Costco Wholesale Corporation $COST Stock Sold by Commonwealth Financial Services LLC

Key Points

• Commonwealth Financial Services cut its Costco stake by 44% in the third quarter, selling 2,315 shares and retaining 2,949 shares valued at approximately $2.69 million. Institutional investors and hedge funds still own 68.48% of Costco’s outstanding stock.
• Costco reported quarterly earnings of $6.75 per share, beating estimates, while revenue rose 11.1% year over year to $95.72 billion. The company also declared a quarterly dividend of $1.47 per share, equivalent to a 0.6% yield.
• Analysts maintain a broadly positive outlook, with 25 Buy ratings and a consensus target price of $1,087.40, but Costco’s valuation remains a concern at roughly 49 times earnings; Truist rates the stock Hold with a $955 target.

Commonwealth Financial Services LLC reduced its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 44.0% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,949 shares of the retailer's stock after selling 2,315 shares during the quarter. Commonwealth Financial Services LLC's holdings in Costco Wholesale were worth $2,685,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Bank of America Corp DE acquired a new stake in shares of Costco Wholesale during the second quarter worth $6,781,946,000. Diamant Asset Management Inc. lifted its position in shares of Costco Wholesale by 99,278.0% in the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock worth $672,690,000 after purchasing an additional 6,720,130 shares in the last quarter. State Street Corp increased its stake 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 period. Legal & General Group Plc purchased a new stake in Costco Wholesale in the 2nd quarter worth approximately $2,362,188,000. Finally, Ascentis Wealth Management LLC lifted its position in 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 in the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale Trading Down 0.1%

Shares of NASDAQ COST opened at $994.61 on Wednesday. The business has a 50 day simple moving average of $935.01 and a 200 day simple moving average of $963.02. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50. The stock has a market cap of $440.74 billion, a price-to-earnings ratio of 48.68, a PEG ratio of 4.25 and a beta of 0.88. 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 issued its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating the consensus estimate of $6.54 by $0.21. The firm had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The company's revenue for the quarter was up 11.1% on a year-over-year basis. During the same quarter last year, the firm earned $5.87 earnings per share. On average, research analysts predict that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

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

Wall Street Analyst Weigh In

COST has been the subject of a number of research reports. DA Davidson lifted their target price on shares of 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. Truist Financial dropped their price target on shares of Costco Wholesale from $1,011.00 to $955.00 and set a "hold" rating on the stock in a research note on Friday, September 25th. TD Cowen reaffirmed a "buy" rating on shares of Costco Wholesale in a research note on Friday, September 25th. BTIG Research reiterated a "buy" rating and set a $1,125.00 price objective on shares of Costco Wholesale in a report on Wednesday, September 23rd. Finally, Royal Bank Of Canada reissued a "sector perform" rating and set a $1,000.00 price objective on shares of Costco Wholesale in a research report on Friday, October 9th. Twenty-five investment 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. According to MarketBeat, Costco Wholesale currently has an average rating of "Moderate Buy" and a consensus target price of $1,087.40.

Insider Buying and Selling at Costco Wholesale

In other news, EVP William Richard Wilcox sold 1,100 shares of the firm's stock in a transaction 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 transaction, the executive vice president owned 3,094 shares in the company, valued at approximately $2,964,701.74. This trade represents a 26.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Claudine Adamo sold 2,200 shares of Costco Wholesale stock in a transaction 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 of the company's stock, valued at approximately $6,534,244.62. The trade was a 23.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco’s low-price, high-volume model could benefit as inflation reaches 3.7% and shoppers become more focused on value. Its membership model and self-imposed markup discipline may help defend customer traffic and retention. Inflation Just Hit 3.7%: Here’s Why Walmart and Costco Could Be the Biggest Winners
• Positive Sentiment: Costco continues to show strong sales momentum, while faster delivery, AI-assisted shopping and digital partnerships are supporting online growth across the retail sector. These trends could help Costco broaden customer engagement beyond its warehouses. Walmart, Target and Costco Win Over Digital Shoppers With Speed
• Neutral Sentiment: International expansion remains a long-term opportunity: 292 of Costco’s 939 warehouses are outside the United States and Puerto Rico. However, overseas growth must generate enough recurring memberships to cover local investment and operating costs. Can Costco’s Membership Model Travel Further Overseas?
• Neutral Sentiment: Articles highlighting Costco’s customer loyalty, food-court offerings and tote-bag initiatives reinforce its value-oriented brand, but these developments are unlikely to materially change near-term earnings expectations. Costco Is One of the Best Retailers on the Planet
• Negative Sentiment: Walmart’s push toward $1 trillion in holiday sales highlights growing competitive pressure during the crucial shopping season. Investors may question whether Costco can maintain its sales momentum against Walmart’s broader assortment and digital reach. Costco Stock Flat as Walmart Aims at $1 Trillion Holiday Sales
• Negative Sentiment: Valuation remains the primary concern. Costco’s strong multiyear gains and roughly 49-times earnings multiple leave limited room for disappointment, while Truist maintained a Hold rating and a $955 price target below the current trading level. Why Truist Remains on the Sidelines on Costco Despite Sales Momentum

Costco Wholesale Company 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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