CWA Asset Management Group LLC Trims Stake in Costco Wholesale Corporation $COST

Key Points

• CWA Asset Management trimmed its stake in Costco by 3.4% to 34,618 shares (worth $29.85M), and institutional investors own about 68.48% of the stock.
• Costco beat quarterly expectations with EPS of $4.58 vs. $4.55 and revenue of $69.6B (+9.2% YoY); analysts hold a consensus "Moderate Buy" and a consensus price target of $1,039.13.
• Valuation and insider activity: COST trades at a high trailing P/E (~50.56), leaving little margin for error, and insiders have sold roughly 7,645 shares (~$7.05M) over the past three months.

CWA Asset Management Group LLC decreased its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 3.4% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 34,618 shares of the retailer's stock after selling 1,222 shares during the period. Costco Wholesale accounts for 1.1% of CWA Asset Management Group LLC's investment portfolio, making the stock its 18th biggest position. CWA Asset Management Group LLC's holdings in Costco Wholesale were worth $29,853,000 as of its most recent filing with the SEC.

A number of other institutional investors also recently made changes to their positions in the stock. Soundwatch Capital LLC boosted its stake in shares of Costco Wholesale by 635.7% during the second quarter. Soundwatch Capital LLC now owns 2,553 shares of the retailer's stock valued at $25,000 after acquiring an additional 2,206 shares during the last quarter. Hurley Capital LLC raised its stake in Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock valued at $31,000 after purchasing an additional 18 shares during the last quarter. Abich Financial Wealth Management LLC purchased a new position in Costco Wholesale in the 3rd quarter valued at about $34,000. Collier Financial purchased a new position in Costco Wholesale in the 3rd quarter valued at about $35,000. Finally, AXS Investments LLC acquired a new stake in shares of Costco Wholesale during the 3rd quarter worth about $36,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale Stock Performance

Shares of NASDAQ:COST opened at $972.33 on Friday. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,067.08. The firm has a market capitalization of $431.37 billion, a PE ratio of 50.56, a P/E/G ratio of 4.80 and a beta of 1.01. The business has a 50-day moving average of $984.26 and a two-hundred day moving average of $938.57.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its earnings results on Thursday, March 5th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The firm had revenue of $69.60 billion during the quarter, compared to the consensus estimate of $68.96 billion. During the same quarter in the prior year, the company earned $4.02 EPS. The company's revenue was up 9.2% on a year-over-year basis. As a group, research analysts forecast that Costco Wholesale Corporation will post 18.03 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Friday, January 30th were paid a $1.30 dividend. The ex-dividend date was Friday, January 30th. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.5%. Costco Wholesale's dividend payout ratio (DPR) is 27.04%.

More Costco Wholesale News

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

• Positive Sentiment: Costco is keeping fuel prices low with a deliberate pricing strategy to stay cheaper than competitors, which can drive continued traffic and membership value. As Gas Prices Soar, Costco's Using This Smart Strategy To Stay Cheaper Than Most
• Positive Sentiment: Analyst coverage remains constructive: consensus ratings across brokerages show a majority buy/moderate-buy stance, supporting investor confidence. Costco Receives Consensus Recommendation of "Moderate Buy" from Analysts
• Positive Sentiment: Costco upgraded its retail-media platform, a potential new ad-revenue stream that can boost margins over time. Costco upgrades its retail media platform
• Positive Sentiment: Multiple bullish write-ups (seeking-alpha coverage and long-term valuation defenses) are reinforcing the narrative that Costco’s membership model and pricing power can sustain outperformance. Costco: A Likely Outperformer Based On The Business Model
• Neutral Sentiment: CEO Ron Vachris addressed questions about the $1.50 hot dog combo, offering clarity to a vocal part of Costco’s brand/PR — removes a potential source of uncertainty but has limited direct earnings impact. Costco CEO gives update on future of $1.50 hot dog and soda combo
• Neutral Sentiment: Costco added new Kirkland Signature items (and launched a private-label refrigerated dog food), moves that can deepen margins and member loyalty but may take time to scale. Costco adds Kirkland Signature items
• Neutral Sentiment: Industry coverage and investor-interest pieces (Zacks, Yahoo, TipRanks) are drawing attention to COST, which can amplify trading activity but not necessarily change fundamentals. Costco is Attracting Investor Attention
• Negative Sentiment: Valuation remains a risk: COST trades at a premium (P/E around 50x), leaving limited room for error if same-store sales or margin expansion disappoint — this makes the stock sensitive to any weaker-than-expected data.

Wall Street Analysts Forecast Growth

COST has been the subject of a number of recent research reports. Oppenheimer lifted their price target on shares of Costco Wholesale from $1,050.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Thursday, February 5th. Truist Financial upped their price objective on shares of Costco Wholesale from $926.00 to $977.00 and gave the company a "hold" rating in a research note on Friday, March 6th. Sanford C. Bernstein restated an "outperform" rating and set a $1,155.00 target price on shares of Costco Wholesale in a research report on Monday, February 9th. The Goldman Sachs Group lowered their target price on shares of Costco Wholesale from $1,171.00 to $1,088.00 and set a "buy" rating for the company in a research note on Friday, March 6th. Finally, Citigroup reissued a "neutral" rating on shares of Costco Wholesale in a research note on Friday, February 20th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,039.13.

Insider Buying and Selling

In other news, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the completion of the transaction, the executive vice president directly owned 6,121 shares in the company, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Teresa A. Jones sold 850 shares of the firm's stock in a transaction on Wednesday, January 21st. The shares were sold at an average price of $986.26, for a total transaction of $838,321.00. Following the sale, the executive vice president directly owned 4,228 shares of the company's stock, valued at approximately $4,169,907.28. The trade was a 16.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 7,645 shares of company stock valued at $7,049,302 over the last three months. Company insiders own 0.10% of the company's stock.

About Costco Wholesale

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company's product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco's business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

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