Diversified Management Inc. Raises Stake in Costco Wholesale Corporation $COST

Key Points

• Diversified Management Inc. increased its Costco stake by 723.7% in the third quarter, ending with 8,031 shares valued at approximately $7.31 million. Institutional investors own 68.48% of Costco’s stock.
• Costco reported strong operating performance, with quarterly revenue up 11.1% year over year to $95.72 billion and earnings of $6.75 per share, beating analyst estimates.
• Despite robust sales and customer traffic, Costco trades at a premium valuation of about 45.7 times earnings. Analysts maintain a “Moderate Buy” consensus with an average price target of $1,046.27, though some firms recently lowered their targets.

Diversified Management Inc. raised its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 723.7% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 8,031 shares of the retailer's stock after acquiring an additional 7,056 shares during the quarter. Costco Wholesale makes up 1.3% of Diversified Management Inc.'s portfolio, making the stock its 17th largest holding. Diversified Management Inc.'s holdings in Costco Wholesale were worth $7,311,000 as of its most recent SEC filing.

A number of other institutional investors also recently bought and sold shares of the stock. Palisade Asset Management LLC grew its holdings in Costco Wholesale by 1.4% during the fourth quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock valued at $605,000 after purchasing an additional 10 shares during the period. Graybill Wealth Management LTD. lifted its position in shares of Costco Wholesale by 0.3% during the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock valued at $2,754,000 after buying an additional 10 shares in the last quarter. Wealth Effects LLC lifted its position in shares of Costco Wholesale by 1.2% during the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock valued at $871,000 after buying an additional 10 shares in the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. grew its stake in shares of Costco Wholesale by 1.8% during the 1st quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock valued at $549,000 after acquiring an additional 10 shares during the period. Finally, First National Bank of Hutchinson increased its holdings in Costco Wholesale by 0.9% in the 1st quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock worth $1,094,000 after acquiring an additional 10 shares in the last quarter. 68.48% of the stock is owned by institutional investors.

Costco Wholesale News Summary

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

• Positive Sentiment: Strong customer traffic and transaction growth supported broad-based comparable-sales gains. U.S. comparable sales increased 12.5%, Canada rose 6.3%, and other international markets gained 10.8%, offering evidence that Costco’s membership model continues to attract shoppers. Costco sales rise in September as strong traffic drives start to fiscal 2027
• Positive Sentiment: Digital sales grew approximately 19%, adding another growth channel and strengthening expectations for a solid start to fiscal 2027. The report also supports the view that Costco’s international operations remain an important contributor to future revenue growth. Costco's September Sales Rise 13% on Strong Comps, Digital Growth
• Neutral Sentiment: Investors are paying a premium for this consistency: COST trades at roughly 45 times trailing earnings. The valuation reflects expectations for years of continued growth, leaving the stock particularly sensitive to any slowdown in traffic, memberships, or margins. What Are Costco Investors Betting On?
• Negative Sentiment: Some of the headline sales strength came from higher gasoline prices and other potentially lower-margin or one-time effects. Analysts therefore caution that the underlying 7.6% increase, while healthy, is less dramatic than the 13% reported-sales gain. Costco's Sales Rebound in September Looks Great on Paper. Why There's More to the Story.

Costco Wholesale Trading Up 0.6%

NASDAQ:COST opened at $947.92 on Friday. The firm has a 50-day simple moving average of $930.81 and a 200-day simple moving average of $963.49. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The firm has a market cap of $420.38 billion, a P/E ratio of 45.66, a P/E/G ratio of 4.03 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 released its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating analysts' consensus estimates of $6.54 by $0.21. The business had revenue of $95.72 billion for the quarter, compared to analysts' expectations 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 was up 11.1% compared to the same quarter last year. During the same period last year, the business earned $5.87 EPS. Equities analysts anticipate that Costco Wholesale Corporation will post 22.86 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on COST. BMO Capital Markets restated an "outperform" rating on shares of Costco Wholesale in a research note on Friday, September 25th. Royal Bank Of Canada restated a "sector perform" rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a research report on Friday, September 25th. Weiss Ratings cut Costco Wholesale from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 2nd. JPMorgan Chase & Co. dropped their price target 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. Finally, Mizuho dropped their target price on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating for the company in a research report on Friday, September 25th. Twenty-two research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $1,046.27.

Insider Activity

In other 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 directly owned 7,134 shares in the company, valued at approximately $6,534,244.62. The trade was a 23.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.10% of the stock is currently owned by company insiders.

About Costco Wholesale

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.

Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.