Costco Wholesale Corporation $COST Stock: TD Waterhouse Canada Inc. Grows Holdings

Key Points

• Institutional ownership increased: TD Waterhouse Canada raised its Costco stake by 1.8% to 339,113 shares, while other major investors also expanded positions. Institutions collectively owned 68.48% of the stock.
• Costco delivered strong results: Quarterly revenue rose 11.1% year over year to $95.72 billion, exceeding estimates, while EPS of $6.75 beat expectations by $0.21.
• Analysts remain generally bullish, but valuation is elevated: Costco has a consensus “Moderate Buy” rating and an average price target of $1,087.40. The stock trades at roughly 47.6 times earnings, and the company declared a quarterly dividend of $1.47 per share, yielding about 0.6%.

TD Waterhouse Canada Inc. raised its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1.8% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 339,113 shares of the retailer's stock after purchasing an additional 6,091 shares during the period. TD Waterhouse Canada Inc. owned 0.08% of Costco Wholesale worth $284,203,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Bank of America Corp DE acquired a new stake in shares of Costco Wholesale during the 2nd quarter worth about $6,781,946,000. Diamant Asset Management Inc. boosted its holdings in shares of Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock worth $672,690,000 after buying an additional 6,720,130 shares during the period. State Street Corp boosted its holdings in shares of Costco Wholesale by 31.7% during the 2nd 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. Legal & General Group Plc acquired a new position in Costco Wholesale in the 2nd quarter valued at about $2,362,188,000. Finally, Ascentis Wealth Management LLC grew its stake 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 valued at $2,549,616,000 after buying an additional 2,497,652 shares during the last quarter. 68.48% of the stock is owned by institutional investors.

Costco Wholesale Stock Up 1.1%

COST opened at $989.11 on Friday. 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 quick ratio of 0.62 and a current ratio of 1.06. The company has a market capitalization of $438.30 billion, a P/E ratio of 47.64, a P/E/G ratio of 4.23 and a beta of 0.88. The stock has a fifty day moving average of $933.15 and a 200-day moving average of $963.28.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its 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. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The company had revenue of $95.72 billion during the quarter, compared to analysts' expectations of $94.97 billion. During the same quarter in the previous year, the business posted $5.87 earnings per share. Costco Wholesale's quarterly revenue was up 11.1% on a year-over-year basis. On average, equities analysts expect that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be given 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 of this dividend is Friday, October 30th. Costco Wholesale's dividend payout ratio (DPR) is currently 28.32%.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on COST. Tigress Financial increased their price target on shares of Costco Wholesale from $1,065.00 to $1,250.00 and gave the company a "buy" rating in a report on Thursday. BTIG Research restated a "buy" rating and set a $1,125.00 price objective on shares of Costco Wholesale in a research report on Wednesday, September 23rd. UBS Group restated a "buy" rating on shares of Costco Wholesale in a report on Thursday, September 17th. Robert W. Baird set a $1,175.00 price objective on Costco Wholesale in a report on Friday, September 25th. Finally, Wells Fargo & Company decreased their target price on Costco Wholesale from $1,000.00 to $950.00 and set an "equal weight" rating on the stock in a research report on Friday, September 25th. Twenty-four analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $1,087.40.

Costco Wholesale News Roundup

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

Insider Activity

In other Costco Wholesale news, EVP William Richard Wilcox sold 1,100 shares of Costco Wholesale stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total value of $1,054,031.00. Following the completion of the sale, 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Claudine Adamo sold 2,200 shares of the business's stock in a transaction dated 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 $6,534,244.62. This represents a 23.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is owned by insiders.

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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