Costco Wholesale Corporation $COST Stock Purchased by Howard Capital Management LLC

Key Points

• Howard Capital Management increased its Costco stake by 6.9% in the third quarter, bringing its holdings to 43,285 shares valued at approximately $38.4 million. Institutional investors collectively own 68.48% of Costco’s stock.
• Costco reported strong operating results, with quarterly revenue up 11.1% year over year to $95.72 billion and EPS of $6.75, beating analyst expectations. September net sales also rose 13%, while digitally enabled sales increased 19%.
• Shares trade at a premium valuation, with a price-to-earnings ratio of 47.64, despite broad analyst support and a “Moderate Buy” consensus rating. Recent insider selling and risks from slower growth, inflation and higher interest rates remain potential concerns.

Howard Capital Management LLC grew its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 6.9% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 43,285 shares of the retailer's stock after buying an additional 2,780 shares during the quarter. Howard Capital Management LLC's holdings in Costco Wholesale were worth $38,447,000 at the end of the most recent quarter.

Several other large investors have also recently modified their holdings of the stock. Contravisory Investment Management Inc. grew its position in Costco Wholesale by 107.7% during the 3rd quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer's stock worth $25,000 after acquiring an additional 14 shares during the last quarter. C M Bidwell & Associates Ltd. purchased a new position in Costco Wholesale in the 2nd quarter worth approximately $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale in the 4th quarter worth approximately $27,000. Burk Holdings LLC bought a new stake in Costco Wholesale in the second quarter valued at approximately $30,000. Finally, Manning & Napier Advisors LLC bought a new stake in Costco Wholesale in the second quarter valued at approximately $30,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale News Summary

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

• Positive Sentiment: September sales accelerated: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results reinforce the strength of Costco’s membership model, e-commerce business and value-focused offering. September Sales Growth
• Positive Sentiment: Analyst support remains strong: Tigress Financial reiterated a Buy rating while setting a $1,065 price target after previously publicizing a higher $1,250 target. Other coverage highlights Costco’s sales growth, membership loyalty and digital gains, supporting the recent recovery above key moving averages. Tigress Financial Price Target
• Positive Sentiment: Dividend maintained: Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. While the approximately 0.6% yield is modest, the payment signals continued cash-flow strength. Costco Dividend Announcement
• Positive Sentiment: Expansion pipeline: Proposed warehouse projects in Macon and Oakland, along with a planned Merced County relocation, point to continued investment in Costco’s store network. Infrastructure financing of up to $30 million could support the Macon development. Macon Costco Project
• Neutral Sentiment: Costco’s fiscal 2027 executive bonus plan adds sustainability-related measures. The change may support long-term operational goals, but it is unlikely to materially affect near-term earnings. Costco Executive Bonus Update
• Negative Sentiment: Valuation and macro risks remain: Costco trades at a high earnings multiple, leaving the stock vulnerable if growth or membership trends slow. Persistent inflation and potentially higher interest rates could also pressure consumer spending and market valuations.
• Negative Sentiment: An executive sold 1,100 shares worth approximately $1.05 million. The transaction is relatively small compared with Costco’s market value, but it may add a modest cautionary signal for investors. Costco Insider Sale

Insider Activity at Costco Wholesale

In related news, 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 transaction of $1,054,031.00. Following the completion of the transaction, the executive vice president owned 3,094 shares in the company, valued at $2,964,701.74. This represents a 26.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Claudine Adamo sold 2,200 shares of the company's stock in a transaction that occurred 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 transaction, the executive vice president owned 7,134 shares of the company's stock, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The SEC filing for this sale provides additional information. 0.10% of the stock is currently owned by insiders.

Costco Wholesale Trading Up 1.1%

NASDAQ:COST traded up $11.10 during mid-day trading on Friday, reaching $989.11. 2,515,009 shares of the company's stock traded hands, compared to its average volume of 2,387,814. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The firm has a market capitalization of $438.30 billion, a price-to-earnings ratio of 47.64, a PEG ratio of 4.18 and a beta of 0.88. 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 company has a 50 day moving average price of $933.15 and a 200-day moving average price of $963.28.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly 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. The business had revenue of $95.72 billion during the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. Costco Wholesale's quarterly revenue was up 11.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $5.87 EPS. On average, sell-side analysts predict that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be given a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Friday, October 30th. Costco Wholesale's dividend payout ratio (DPR) is currently 28.32%.

Analyst Ratings Changes

A number of research firms have recently weighed in on COST. Evercore reissued an "outperform" rating on shares of Costco Wholesale in a research note on Tuesday, September 22nd. Weiss Ratings raised shares of Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Tigress Financial lifted their target price on shares of Costco Wholesale from $1,065.00 to $1,250.00 and gave the stock a "buy" rating in a research note on Thursday. BTIG Research reiterated a "buy" rating and set a $1,125.00 price target on shares of Costco Wholesale in a report on Wednesday, September 23rd. Finally, Mizuho dropped their price target on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating for the company in a research report on Friday, September 25th. Twenty-four equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,087.40.

About Costco Wholesale

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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