Encompass Wealth Advisors LLC Cuts Position in Costco Wholesale Corporation $COST

Key Points

• Encompass Wealth Advisors LLC cut its stake in Costco by 57.3%, selling 3,117 shares to hold 2,319 shares worth about $2.0 million, which represents ~0.7% of its portfolio and is its 28th-largest holding.
• Costco slightly beat quarterly expectations (EPS $4.58 vs. $4.55; revenue $69.6B vs. $68.96B) and reported March sales up 11.3%, prompting several analysts to raise targets and a consensus rating of “Moderate Buy” with a $1,043.13 price target.
• The stock trades at a premium (market cap ~$457.9B, P/E ≈53.7), which has drawn both buy-side support and valuation concerns from some analysts despite strong sales momentum.

Encompass Wealth Advisors LLC decreased its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 57.3% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 2,319 shares of the retailer's stock after selling 3,117 shares during the quarter. Costco Wholesale comprises approximately 0.7% of Encompass Wealth Advisors LLC's portfolio, making the stock its 28th biggest holding. Encompass Wealth Advisors LLC's holdings in Costco Wholesale were worth $2,000,000 as of its most recent SEC filing.

Other large investors have also recently bought and sold shares of the company. Hurley Capital LLC raised its position in Costco Wholesale by 120.0% in the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after acquiring an additional 18 shares in the last quarter. Abich Financial Wealth Management LLC purchased a new position in Costco Wholesale in the third quarter worth $34,000. Collier Financial purchased a new position in Costco Wholesale in the third quarter worth $35,000. AXS Investments LLC purchased a new position in Costco Wholesale in the third quarter worth $36,000. Finally, Imprint Wealth LLC purchased a new position in Costco Wholesale in the third quarter worth $36,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale Trading Up 0.2%

Shares of COST stock opened at $1,032.03 on Friday. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,067.08. The stock has a market cap of $457.86 billion, a P/E ratio of 53.67, a P/E/G ratio of 5.09 and a beta of 0.99. The business has a fifty day simple moving average of $994.33 and a 200-day simple moving average of $942.50. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings data on Thursday, March 5th. The retailer reported $4.58 EPS for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. The business had revenue of $69.60 billion for the quarter, compared to analyst estimates of $68.96 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The business's revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter last year, the company earned $4.02 earnings per share. On average, analysts forecast that Costco Wholesale Corporation will post 18.03 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, January 30th were paid a dividend of $1.30 per share. The ex-dividend date of this dividend 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 presently 27.04%.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on COST shares. UBS Group set a $1,175.00 price target on Costco Wholesale in a research report on Friday, March 6th. Wells Fargo & Company raised their price target on Costco Wholesale from $950.00 to $1,000.00 and gave the company an "equal weight" rating in a research report on Thursday. Telsey Advisory Group raised their price target on Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an "outperform" rating in a research report on Thursday. Sanford C. Bernstein restated an "outperform" rating and issued a $1,155.00 price target on shares of Costco Wholesale in a research report on Monday, February 9th. Finally, Raymond James Financial raised their price target on Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an "outperform" rating in a research report on Friday, March 6th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Costco Wholesale has a consensus rating of "Moderate Buy" and a consensus price target of $1,043.13.

Insider Buying and Selling

In related news, EVP James C. Klauer sold 1,500 shares of the stock in a transaction on Wednesday, January 14th. The stock was sold at an average price of $939.00, for a total transaction of $1,408,500.00. Following the sale, the executive vice president owned 44,837 shares of the company's stock, valued at $42,101,943. This trade represents a 3.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Teresa A. Jones sold 850 shares of the stock in a transaction on Wednesday, January 21st. The shares were sold at an average price of $986.26, for a total value of $838,321.00. Following the sale, the executive vice president directly owned 4,228 shares in the company, valued at approximately $4,169,907.28. The trade was a 16.74% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 3,538 shares of company stock worth $3,416,416 in the last ninety days. 0.10% of the stock is currently owned by insiders.

Costco Wholesale News Summary

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

• Positive Sentiment: March sales beat expectations — Net sales for the five weeks ended April 5 rose 11.3% to $28.41 billion, with digital comps up strongly and traffic/transactions improving, which underpins near-term revenue and membership momentum. Read More.
• Positive Sentiment: Analysts respond favorably — Multiple firms raised or reiterated targets/ratings after the sales beat (Deutsche Bank maintained a Buy and nudged its PT higher; Telsey raised its PT and kept an Outperform). These notes help support upside near term. Read More.
• Positive Sentiment: Street buy-side support remains — William Blair and Goldman Sachs kept Buy ratings citing resilient comps, fuel-driven traffic and membership tailwinds that justify continued confidence. Read More.
• Neutral Sentiment: Operational/merch buzz — Consumer items and in-store traffic drivers (Edna’s Margarita Mix return, viral apparel and new bakery items) generate shopper engagement but are unlikely to materially move fundamentals by themselves. Read More.
• Neutral Sentiment: Initiatives and tech trials — Management experiments (e.g., faster checkout tests) and Cramer mentions of initiatives signal ongoing operational improvements; constructive long term but not immediate catalysts. Read More.
• Negative Sentiment: Valuation concerns cap enthusiasm — A number of analysts and commentators flag Costco’s premium multiple (P/E ~50+), with some saying the valuation is hard to justify and keeping Hold/Equal‑Weight stances; Wells Fargo’s PT sits below some current levels, illustrating downside risk if growth slows. Read More.
• Negative Sentiment: Mixed street positioning — Truist and a few strategists remain cautious (Hold/neutral), arguing that while sales are strong, the margin for disappointment is smaller at current prices. Read More.

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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