Costco Wholesale Corporation $COST Stock Sold by Birch Hill Investment Advisors LLC

Key Points

• Birch Hill Investment Advisors reduced its Costco stake by 7.5%, selling 2,612 shares and retaining 32,250 shares valued at approximately $29.4 million. Other major institutions increased their positions, and institutional investors collectively own 68.48% of Costco.
• Costco reported strong quarterly results, with EPS of $6.75 beating estimates and revenue rising 11.1% year over year to $95.72 billion. September net sales also grew 13%, while digitally enabled sales increased 19%.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $1,087.40, but Costco’s elevated valuation and macroeconomic risks remain concerns. The company also declared a quarterly dividend of $1.47 per share, representing a 0.6% yield.

Birch Hill Investment Advisors LLC trimmed its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 7.5% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 32,250 shares of the retailer's stock after selling 2,612 shares during the period. Costco Wholesale accounts for about 1.3% of Birch Hill Investment Advisors LLC's holdings, making the stock its 25th biggest holding. Birch Hill Investment Advisors LLC's holdings in Costco Wholesale were worth $29,358,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently made changes to their positions in COST. State Street Corp boosted its position in Costco Wholesale by 31.7% in 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 last quarter. Bank of America Corp DE lifted its stake in Costco Wholesale by 11.5% during the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock worth $7,488,203,000 after purchasing an additional 773,651 shares during the last quarter. Diamant Asset Management Inc. boosted its holdings in shares of Costco Wholesale by 99,278.0% in the 1st 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 period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of 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 valued at $2,870,314,000 after purchasing an additional 160,893 shares during the last quarter. Finally, Amundi grew its stake in Costco Wholesale by 11.1% during 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 last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Key Stories Impacting Costco Wholesale

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

Costco Wholesale Price Performance

NASDAQ COST opened at $989.11 on Monday. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50. The stock has a market capitalization of $438.30 billion, a PE ratio of 47.64, a P/E/G ratio of 4.23 and a beta of 0.88. The stock has a 50-day simple moving average of $933.15 and a 200 day simple moving average of $963.04. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06.

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 (EPS) for the quarter, topping the consensus estimate 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 company posted $5.87 earnings per share. Costco Wholesale's quarterly revenue was up 11.1% on a year-over-year basis. Research analysts anticipate that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Stockholders 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 dividend yield of 0.6%. The ex-dividend date of this dividend is Friday, October 30th. Costco Wholesale's dividend payout ratio (DPR) is presently 28.32%.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. UBS Group restated a "buy" rating on shares of Costco Wholesale in a research note on Thursday, September 17th. Roth Capital reiterated a "sell" rating and set a $781.00 price objective on shares of Costco Wholesale in a research report on Friday, September 25th. Mizuho reduced 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. Truist Financial decreased their price objective 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. Finally, TD Cowen reaffirmed a "buy" rating on shares of Costco Wholesale in a research note 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 stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $1,087.40.

Insider Buying and Selling at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the business'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 owned 7,134 shares of the company's stock, valued at $6,534,244.62. The trade was a 23.57% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction dated 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 directly owned 3,094 shares of the company's stock, valued at $2,964,701.74. This trade represents a 26.23% decrease in their position. 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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