Costco Wholesale Corporation $COST Stock Sold by Violich Capital Management Inc.

Key Points

• Violich Capital Management reduced its Costco stake by 3.5%, selling 1,614 shares and retaining 45,120 shares valued at approximately $41.1 million. Institutional investors collectively own 68.48% of Costco.
• Costco reported quarterly adjusted earnings of $6.75 per share and revenue of $95.72 billion, surpassing analyst expectations; revenue increased 11.1% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $1,046.27.
• Costco’s ancillary services and expansion plans support growth, but investors face risks from rising operating costs and the company’s premium valuation. The stock traded near $920.65, while an executive also sold approximately $2.02 million in shares.

Violich Capital Management Inc. reduced its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 3.5% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 45,120 shares of the retailer's stock after selling 1,614 shares during the period. Costco Wholesale accounts for about 4.5% of Violich Capital Management Inc.'s holdings, making the stock its 6th biggest position. Violich Capital Management Inc.'s holdings in Costco Wholesale were worth $41,075,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Sarasin & Partners LLP lifted its position in shares of Costco Wholesale by 6.9% in the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer's stock worth $200,372,000 after purchasing an additional 13,795 shares during the period. Perryman Financial Advisory Inc. AD purchased a new position in shares of Costco Wholesale during the fourth quarter valued at about $9,300,000. Nissay Asset Management Corp Japan raised its stake in Costco Wholesale by 4.1% in the second quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer's stock worth $148,193,000 after buying an additional 6,200 shares in the last quarter. Hyperion Asset Management Ltd raised its stake in Costco Wholesale by 9.0% in the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer's stock worth $64,325,000 after buying an additional 5,656 shares in the last quarter. Finally, Concurrent Investment Advisors LLC lifted its holdings in Costco Wholesale by 15.0% in the second quarter. Concurrent Investment Advisors LLC now owns 22,766 shares of the retailer's stock worth $21,297,000 after buying an additional 2,974 shares during the period. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $920.65 on Monday. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. The stock has a fifty day simple moving average of $932.76 and a two-hundred day simple moving average of $964.72. 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 $408.29 billion, a price-to-earnings ratio of 44.35, a PEG ratio of 3.93 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping analysts' consensus estimates of $6.54 by $0.21. The firm had revenue of $95.72 billion for the quarter, compared to analysts' expectations of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%.The company's quarterly revenue was up 11.1% on a year-over-year basis. During the same period in the prior year, the firm posted $5.87 earnings per share. On average, research analysts anticipate that Costco Wholesale Corporation will post 22.86 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were paid a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale's dividend payout ratio (DPR) is currently 28.32%.

Insiders Place Their Bets

In related news, EVP Claudine Adamo sold 2,200 shares of the firm'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 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.10% of the company's stock.

Analysts Set New Price Targets

Several research firms have weighed in on COST. HSBC raised Costco Wholesale to a "buy" rating in a research report on Friday, September 25th. JPMorgan Chase & Co. lowered their target price on Costco Wholesale from $1,100.00 to $1,015.00 and set an "overweight" rating for the company in a research note on Friday, September 25th. Raymond James Financial dropped their price target on Costco Wholesale from $1,100.00 to $1,050.00 and set an "outperform" rating on the stock in a research report on Friday, September 25th. Deutsche Bank Aktiengesellschaft reduced their price target on Costco Wholesale from $1,091.00 to $1,079.00 and set a "buy" rating on the stock in a research note on Monday, September 28th. Finally, Robert W. Baird set a $1,175.00 price objective on Costco Wholesale in a report on Friday, September 25th. Twenty-two investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Costco Wholesale has an average rating of "Moderate Buy" and an average target price of $1,046.27.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco’s gasoline, pharmacy, travel and other ancillary businesses are increasing customer engagement and expanding its share of members’ wallets. These services may support recurring revenue, traffic and margins beyond merchandise sales. Costco's Ancillary Businesses Expand Share-of-Wallet Opportunity
• Positive Sentiment: Costco continues to pressure traditional grocers through competitive pricing, fresh-food offerings, e-commerce and strong value perception. Growing market share could help sustain sales and membership growth. Has Costco Become Grocery’s Biggest Threat?
• Positive Sentiment: Costco and SCAN Health Plan launched the company’s first Medicare Advantage plans in California and Nevada. The initiative adds another potential member benefit and could create a new avenue for customer engagement, although its financial contribution is not yet clear. SCAN and Costco Launch Medicare Advantage Plans
• Positive Sentiment: New and converted Business Center locations, including projects in Texas and Kansas City, should expand Costco’s commercial customer base and warehouse footprint over time. Costco Business Center Expansion
• Neutral Sentiment: Higher fuel prices contributed roughly three percentage points to fiscal fourth-quarter sales growth. While this boosts reported revenue, it reflects higher prices rather than stronger gasoline volume, making the underlying growth rate less impressive. Is One Number Reason Enough to Sell Costco Stock?
• Negative Sentiment: Rising fuel, freight, supplier and merchandise costs could pressure Costco’s already-thin margins. Investors are watching whether the company absorbs the increases to preserve its value proposition or passes them to customers at the risk of slowing demand. Can Costco Absorb Rising Costs?
• Negative Sentiment: Costco’s premium valuation leaves limited room for disappointment. Commentary questioning whether its growth justifies the high earnings multiple may restrain further gains even as the company’s operating performance remains solid.
• Negative Sentiment: Executive Vice President Claudine Adamo sold 2,200 shares worth approximately $2.02 million, reducing her direct holdings by 23.57%. The transaction does not change Costco’s fundamentals but may weigh modestly on sentiment. Costco Insider Share Sale

Costco Wholesale Profile

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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