Costco Wholesale Corporation $COST Stock: Goelzer Investment Management Inc. Cuts Stake

Key Points

• Goelzer Investment Management cut its Costco stake by 13.5% in the third quarter, selling 1,239 shares and retaining 7,907 shares valued at approximately $7.2 million. Institutional investors still own 68.48% of the company.
• Costco reported strong quarterly results, with EPS of $6.75 beating estimates and revenue rising 11.1% year over year to $95.72 billion. September net sales also increased 13%, while digitally enabled sales grew 19%.
• The stock carries a “Moderate Buy” consensus rating with a $1,087.40 average price target, but its elevated valuation, insider selling and macroeconomic risks remain concerns. Costco also declared a quarterly dividend of $1.47 per share, representing a 0.6% yield.

Goelzer Investment Management Inc. reduced its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 13.5% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 7,907 shares of the retailer's stock after selling 1,239 shares during the period. Goelzer Investment Management Inc.'s holdings in Costco Wholesale were worth $7,198,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of COST. Contravisory Investment Management Inc. lifted its holdings in 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 purchasing an additional 14 shares in the last quarter. C M Bidwell & Associates Ltd. purchased a new position in Costco Wholesale in the 2nd quarter worth approximately $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of Costco Wholesale during the fourth quarter valued at approximately $27,000. Burk Holdings LLC purchased a new position in shares of Costco Wholesale in the second quarter worth $30,000. Finally, Manning & Napier Advisors LLC bought a new stake in Costco Wholesale in the 2nd quarter valued at $30,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Price Performance

NASDAQ COST opened at $989.11 on Friday. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. The firm has a market capitalization of $438.30 billion, a P/E ratio of 47.64, a P/E/G ratio of 4.18 and a beta of 0.88. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The firm's fifty day simple moving average is $933.15 and its two-hundred day simple moving average is $963.28.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly 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 business had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. Costco Wholesale's revenue for the quarter was up 11.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $5.87 EPS. Analysts forecast that Costco Wholesale Corporation will post 22.70 EPS for the current fiscal 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 of this dividend is Friday, October 30th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is presently 28.32%.

Costco Wholesale News Summary

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

• Positive Sentiment: September sales accelerated: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results reinforce the strength of Costco’s membership model, e-commerce business and value-focused offering. September Sales Growth
• Positive Sentiment: Analyst support remains strong: Tigress Financial reiterated a Buy rating while setting a $1,065 price target after previously publicizing a higher $1,250 target. Other coverage highlights Costco’s sales growth, membership loyalty and digital gains, supporting the recent recovery above key moving averages. Tigress Financial Price Target
• Positive Sentiment: Dividend maintained: Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. While the approximately 0.6% yield is modest, the payment signals continued cash-flow strength. Costco Dividend Announcement
• Positive Sentiment: Expansion pipeline: Proposed warehouse projects in Macon and Oakland, along with a planned Merced County relocation, point to continued investment in Costco’s store network. Infrastructure financing of up to $30 million could support the Macon development. Macon Costco Project
• Neutral Sentiment: Costco’s fiscal 2027 executive bonus plan adds sustainability-related measures. The change may support long-term operational goals, but it is unlikely to materially affect near-term earnings. Costco Executive Bonus Update
• Negative Sentiment: Valuation and macro risks remain: Costco trades at a high earnings multiple, leaving the stock vulnerable if growth or membership trends slow. Persistent inflation and potentially higher interest rates could also pressure consumer spending and market valuations.
• Negative Sentiment: An executive sold 1,100 shares worth approximately $1.05 million. The transaction is relatively small compared with Costco’s market value, but it may add a modest cautionary signal for investors. Costco Insider Sale

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Jefferies Financial Group lowered their target price on Costco Wholesale from $1,130.00 to $1,100.00 in a research report on Friday, September 25th. Wells Fargo & Company decreased their price target on Costco Wholesale from $1,000.00 to $950.00 and set an "equal weight" rating on the stock in a report on Friday, September 25th. UBS Group reiterated a "buy" rating on shares of Costco Wholesale in a research report on Thursday, September 17th. Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a report on Monday, September 28th. Finally, Truist Financial dropped their target price on Costco Wholesale from $1,011.00 to $955.00 and set a "hold" rating for the company in a research report on Friday, September 25th. Twenty-four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Costco Wholesale has an average rating of "Moderate Buy" and a consensus target price of $1,087.40.

Insiders Place Their Bets

In other Costco Wholesale news, EVP William Richard Wilcox sold 1,100 shares of Costco Wholesale stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total value 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. The trade was a 26.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale stock in a transaction 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 sale, the executive vice president directly owned 7,134 shares in the company, valued at $6,534,244.62. This represents a 23.57% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.

Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.