Costco Wholesale Corporation $COST Stock Holdings Raised by CX Institutional

Key Points

• CX Institutional more than doubled its Costco stake in the third quarter, increasing holdings by 103% to 13,977 shares valued at approximately $12.7 million. Institutional investors collectively own 68.48% of Costco’s stock.
• Costco reported quarterly EPS of $6.75, beating estimates of $6.54, while revenue rose 11.1% year over year to $95.72 billion. The company also maintains a quarterly dividend of $1.47 per share, yielding about 0.6%.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $1,046.27. However, Costco’s premium valuation, rising operating costs and a $2.02 million insider stock sale could weigh on investor sentiment.

CX Institutional boosted its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 103.0% during the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 13,977 shares of the retailer's stock after acquiring an additional 7,091 shares during the quarter. CX Institutional's holdings in Costco Wholesale were worth $12,724,000 at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in COST. GoalVest Advisory LLC increased its stake in shares of Costco Wholesale by 8.5% during the third quarter. GoalVest Advisory LLC now owns 512 shares of the retailer's stock valued at $448,000 after buying an additional 40 shares during the period. Global Wealth Strategies & Associates increased its holdings in Costco Wholesale by 9.7% in the 3rd quarter. Global Wealth Strategies & Associates now owns 508 shares of the retailer's stock worth $462,000 after buying an additional 45 shares in the last quarter. Versant Capital Management Inc raised its stake in Costco Wholesale by 45.6% during the 3rd quarter. Versant Capital Management Inc now owns 2,288 shares of the retailer's stock valued at $2,083,000 after buying an additional 717 shares during the last quarter. Defender Capital LLC. boosted its holdings in shares of Costco Wholesale by 0.5% in the third quarter. Defender Capital LLC. now owns 11,555 shares of the retailer's stock worth $10,519,000 after buying an additional 55 shares during the last quarter. Finally, First Financial Bank Trust Division raised its holdings in Costco Wholesale by 463.5% in the 3rd quarter. First Financial Bank Trust Division now owns 2,040 shares of the retailer's stock worth $1,857,000 after purchasing an additional 1,678 shares during the period. Institutional investors own 68.48% of the company's stock.

Insider Activity

In other news, 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 value 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. This trade represents a 23.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.10% of the stock is owned by insiders.

Analyst Ratings Changes

A number of research firms recently weighed in on COST. Citigroup started coverage on shares of Costco Wholesale in a research note on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 target price on the stock. HSBC upgraded Costco Wholesale to a "buy" rating in a research report on Friday, September 25th. Bank of America decreased their target price on Costco Wholesale from $1,200.00 to $1,095.00 and set a "buy" rating on the stock in a research note on Wednesday, September 16th. Oppenheimer reissued an "outperform" rating and issued a $1,160.00 price target on shares of Costco Wholesale in a report on Wednesday, September 16th. Finally, Evercore reaffirmed an "outperform" rating on shares of Costco Wholesale in a report on Tuesday, September 22nd. Twenty-two equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Costco Wholesale presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,046.27.

Costco Wholesale Price Performance

Shares of NASDAQ COST traded up $5.71 during midday trading on Friday, reaching $920.65. 2,018,948 shares of the stock traded hands, compared to its average volume of 2,201,015. The company's 50 day moving average is $933.05 and its 200 day moving average is $965.29. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. The stock has a market capitalization of $408.29 billion, a PE ratio of 44.35, a P/E/G ratio of 3.89 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating the consensus estimate of $6.54 by $0.21. The business had revenue of $95.72 billion during 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 quarterly revenue was up 11.1% compared to the same quarter last year. During the same quarter last year, the business earned $5.87 earnings per share. On average, equities research analysts anticipate that Costco Wholesale Corporation will post 22.86 earnings per share for the current year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were given a dividend of $1.47 per share. The ex-dividend date was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's dividend payout ratio is 28.32%.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco’s gasoline, pharmacy, travel and other ancillary businesses are increasing customer engagement and expanding its share of members’ wallets. These services may support recurring revenue, traffic and margins beyond merchandise sales. Costco's Ancillary Businesses Expand Share-of-Wallet Opportunity
• Positive Sentiment: Costco continues to pressure traditional grocers through competitive pricing, fresh-food offerings, e-commerce and strong value perception. Growing market share could help sustain sales and membership growth. Has Costco Become Grocery’s Biggest Threat?
• Positive Sentiment: Costco and SCAN Health Plan launched the company’s first Medicare Advantage plans in California and Nevada. The initiative adds another potential member benefit and could create a new avenue for customer engagement, although its financial contribution is not yet clear. SCAN and Costco Launch Medicare Advantage Plans
• Positive Sentiment: New and converted Business Center locations, including projects in Texas and Kansas City, should expand Costco’s commercial customer base and warehouse footprint over time. Costco Business Center Expansion
• Neutral Sentiment: Higher fuel prices contributed roughly three percentage points to fiscal fourth-quarter sales growth. While this boosts reported revenue, it reflects higher prices rather than stronger gasoline volume, making the underlying growth rate less impressive. Is One Number Reason Enough to Sell Costco Stock?
• Negative Sentiment: Rising fuel, freight, supplier and merchandise costs could pressure Costco’s already-thin margins. Investors are watching whether the company absorbs the increases to preserve its value proposition or passes them to customers at the risk of slowing demand. Can Costco Absorb Rising Costs?
• Negative Sentiment: Costco’s premium valuation leaves limited room for disappointment. Commentary questioning whether its growth justifies the high earnings multiple may restrain further gains even as the company’s operating performance remains solid.
• Negative Sentiment: Executive Vice President Claudine Adamo sold 2,200 shares worth approximately $2.02 million, reducing her direct holdings by 23.57%. The transaction does not change Costco’s fundamentals but may weigh modestly on sentiment. Costco Insider Share Sale

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.

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