Costco Wholesale Corporation $COST Stock Holdings Lifted by Sumitomo Mitsui DS Asset Management Company Ltd

Key Points

• Institutional ownership increased: Sumitomo Mitsui DS Asset Management raised its Costco stake by 2.7% to 66,342 shares worth approximately $60.4 million. Institutional investors collectively own 68.48% of the company.
• Strong operating performance supports the stock: Costco reported quarterly EPS of $6.75 and revenue of $95.72 billion, exceeding analyst estimates, with revenue up 11.1% year over year. The company also declared a quarterly dividend of $1.47 per share.
• Valuation and insider selling remain concerns: Costco trades near $995 at roughly 48 times earnings, while two executives recently reduced their holdings through stock sales. Analysts remain broadly positive, with a “Moderate Buy” consensus but a $1,087.40 average price target.

Sumitomo Mitsui DS Asset Management Company Ltd increased its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 2.7% in the 3rd quarter, according to its most recent 13F filing with the SEC. The firm owned 66,342 shares of the retailer's stock after buying an additional 1,724 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd's holdings in Costco Wholesale were worth $60,394,000 at the end of the most recent quarter.

Other institutional investors have also bought and sold shares of the company. Wealth Effects LLC boosted its stake in shares of Costco Wholesale by 1.2% in the first quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock worth $871,000 after acquiring an additional 10 shares during the period. Folger Nolan Fleming Douglas Capital Management Inc. grew its position in shares of Costco Wholesale by 1.8% during the first quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock worth $549,000 after purchasing an additional 10 shares in the last quarter. First National Bank of Hutchinson raised its stake in 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 purchasing an additional 10 shares during the period. Frisch Financial Group Inc. raised its stake in Costco Wholesale by 1.0% during the 1st quarter. Frisch Financial Group Inc. now owns 1,049 shares of the retailer's stock valued at $1,045,000 after purchasing an additional 10 shares during the period. Finally, Main Street Group LTD lifted its holdings in Costco Wholesale by 0.8% in the 1st quarter. Main Street Group LTD now owns 1,226 shares of the retailer's stock worth $1,221,000 after purchasing an additional 10 shares in the last quarter. 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 low-price, high-volume model could benefit as inflation reaches 3.7% and shoppers become more focused on value. Its membership model and self-imposed markup discipline may help defend customer traffic and retention. Inflation Just Hit 3.7%: Here’s Why Walmart and Costco Could Be the Biggest Winners
• Positive Sentiment: Costco continues to show strong sales momentum, while faster delivery, AI-assisted shopping and digital partnerships are supporting online growth across the retail sector. These trends could help Costco broaden customer engagement beyond its warehouses. Walmart, Target and Costco Win Over Digital Shoppers With Speed
• Neutral Sentiment: International expansion remains a long-term opportunity: 292 of Costco’s 939 warehouses are outside the United States and Puerto Rico. However, overseas growth must generate enough recurring memberships to cover local investment and operating costs. Can Costco’s Membership Model Travel Further Overseas?
• Neutral Sentiment: Articles highlighting Costco’s customer loyalty, food-court offerings and tote-bag initiatives reinforce its value-oriented brand, but these developments are unlikely to materially change near-term earnings expectations. Costco Is One of the Best Retailers on the Planet
• Negative Sentiment: Walmart’s push toward $1 trillion in holiday sales highlights growing competitive pressure during the crucial shopping season. Investors may question whether Costco can maintain its sales momentum against Walmart’s broader assortment and digital reach. Costco Stock Flat as Walmart Aims at $1 Trillion Holiday Sales
• Negative Sentiment: Valuation remains the primary concern. Costco’s strong multiyear gains and roughly 49-times earnings multiple leave limited room for disappointment, while Truist maintained a Hold rating and a $955 price target below the current trading level. Why Truist Remains on the Sidelines on Costco Despite Sales Momentum

Insider Activity at Costco Wholesale

In other news, EVP Claudine Adamo sold 2,200 shares of the company'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 sale, the executive vice president directly owned 7,134 shares of the company's stock, valued at $6,534,244.62. This represents a 23.57% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of the company'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 sale, the executive vice president directly owned 3,094 shares in the company, valued at $2,964,701.74. This trade represents a 26.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.10% of the company's stock.

Costco Wholesale Trading Down 0.1%

Shares of Costco Wholesale stock opened at $994.61 on Wednesday. The firm has a market cap of $440.74 billion, a price-to-earnings ratio of 47.91, a PEG ratio of 4.25 and a beta of 0.88. The business has a 50-day moving average price of $935.01 and a 200-day moving average price of $963.02. 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.

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, topping the consensus estimate of $6.54 by $0.21. The firm had revenue of $95.72 billion for 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% compared to the same quarter last year. During the same period in the previous year, the firm posted $5.87 earnings per share. Equities research analysts anticipate that Costco Wholesale Corporation will post 22.70 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Investors 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 yield of 0.6%. Costco Wholesale's dividend payout ratio is presently 28.32%.

Wall Street Analyst Weigh In

Several research firms have weighed in on COST. Freedom Broker dropped their price target on Costco Wholesale from $1,030.00 to $1,010.00 and set a "buy" rating for the company in a research note on Friday, September 25th. Guggenheim reaffirmed a "neutral" rating on shares of Costco Wholesale in a report on Monday, September 28th. Roth Capital reiterated a "sell" rating and set a $781.00 price objective on shares of Costco Wholesale in a research report on Friday, September 25th. Evercore reiterated an "outperform" rating on shares of Costco Wholesale in a research report on Tuesday, September 22nd. Finally, BMO Capital Markets reissued an "outperform" rating on shares of Costco Wholesale in a report on Friday, September 25th. Twenty-five research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Costco Wholesale has an average rating of "Moderate Buy" and a consensus price target of $1,087.40.

Costco Wholesale Company 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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