Costco Wholesale Corporation $COST Stock Holdings Reduced by Hosking Partners LLP

Key Points

• Hosking Partners reduced its Costco position by 9.5%, selling 5,568 shares and retaining 53,160 shares valued at approximately $48.4 million. Institutional investors collectively own 68.48% of Costco’s stock.
• Analysts maintain a broadly positive outlook, with 25 Buy ratings, eight Holds and one Sell rating; the consensus is a “Moderate Buy” with a price target of $1,086.19.
• Costco exceeded quarterly expectations with $6.75 in earnings per share and $95.72 billion in revenue, while declaring a quarterly dividend of $1.47 per share. However, its premium valuation and rising competitive pressure remain key risks.

Hosking Partners LLP trimmed its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 9.5% in the 3rd quarter, according to its most recent disclosure with the SEC. The firm owned 53,160 shares of the retailer's stock after selling 5,568 shares during the period. Costco Wholesale makes up about 1.7% of Hosking Partners LLP's holdings, making the stock its 18th largest holding. Hosking Partners LLP's holdings in Costco Wholesale were worth $48,394,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in COST. Bank of America Corp DE purchased a new stake in Costco Wholesale in the 2nd quarter valued at about $6,781,946,000. Diamant Asset Management Inc. lifted its position in Costco Wholesale by 99,278.0% in the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after buying an additional 6,720,130 shares during the last quarter. State Street Corp boosted its stake in Costco Wholesale by 31.7% during the second quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock worth $22,359,224,000 after buying an additional 5,749,362 shares during the period. Legal & General Group Plc purchased a new position in Costco Wholesale during the second quarter worth about $2,362,188,000. Finally, Ascentis Wealth Management LLC boosted its stake 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. Institutional investors and hedge funds own 68.48% of the company's stock.

Analysts Set New Price Targets

A number of research firms have commented on COST. Raymond James Financial decreased their price target on Costco Wholesale from $1,100.00 to $1,050.00 and set an "outperform" rating on the stock in a research note on Friday, September 25th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a research note on Friday, October 9th. Bank of America cut their price objective on Costco Wholesale from $1,200.00 to $1,095.00 and set a "buy" rating on the stock in a report on Wednesday, September 16th. Evercore reissued an "outperform" rating on shares of Costco Wholesale in a research note on Tuesday, September 22nd. Finally, Robert W. Baird set a $1,175.00 target price on Costco Wholesale in a research note on Friday, September 25th. Twenty-five equities research 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. According to MarketBeat.com, Costco Wholesale has a consensus rating of "Moderate Buy" and a consensus price target of $1,086.19.

Costco Wholesale Price Performance

COST stock opened at $1,018.21 on Friday. The business's 50-day moving average is $937.12 and its two-hundred day moving average is $962.93. 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 firm has a market capitalization of $451.20 billion, a P/E ratio of 49.05, a P/E/G ratio of 4.27 and a beta of 0.88. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping analysts' consensus estimates of $6.54 by $0.21. The business had revenue of $95.72 billion during the quarter, compared to the consensus estimate 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 for the quarter was up 11.1% on a year-over-year basis. During the same period in the previous year, the company posted $5.87 earnings per share. Analysts anticipate that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be issued a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date is Friday, October 30th. Costco Wholesale's payout ratio is 28.32%.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Analyst optimism: Tigress Financial raised its price target to $1,250, while CICC initiated coverage with an “outperform” rating. These actions reinforce the bullish view that Costco’s membership income, sales growth and customer loyalty can support further gains. Tigress Financial raises target for Costco Wholesale stock
• Positive Sentiment: Long-term performance and growth potential: A retrospective analysis said $1,000 invested in Costco 10 years ago would have grown to $8,018, substantially outperforming the S&P 500. Another report highlighted potential upside surprises, including continued membership growth and resilient consumer demand. Costco Turned $1,000 Into $8,018
• Positive Sentiment: Potential stock split: Costco’s CEO said a stock split is regularly discussed by the board. No split was announced, but speculation could improve accessibility for employees and smaller investors following the stock’s strong appreciation. Costco's Last Stock Split Was in 2000
• Neutral Sentiment: Valuation remains a concern: Costco trades at the highest earnings multiple among several major retailers, despite having a relatively low operating margin. Its premium valuation leaves less room for disappointment if growth or membership trends slow. Are You Overpaying For Costco Stock Versus Its Rivals?
• Negative Sentiment: Competitive pressure is increasing: Kroger plans to spend $5 billion on lower prices and technology after acknowledging market-share losses to Walmart and Costco. More aggressive grocery pricing could pressure Costco’s traffic, margins or competitive advantage. Kroger Is Spending $5 Billion to Cut Prices

Insider Activity at Costco Wholesale

In other news, EVP Claudine Adamo sold 2,200 shares of the firm's stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total value of $2,015,046.00. Following the sale, the executive vice president directly owned 7,134 shares in the company, valued at approximately $6,534,244.62. This trade represents a 23.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP William Richard Wilcox sold 1,100 shares of Costco Wholesale stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the sale, the executive vice president directly owned 3,094 shares of the company's stock, valued at approximately $2,964,701.74. This trade represents a 26.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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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