Costco Wholesale Corporation $COST Stock: Jefferies Financial Group Inc. Grows Position

Key Points

• Jefferies Financial Group increased its Costco stake by 54.3% in the third quarter, adding 29,706 shares to bring its holdings to 84,382 shares, valued at about $76.8 million. Institutional investors and hedge funds collectively own 68.48% of Costco.
• Costco reported quarterly earnings of $6.75 per share and revenue of $95.72 billion, beating analyst estimates; revenue grew 11.1% year over year. The company also declared a special dividend of $30 per share.
• Analyst sentiment is broadly positive, with a MarketBeat average rating of “Moderate Buy” and an average price target of $1,092.23, but some analysts cite Costco’s high valuation as a risk.

Jefferies Financial Group Inc. raised its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 54.3% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 84,382 shares of the retailer's stock after purchasing an additional 29,706 shares during the period. Costco Wholesale accounts for 0.6% of Jefferies Financial Group Inc.'s portfolio, making the stock its 15th largest position. Jefferies Financial Group Inc.'s holdings in Costco Wholesale were worth $76,816,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. State Street Corp grew its stake 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 valued at $22,359,224,000 after buying an additional 5,749,362 shares during the period. Bank of America Corp DE increased its holdings in shares of Costco Wholesale by 11.5% during the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock worth $7,488,203,000 after buying an additional 773,651 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Costco Wholesale by 5.5% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,068,312 shares of the retailer's stock worth $2,870,314,000 after buying an additional 160,893 shares during the last quarter. Amundi raised its position in shares of Costco Wholesale by 11.1% in the 1st quarter. Amundi now owns 2,839,016 shares of the retailer's stock worth $2,828,881,000 after buying an additional 283,360 shares during the period. Finally, Ascentis Wealth Management LLC raised its position in shares of Costco Wholesale by 103,637.0% in the 2nd 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.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on COST shares. BTIG Research reiterated a "buy" rating and issued a $1,125.00 target price on shares of Costco Wholesale in a report on Wednesday, September 23rd. Argus restated a "buy" rating and set a $1,230.00 price target on shares of Costco Wholesale in a research note on Monday, September 28th. Oppenheimer restated an "outperform" rating and set a $1,160.00 price target on shares of Costco Wholesale in a research note on Wednesday, September 16th. CICC Research initiated coverage on Costco Wholesale in a report on Wednesday, October 21st. They issued an "outperform" rating and a $1,050.00 price objective on the stock. Finally, DA Davidson lifted their price objective on Costco Wholesale from $1,000.00 to $1,040.00 and gave the company a "neutral" rating in a research note on Friday, September 25th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $1,092.23.

Costco Wholesale Price Performance

COST opened at $1,087.61 on Thursday. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a 50 day moving average of $960.23 and a two-hundred day moving average of $973.88. The company has a market cap of $481.95 billion, a P/E ratio of 52.39, a P/E/G ratio of 4.71 and a beta of 0.85. 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 (NASDAQ:COST - Get Free Report) last issued its earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating analysts' consensus estimates 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 the consensus estimate of $94.97 billion. During the same quarter last year, the firm posted $5.87 EPS. The business's revenue for the quarter was up 11.1% compared to the same quarter last year. On average, analysts expect that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The firm also recently declared a special dividend, which will be paid on Friday, December 4th. Investors of record on Tuesday, November 24th will be given a dividend of $30.00 per share. The ex-dividend date of this dividend is Tuesday, November 24th. Costco Wholesale's dividend payout ratio is 28.32%.

Insiders Place Their Bets

In related news, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction 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 in the company, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of the firm's stock in a transaction dated 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 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 SEC filing for this sale provides additional information. 0.10% of the stock is currently owned by corporate insiders.

Key Costco Wholesale News

Investors following COST have been watching these news items:

• Positive Sentiment: The board also reauthorized a $4 billion stock repurchase program, reinforcing Costco’s capital-return plans. Bernstein raised its price target to $1,155 from $1,143 and maintained an Outperform rating; Mizuho also raised its target following the announcements. Mizuho raises Costco price target
• Neutral Sentiment: Some analysts view Costco’s membership-based, value-focused business as relatively defensive amid uncertainty, which may appeal to investors seeking resilience. Costco as a defensive investment
• Negative Sentiment: Valuation is a counterweight: Freedom Broker downgraded Costco from Buy to Hold, citing the stock’s valuation. Other commentary also warns that the premium price leaves limited room for disappointment, so the special dividend alone may not justify buying at current levels. Freedom Broker downgrade

Costco Wholesale Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally low prices. Its products include groceries, fresh foods, appliances, electronics, apparel, furniture, and household goods, as well as its Kirkland Signature private-label line. The company also provides services such as gasoline stations, pharmacies, optical and hearing-aid centers, food courts, and travel offerings. Costco serves members through warehouses and online channels.

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