Costco Wholesale Corporation $COST Stock Sold by Convergence Financial LLC

Key Points

• Convergence Financial LLC cut its Costco stake by 50.3% in the third quarter, selling 2,677 shares and retaining 2,649 shares valued at approximately $2.4 million.
• Despite the sale, major institutions increased their positions, and institutional investors collectively own 68.48% of Costco’s stock.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and an average price target of $1,086.19; Costco also exceeded quarterly earnings and revenue expectations.

Convergence Financial LLC lowered its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 50.3% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,649 shares of the retailer's stock after selling 2,677 shares during the quarter. Convergence Financial LLC's holdings in Costco Wholesale were worth $2,411,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. State Street Corp boosted its holdings in shares of Costco Wholesale by 31.7% in the second quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock worth $22,359,224,000 after buying an additional 5,749,362 shares during the period. Bank of America Corp DE increased its position in shares of 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 worth $7,488,203,000 after acquiring an additional 773,651 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised 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 acquiring an additional 160,893 shares during the period. Amundi raised its holdings in shares of Costco Wholesale by 11.1% during the first quarter. Amundi now owns 2,839,016 shares of the retailer's stock valued at $2,828,881,000 after acquiring an additional 283,360 shares during the period. Finally, Ascentis Wealth Management LLC raised its holdings in shares of 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 valued at $2,549,616,000 after acquiring an additional 2,497,652 shares during the period. Institutional investors and hedge funds own 68.48% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. TD Cowen restated a "buy" rating on shares of Costco Wholesale in a research report on Friday, September 25th. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Costco Wholesale from $1,091.00 to $1,079.00 and set a "buy" rating on the stock in a research report on Monday, September 28th. Mizuho cut their target price on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating on the stock in a research note on Friday, September 25th. Royal Bank Of Canada restated a "sector perform" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a report on Friday, October 9th. Finally, Roth Capital restated a "sell" rating and issued a $781.00 target price on shares of Costco Wholesale in a report on Friday, September 25th. Twenty-five equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $1,086.19.

Insider Activity at Costco Wholesale

In other Costco Wholesale news, 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 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 sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the business'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 represents a 26.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is currently owned by corporate insiders.

Costco Wholesale Price Performance

Shares of COST opened at $982.73 on Thursday. The company has a market capitalization of $435.48 billion, a price-to-earnings ratio of 47.34, a P/E/G ratio of 4.29 and a beta of 0.88. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. 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's 50-day moving average is $940.95 and its 200-day moving average is $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, topping 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 net margin of 3.04% and a return on equity of 27.60%. The firm's revenue was up 11.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.87 earnings per share. Equities research analysts expect that Costco Wholesale Corporation will post 22.70 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

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

Key Costco Wholesale News

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.

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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