Godsey & Gibb Inc. Purchases 1,091 Shares of Costco Wholesale Corporation $COST

Key Points

• Godsey & Gibb increased its Costco stake by 4.1% in the third quarter, adding 1,091 shares to own 27,833 shares valued at approximately $25.3 million. Institutional investors collectively own 68.48% of Costco.
• Costco reported strong operating momentum, with quarterly EPS of $6.75 exceeding estimates and revenue rising 11.1% year over year to $95.72 billion. September net sales increased 13%, while digitally enabled sales grew 19%.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and $1,081.79 price target, although several firms recently lowered their targets. Shares trade at a high valuation of roughly 47 times earnings, and two executives recently sold stock.

Godsey & Gibb Inc. raised its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 4.1% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 27,833 shares of the retailer's stock after acquiring an additional 1,091 shares during the period. Costco Wholesale comprises approximately 1.7% of Godsey & Gibb Inc.'s portfolio, making the stock its 20th biggest holding. Godsey & Gibb Inc.'s holdings in Costco Wholesale were worth $25,333,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Wealth Effects LLC increased its stake in Costco Wholesale by 1.2% in the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock worth $871,000 after purchasing an additional 10 shares during the period. Folger Nolan Fleming Douglas Capital Management Inc. increased its position in 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 purchasing an additional 10 shares during the period. First National Bank of Hutchinson increased its position in shares of Costco Wholesale by 0.9% during the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock valued at $1,094,000 after buying an additional 10 shares during the period. Frisch Financial Group Inc. grew its holdings in shares of Costco Wholesale by 1.0% during the 1st quarter. Frisch Financial Group Inc. now owns 1,049 shares of the retailer's stock worth $1,045,000 after acquiring an additional 10 shares during the period. Finally, Main Street Group LTD raised its holdings in Costco Wholesale by 0.8% in the first quarter. Main Street Group LTD now owns 1,226 shares of the retailer's stock worth $1,221,000 after purchasing an additional 10 shares in the last quarter. 68.48% of the stock is owned by institutional investors.

Key Stories 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 Upgrades and Downgrades

COST has been the subject of a number of analyst reports. TD Cowen reaffirmed a "buy" rating on shares of Costco Wholesale in a research note on Friday, September 25th. JPMorgan Chase & Co. lowered their price objective 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. Jefferies Financial Group decreased their target price on shares of Costco Wholesale from $1,130.00 to $1,100.00 in a report on Friday, September 25th. Freedom Broker lowered their price target on Costco Wholesale from $1,030.00 to $1,010.00 and set a "buy" rating on the stock in a report on Friday, September 25th. Finally, Bank of America lowered their price objective on shares of Costco Wholesale from $1,200.00 to $1,095.00 and set a "buy" rating on the stock in a research report on Wednesday, September 16th. Twenty-three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,081.79.

Insider Buying and Selling at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the company's stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the sale, the executive vice president owned 7,134 shares in the company, valued at $6,534,244.62. This represents a 23.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the firm's stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total value of $1,054,031.00. Following the completion of the transaction, the executive vice president directly owned 3,094 shares in the company, valued at $2,964,701.74. This trade represents a 26.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is currently owned by insiders.

Costco Wholesale Stock Up 2.9%

COST opened at $982.00 on Thursday. The firm's 50 day simple moving average is $931.75 and its two-hundred day simple moving average is $963.13. The company has a market capitalization of $435.15 billion, a PE ratio of 47.30, a PEG ratio of 4.08 and a beta of 0.88. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings data 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. The firm had revenue of $95.72 billion during the quarter, compared to the consensus estimate 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 for the quarter was up 11.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $5.87 EPS. As a group, equities analysts forecast that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Announces Dividend

The business also recently announced 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. The ex-dividend date is Friday, October 30th. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale's payout ratio is 28.32%.

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.

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