Gradient Investments LLC Grows Position in Costco Wholesale Corporation $COST

Key Points

• Gradient Investments LLC raised its Costco stake 7.6% in Q4 to 28,345 shares valued at $24.44 million, while institutional investors collectively own about 68.48% of the stock.
• Insiders sold 7,645 shares worth $7.05 million over the last quarter — including 1,500-share sales by EVPs Russell D. Miller and James C. Klauer — leaving corporate insiders with only 0.10% ownership.
• Costco slightly beat the quarter (EPS $4.58 vs. $4.55; revenue $69.6B, up 9.2%) but trades at a premium (P/E ≈ 50x); analysts carry a "Moderate Buy" consensus with an average target of $1,039.13.

Gradient Investments LLC raised its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 7.6% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund owned 28,345 shares of the retailer's stock after purchasing an additional 2,005 shares during the period. Gradient Investments LLC's holdings in Costco Wholesale were worth $24,443,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in the stock. Hurley Capital LLC raised its stake in shares of 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 acquiring an additional 18 shares during the period. Abich Financial Wealth Management LLC purchased a new stake in Costco Wholesale during the 3rd quarter worth $34,000. Collier Financial acquired a new stake in Costco Wholesale in the 3rd quarter valued at $35,000. AXS Investments LLC purchased a new position in Costco Wholesale in the third quarter valued at about $36,000. Finally, Imprint Wealth LLC acquired a new position in shares of Costco Wholesale during the third quarter worth about $36,000. Institutional investors and hedge funds own 68.48% of the company's stock.

Insider Activity at Costco Wholesale

In related news, EVP Russell D. Miller sold 1,500 shares of the company's stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $916.32, for a total transaction of $1,374,480.00. Following the sale, the executive vice president directly owned 8,240 shares of the company's stock, valued at approximately $7,550,476.80. This represents a 15.40% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP James C. Klauer sold 1,500 shares of the firm's stock in a transaction on Wednesday, January 14th. The stock was sold at an average price of $939.00, for a total value of $1,408,500.00. Following the transaction, the executive vice president owned 44,837 shares in the company, valued at $42,101,943. This trade represents a 3.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 7,645 shares of company stock worth $7,049,302 over the last quarter. 0.10% of the stock is owned by corporate insiders.

Trending Headlines about Costco Wholesale

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.

Costco Wholesale Price Performance

COST opened at $972.33 on Monday. The company has a market capitalization of $431.37 billion, a P/E ratio of 50.56, a PEG ratio of 4.80 and a beta of 1.00. The company has a 50-day moving average of $984.26 and a 200-day moving average of $938.49. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,067.08.

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

Costco Wholesale Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on COST shares. Wells Fargo & Company upped their target price on Costco Wholesale from $900.00 to $950.00 and gave the stock an "equal weight" rating in a research report on Thursday, February 5th. Telsey Advisory Group raised their target price on Costco Wholesale from $1,100.00 to $1,125.00 and gave the company an "outperform" rating in a research note on Friday, March 6th. Northcoast Research set a $1,100.00 target price on Costco Wholesale and gave the stock a "buy" rating in a research report on Wednesday, December 24th. Weiss Ratings raised Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, March 17th. Finally, BTIG Research restated a "buy" rating and set a $1,115.00 price objective on shares of Costco Wholesale in a research note on Thursday, March 5th. Twenty-two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Costco Wholesale currently has an average rating of "Moderate Buy" and an average target price of $1,039.13.

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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