First Pacific Financial Sells 1,112 Shares of Costco Wholesale Corporation $COST

Key Points

• First Pacific Financial reduced its Costco stake by 19% in the third quarter, selling 1,112 shares and retaining 4,737 shares valued at approximately $4.19 million.
• Costco reported strong quarterly results, with earnings of $6.75 per share exceeding estimates and revenue rising 11.1% year over year to $95.72 billion. The company also declared a quarterly dividend of $1.47 per share.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $1,081.79, although Costco’s elevated valuation—around 47 times earnings—could increase downside risk if growth slows.

First Pacific Financial trimmed its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 19.0% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 4,737 shares of the retailer's stock after selling 1,112 shares during the quarter. First Pacific Financial's holdings in Costco Wholesale were worth $4,191,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Bank of America Corp DE bought a new position in Costco Wholesale during the second quarter worth $6,781,946,000. Diamant Asset Management Inc. lifted its holdings in Costco Wholesale by 99,278.0% in the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after buying an additional 6,720,130 shares during the period. State Street Corp lifted its holdings in Costco Wholesale by 31.7% in the second quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock valued at $22,359,224,000 after buying an additional 5,749,362 shares during the period. Corient Private Wealth LLC boosted its position in Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock valued at $5,282,182,000 after acquiring an additional 5,472,968 shares during the last quarter. Finally, Legal & General Group Plc bought a new stake in Costco Wholesale during the second quarter valued at $2,362,188,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale Trading Up 2.9%

Shares of COST stock opened at $982.00 on Thursday. 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 $435.15 billion, a price-to-earnings ratio of 47.30, a PEG ratio of 4.08 and a beta of 0.88. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a 50-day simple moving average of $931.75 and a two-hundred day simple moving average of $963.13.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, topping the consensus estimate 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 return on equity of 27.60% and a net margin of 3.04%. The business's revenue was up 11.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $5.87 earnings per share. Research analysts anticipate that Costco Wholesale Corporation will post 22.70 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be given a $1.47 dividend. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's payout ratio is 28.32%.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Defensive-sector rotation: Higher inflation prompted investors to move toward companies selling everyday necessities. Costco benefited alongside Walmart and Target as a perceived defensive retailer. Walmart Advances as Inflation Data Sends Money Into Defensives
• Positive Sentiment: Strong September sales momentum: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales rose 19%. The figures reinforce the strength of its membership, value-focused pricing and e-commerce operations. Costco September Sales Jump and Faster Digital Growth
• Positive Sentiment: Dividend declared: Costco’s board approved a quarterly cash dividend of $1.47 per share, payable November 13 to shareholders of record October 30. The payout provides a modest shareholder return and signals continued confidence in cash generation. Costco Announces Quarterly Cash Dividend
• Positive Sentiment: Expansion and balance-sheet support: Analysts highlighted Costco’s approximately $21.3 billion liquidity cushion, manageable debt and robust cash flows as advantages for funding new warehouses and digital investments. A Florida city council also gave an early approval for a new store. How Costco’s Balance Sheet Gives It an Edge
• Positive Sentiment: Positive earnings expectations: Erste Group raised its FY2027 EPS forecast to $22.80 from $22.67 and expects $25.01 for FY2028, modestly above the company’s current-year consensus outlook. Costco analyst estimates
• Neutral Sentiment: Articles highlighting Costco’s influence on home-buying decisions, younger membership growth and exclusive seasonal products reinforce brand engagement but are unlikely to materially change near-term earnings expectations. Inside the Costco Effect
• Negative Sentiment: Costco continues to trade at a demanding valuation, with a high price-to-earnings multiple. That leaves COST vulnerable if sales growth, membership trends or consumer spending weaken.

Analyst Ratings Changes

A number of research analysts have recently issued reports on COST shares. UBS Group reissued a "buy" rating on shares of Costco Wholesale in a research note on Thursday, September 17th. JPMorgan Chase & Co. cut their target price on Costco Wholesale from $1,100.00 to $1,015.00 and set an "overweight" rating on the stock in a research report on Friday, September 25th. Roth Capital reaffirmed a "sell" rating and set a $781.00 target price on shares of Costco Wholesale in a research note on Friday, September 25th. Raymond James Financial lowered their target price on Costco Wholesale from $1,100.00 to $1,050.00 and set an "outperform" rating for the company in a report on Friday, September 25th. Finally, TD Cowen reiterated a "buy" rating on shares of Costco Wholesale in a report on Friday, September 25th. Twenty-three investment 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. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $1,081.79.

Insider Buying and Selling

In related news, EVP Claudine Adamo sold 2,200 shares of the business's stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following 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 position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction 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. This represents a 26.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale Company 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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