Costco Wholesale Corporation $COST Stock Sold by Arrow Financial Corp

Key Points

• Arrow Financial reduced its Costco stake by 33.4% in the third quarter, selling 1,135 shares and retaining 2,260 shares valued at approximately $2.06 million. Institutional investors overall own 68.48% of Costco.
• Analyst sentiment remains positive but mixed: Costco has a “Moderate Buy” consensus rating from 34 analysts, with an average price target of $1,086.19, although several firms recently lowered their targets.
• Costco exceeded quarterly expectations, reporting $6.75 in EPS and $95.72 billion in revenue, while sales grew 11.1% year over year. Shares traded near $982.73, but the stock’s elevated valuation and low 0.6% dividend yield remain potential concerns.

Arrow Financial Corp lessened its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 33.4% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,260 shares of the retailer's stock after selling 1,135 shares during the quarter. Arrow Financial Corp's holdings in Costco Wholesale were worth $2,057,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in COST. State Street Corp lifted its holdings in shares of Costco Wholesale by 31.7% in the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock worth $22,359,224,000 after acquiring an additional 5,749,362 shares during the last quarter. Bank of America Corp DE raised its position in Costco Wholesale by 11.5% in the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock valued at $7,488,203,000 after purchasing an additional 773,651 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Costco Wholesale by 5.5% during the second 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 purchasing an additional 160,893 shares in the last quarter. Amundi lifted its stake in Costco Wholesale by 11.1% during the first quarter. Amundi now owns 2,839,016 shares of the retailer's stock worth $2,828,881,000 after purchasing an additional 283,360 shares in the last quarter. Finally, Ascentis Wealth Management LLC lifted 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 purchasing an additional 2,497,652 shares in the last quarter. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on COST shares. Truist Financial lowered their price target on Costco Wholesale from $1,011.00 to $955.00 and set a "hold" rating for the company in a research report on Friday, September 25th. Robert W. Baird set a $1,175.00 price objective on Costco Wholesale in a report on Friday, September 25th. Raymond James Financial decreased their target price 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. JPMorgan Chase & Co. decreased their target price on 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. Finally, Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a research note on Monday, September 28th. Twenty-five analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $1,086.19.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco expanded its healthcare offering through a NationsBenefits partnership, allowing members to redeem eligible benefits in real time at checkout across more than 600 U.S. warehouses. The initiative could increase member engagement, convenience and store traffic while supporting Costco’s growing healthcare business. Costco brings real-time health benefit checkouts to more than 600 stores
• Positive Sentiment: The retailer opened a new warehouse in Western New York, adding capacity and reinforcing its long-term strategy of expanding its membership base and geographic footprint. Costco opens its doors in Western New York
• Positive Sentiment: Recent coverage highlights Costco’s fifth consecutive earnings beat, strong pharmacy growth and improving digital conversions, including gains from AI-powered website search. Analysts also point to improving technical momentum heading into November. Costco momentum is improving heading into November
• Neutral Sentiment: Promotional offers providing new Gold Star members with a $45 digital Costco Shop Card for a $65 membership may help attract sign-ups, although the near-term effect on revenue and margins is unclear. New Costco Gold Star membership promotion
• Neutral Sentiment: Long-term investment commentary remains broadly bullish, with Costco viewed as a defensive compounder and a potential healthcare or Medicare disrupter. However, these are forward-looking theses rather than new financial guidance.
• Negative Sentiment: Analysts continue to question Costco’s valuation near $1,000 per share, arguing that its premium multiple already reflects substantial growth. Expensive valuation and mixed macroeconomic conditions could pressure the stock if sales or margins merely meet expectations. Costco valuation remains a head scratcher
• Negative Sentiment: Exchange-traded funds were reported as net sellers of COST, creating modest technical pressure. Separately, Costco withdrew an application for a proposed Idaho warehouse, highlighting that expansion plans can face local or regulatory setbacks. Costco sees net ETF selling
• Negative Sentiment: The upcoming $1.47 dividend offers a relatively low yield at Costco’s current share price, limiting its appeal to income-focused investors and reducing support from dividend-driven buying.

Costco Wholesale Trading Down 0.9%

COST opened at $982.73 on Thursday. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The stock has a market capitalization of $435.48 billion, a price-to-earnings ratio of 47.34, a PEG ratio of 4.29 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 business has a fifty day moving average price of $940.95 and a 200 day moving average price of $969.55.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.54 by $0.21. The company had revenue of $95.72 billion for 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 revenue for the quarter was up 11.1% compared to the same quarter last year. During the same quarter last year, the company earned $5.87 EPS. Sell-side analysts expect that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

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

Insider Activity at Costco Wholesale

In other Costco Wholesale news, EVP William Richard Wilcox sold 1,100 shares of the business'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 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. The trade was a 26.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total transaction 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.10% of the company's stock.

Costco Wholesale Profile

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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