Costco Wholesale Corporation $COST Stock: Prairie Advisory LLC Increases Holdings

Key Points

• Prairie Advisory LLC nearly doubled its Costco stake during the third quarter, adding 2,098 shares to own 4,216 shares valued at approximately $3.84 million. Institutional investors collectively own 68.48% of the company.
• Costco reported strong quarterly results, with revenue up 11.1% year over year to $95.72 billion and earnings of $6.75 per share, beating analyst expectations. September sales also reportedly rose 13% year over year.
• Valuation remains a concern: the stock trades near 48 times earnings, while analysts maintain a “Moderate Buy” consensus with an average price target of $1,087.40. Costco also declared a quarterly dividend of $1.47 per share, representing a yield of about 0.6%.

Prairie Advisory LLC increased its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 99.1% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 4,216 shares of the retailer's stock after buying an additional 2,098 shares during the quarter. Prairie Advisory LLC's holdings in Costco Wholesale were worth $3,838,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Wealth Effects LLC raised its stake in Costco Wholesale by 1.2% during the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock valued at $871,000 after acquiring an additional 10 shares during the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. grew its stake in shares of Costco Wholesale by 1.8% in the 1st quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock valued at $549,000 after purchasing an additional 10 shares during the last quarter. First National Bank of Hutchinson grew its stake in shares of Costco Wholesale by 0.9% in 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 last quarter. Frisch Financial Group Inc. grew its stake in shares of Costco Wholesale by 1.0% in 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 last quarter. Finally, Main Street Group LTD increased its holdings in shares of Costco Wholesale by 0.8% in the first quarter. Main Street Group LTD now owns 1,226 shares of the retailer's stock valued at $1,221,000 after purchasing an additional 10 shares during the period. 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 is reportedly adding a $2.99 sweet treat to its food-court menu. While financially modest, the low-priced offering could reinforce the company’s value proposition and drive additional customer traffic. Costco adds a $2.99 food-court treat
• Positive Sentiment: Recent sales momentum remains a key support for COST, with September sales reportedly increasing 13% year over year. The growth highlights continued customer demand despite broader concerns about retail spending. Costco valuation and sales growth
• Positive Sentiment: Costco is scheduled to pay a quarterly dividend of $1.47 per share on Nov. 13. Although its approximately 0.6% yield is low, regular and occasional special dividends add to the long-term shareholder return case. Costco dividend analysis
• Neutral Sentiment: Costco continues expanding its warehouse footprint, including a 152,000-square-foot location with a 32-pump gas station scheduled to open in November. The project offers incremental growth potential, though its near-term earnings effect is likely limited. New Costco warehouse opening
• Neutral Sentiment: Analyses comparing Costco with Walmart emphasize Costco’s stronger competitive moat and recent relative performance, but also frame the stock as a long-term quality investment rather than a clear short-term bargain. Costco versus Walmart comparison
• Negative Sentiment: Truist analyst Scot Ciccarelli reaffirmed a Hold rating and a $955 price target, indicating limited upside after Costco’s strong run. The target is below recent trading levels, reinforcing valuation concerns. Truist Costco rating
• Negative Sentiment: Costco trades at a demanding valuation—roughly 48 times earnings—despite its strong sales growth. Rising prices for oil and protein could also pressure margins or merchandise affordability, increasing the risk of investor disappointment. Costco price tracker and inflation

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Royal Bank Of Canada restated a "sector perform" rating and set a $1,000.00 price target on shares of Costco Wholesale in a research note on Friday, October 9th. TD Cowen reaffirmed a "buy" rating on shares of Costco Wholesale in a report on Friday, September 25th. Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a research report on Monday, September 28th. Roth Capital reiterated a "sell" rating and issued a $781.00 price objective on shares of Costco Wholesale in a research report on Friday, September 25th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Costco Wholesale from $1,100.00 to $1,015.00 and set an "overweight" rating on the stock in a research note on Friday, September 25th. Twenty-four equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Costco Wholesale presently has a consensus rating of "Moderate Buy" and an average target price of $1,087.40.

Costco Wholesale Trading Up 0.6%

NASDAQ COST opened at $995.53 on Tuesday. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $441.15 billion, a P/E ratio of 47.95, a P/E/G ratio of 4.23 and a beta of 0.88. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The firm has a 50-day moving average price of $934.01 and a 200 day moving average price of $963.03.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating analysts' consensus estimates of $6.54 by $0.21. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The company had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. During the same quarter in the previous year, the company earned $5.87 EPS. The firm's revenue for the quarter was up 11.1% compared to the same quarter last year. Equities research analysts expect that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Announces Dividend

The firm also recently announced 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. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Friday, October 30th. Costco Wholesale's dividend payout ratio is 28.32%.

Insider Buying and Selling

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 filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the firm's stock in a transaction that occurred 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 sale, the executive vice president directly owned 3,094 shares of the company's stock, valued at $2,964,701.74. This represents a 26.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate 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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