquired a new stake in shares of Costco Wholesale in the second quarter valued at approximately $6,781,946,000. Diamant Asset Management Inc. lifted its holdings in Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock worth $672,690,000 after buying an additional 6,720,130 shares in the last quarter. State Street Corp boosted its position in shares of Costco Wholesale by 31.7% during the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock worth $22,359,224,000 after acquiring an additional 5,749,362 shares in the last quarter. Legal & General Group Plc acquired a new stake in Costco Wholesale during the 2nd quarter worth $2,362,188,000. Finally, Ascentis Wealth Management LLC increased its position in Costco Wholesale by 103,637.0% during the second quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer's stock worth $2,549,616,000 after buying an additional 2,497,652 shares during the period. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale News Summary

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

Costco Wholesale Price Performance

COST stock opened at $1,003.32 on Monday. The company has a market cap of $444.60 billion, a PE ratio of 48.33, a price-to-earnings-growth ratio of 4.29 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 simple moving average is $937.96 and its 200 day simple moving average is $962.82.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly 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 net margin of 3.04% and a return on equity of 27.60%. 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 firm earned $5.87 earnings per share. Costco Wholesale's revenue was up 11.1% compared to the same quarter last year. On average, research analysts anticipate that Costco Wholesale Corporation will post 22.70 earnings per share 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 paid a dividend of $1.47 per share. The ex-dividend date is Friday, October 30th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's payout ratio is currently 28.32%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on COST. DA Davidson boosted their price target on shares of 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. Weiss Ratings raised Costco Wholesale from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday. Bank of America reduced their price target on shares of Costco Wholesale from $1,200.00 to $1,095.00 and set a "buy" rating on the stock in a research report on Wednesday, September 16th. Deutsche Bank Aktiengesellschaft decreased their price target on shares of Costco Wholesale from $1,091.00 to $1,079.00 and set a "buy" rating for the company in a research report on Monday, September 28th. Finally, Roth Capital restated a "sell" rating and set a $781.00 price objective on shares of Costco Wholesale in a research report on Friday, September 25th. Twenty-five 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's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $1,086.19.

Insider Transactions at Costco Wholesale

In related news, EVP William Richard Wilcox sold 1,100 shares of the business's stock in a transaction that occurred on Tuesday, October 13th. The stock was 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 directly owned 3,094 shares in the company, 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 filing with the SEC, which is accessible through this link. Also, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale stock in a transaction that occurred on 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 transaction, 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 ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.10% of the company's stock.

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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