Martingale Asset Management L P Reduces Holdings in Costco Wholesale Corporation $COST

Key Points

• Martingale Asset Management reduced its position in Costco by 13.4% in Q3, selling 6,051 shares and ending the quarter with 39,205 shares worth about $36.29 million (≈0.9% of its portfolio, Costco its 16th-largest holding).
• Costco posted a Q2 beat with EPS of $4.58 versus $4.55 and revenue of $69.6 billion (up 9.2% YoY); institutional investors own roughly 68.5% of the stock and analysts have a consensus "Moderate Buy" target near $1,039.
• A proposed nationwide class action over tariff refunds and recent insider stock sales are headline/legal risks that could create uncertainty, though the potential financial exposure remains unclear.

Martingale Asset Management L P lessened its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 13.4% during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 39,205 shares of the retailer's stock after selling 6,051 shares during the quarter. Costco Wholesale comprises approximately 0.9% of Martingale Asset Management L P's portfolio, making the stock its 16th largest position. Martingale Asset Management L P's holdings in Costco Wholesale were worth $36,289,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in Costco Wholesale during the second quarter worth $5,692,035,000. Laurel Wealth Advisors LLC raised its position in Costco Wholesale by 96,316.6% in the second quarter. Laurel Wealth Advisors LLC now owns 1,378,758 shares of the retailer's stock valued at $1,364,888,000 after purchasing an additional 1,377,328 shares during the period. Vanguard Group Inc. lifted its stake in shares of Costco Wholesale by 1.7% in the 2nd quarter. Vanguard Group Inc. now owns 43,356,271 shares of the retailer's stock valued at $42,920,107,000 after purchasing an additional 711,560 shares during the last quarter. Invesco Ltd. lifted its stake in shares of Costco Wholesale by 9.8% in the 2nd quarter. Invesco Ltd. now owns 4,291,557 shares of the retailer's stock valued at $4,248,384,000 after purchasing an additional 383,887 shares during the last quarter. Finally, Symphony Financial Ltd. Co. grew its holdings in shares of Costco Wholesale by 15,055.5% during the 2nd quarter. Symphony Financial Ltd. Co. now owns 320,994 shares of the retailer's stock worth $317,722,000 after purchasing an additional 318,876 shares during the period. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Costco Wholesale Stock Performance

Shares of Costco Wholesale stock opened at $1,003.23 on Friday. The stock has a market capitalization of $445.30 billion, a price-to-earnings ratio of 52.17, a price-to-earnings-growth ratio of 5.01 and a beta of 1.01. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. The business has a 50-day moving average of $972.44 and a 200 day moving average of $936.70. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month 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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.55 by $0.03. The company had revenue of $69.60 billion for the quarter, compared to analyst estimates of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The business's revenue for the quarter was up 9.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.02 earnings per share. As a group, sell-side analysts forecast that Costco Wholesale Corporation will post 18.03 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The firm also recently announced 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. This represents a $5.20 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Friday, January 30th. Costco Wholesale's dividend payout ratio is presently 27.04%.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on COST. HSBC cut their price objective on Costco Wholesale from $1,060.00 to $1,045.00 and set a "hold" rating for the company in a research report on Friday, December 12th. Jefferies Financial Group reaffirmed a "buy" rating and set a $1,050.00 target price on shares of Costco Wholesale in a research note on Thursday, March 5th. Rothschild & Co Redburn lifted their price target on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the company a "neutral" rating in a research report on Tuesday, February 17th. Evercore set a $1,100.00 price target on shares of Costco Wholesale in a research note on Monday, March 2nd. Finally, Roth Mkm restated a "sell" rating on shares of Costco Wholesale in a report on Wednesday, February 4th. Twenty-two research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,039.13.

Costco Wholesale News Summary

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

• Positive Sentiment: Q2 results and commentary showed continued momentum — revenue and EPS beat estimates, management cited membership/traffic gains and price management that supported sales. Costco Reports $68.24B FQ2 Sales
• Positive Sentiment: Analyst support is lifting sentiment — BMO and other shops have raised targets or reiterated Outperform/Buy ratings after the quarter, helping offset headline risk. BMO Sees Costco as Stable Bet
• Positive Sentiment: Operational tailwinds: new warehouse openings, expanded in‑warehouse experiences and viral product drops (e.g., Off‑White hoodies) are driving foot traffic and membership engagement. Off‑White Hoodies Spark Frenzy Liberty Hill Costco Opening
• Neutral Sentiment: Daiwa and other firms tweaked targets (some higher) while keeping conservative ratings in some cases — a modest vote of confidence but not uniformly bullish. Daiwa Adjusts Price Target
• Neutral Sentiment: Insider activity: an EVP disclosed the sale of ~730 shares — small relative to Costco’s market cap and unlikely to drive the move on its own. Executive Form 4
• Negative Sentiment: Legal overhang: a proposed nationwide class action alleges Costco must pass along tariff refunds to customers after the Supreme Court voided certain Trump‑era tariffs — plaintiffs seek broad relief and this creates uncertainty over potential liabilities, refunds, and reputational risk. Reuters: Costco customers sue MSN: Costco Sued Over Tariffs
• Negative Sentiment: Negative framing in some outlets suggests the suits could pressure Costco’s low‑margin model if rulings force refunds or changes to pricing practices; outcome and exposure remain uncertain and litigation could be a headline risk. 24/7 Wall St: Profit Model Threatened
• Negative Sentiment: Macro/commodity risks (Gulf tensions, oil spike) could weigh on consumer sentiment and fuel costs — a potential headwind for retailers if sustained. Heard on the Street: Gulf Worries

Insider Activity

In other Costco Wholesale news, EVP Russell D. Miller sold 1,500 shares of the business's stock in a transaction on Friday, January 9th. The shares were sold at an average price of $916.32, for a total value of $1,374,480.00. Following the completion of the transaction, the executive vice president owned 8,240 shares in the company, valued at $7,550,476.80. The trade was a 15.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total value of $732,204.60. Following the sale, the executive vice president directly owned 6,121 shares in the company, valued at $6,139,485.42. This represents a 10.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 7,645 shares of company stock worth $7,049,302 over the last 90 days. Company insiders own 0.10% of the company's stock.

Costco Wholesale Company Profile

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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