MassMutual Private Wealth & Trust FSB Acquires 19,074 Shares of Costco Wholesale Corporation $COST

Key Points

• MassMutual Private Wealth & Trust FSB increased its Costco stake by 120%, purchasing 19,074 additional shares to own 34,972 shares valued at approximately $31.8 million. Institutional investors collectively hold 68.48% of Costco’s outstanding stock.
• Analysts maintain a generally positive outlook, with 22 Buy, 10 Hold and 1 Sell rating; the stock has a “Moderate Buy” consensus and an average price target of $1,046.27.
• Costco exceeded quarterly expectations with $6.75 in earnings per share and $95.72 billion in revenue, while revenue grew 11.1% year over year. However, its premium valuation and potential margin pressure from rising operating costs remain key risks.

MassMutual Private Wealth & Trust FSB raised its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 120.0% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 34,972 shares of the retailer's stock after buying an additional 19,074 shares during the quarter. MassMutual Private Wealth & Trust FSB's holdings in Costco Wholesale were worth $31,836,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in COST. C M Bidwell & Associates Ltd. purchased a new stake in shares of Costco Wholesale in the second quarter valued at about $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale during the fourth quarter worth about $27,000. Burk Holdings LLC acquired a new stake in shares of Costco Wholesale during the second quarter valued at about $30,000. Manning & Napier Advisors LLC purchased a new position in shares of Costco Wholesale during the second quarter worth $30,000. Finally, Lifetime Wealth Management P.C. acquired a new stake in shares of Costco Wholesale in the fourth quarter valued at $28,000. Institutional investors and hedge funds own 68.48% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently commented on COST. Roth Capital reissued a "sell" rating and set a $781.00 target price on shares of Costco Wholesale in a research note on Friday, September 25th. Royal Bank Of Canada reissued a "sector perform" rating and set a $1,000.00 price objective on shares of Costco Wholesale in a report on Friday, September 25th. HSBC upgraded Costco Wholesale to a "buy" rating in a research report on Friday, September 25th. TD Cowen restated a "buy" rating on shares of Costco Wholesale in a research report on Friday, September 25th. Finally, Freedom Broker dropped their price objective on shares of Costco Wholesale from $1,030.00 to $1,010.00 and set a "buy" rating on the stock in a research note on Friday, September 25th. Twenty-two analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Costco Wholesale currently has an average rating of "Moderate Buy" and an average price target of $1,046.27.

Costco Wholesale Stock Performance

NASDAQ:COST opened at $920.65 on Monday. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. The stock has a fifty day simple moving average of $932.76 and a 200-day simple moving average of $964.72. The company has a market capitalization of $408.29 billion, a PE ratio of 44.35, a price-to-earnings-growth ratio of 3.93 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating analysts' consensus estimates of $6.54 by $0.21. The firm had revenue of $95.72 billion for the quarter, compared to analysts' expectations of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The firm's revenue was up 11.1% on a year-over-year basis. During the same period in the prior year, the company earned $5.87 EPS. On average, equities research analysts expect that Costco Wholesale Corporation will post 22.86 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were given a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale's dividend payout ratio is currently 28.32%.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco’s gasoline, pharmacy, travel and other ancillary businesses are increasing customer engagement and expanding its share of members’ wallets. These services may support recurring revenue, traffic and margins beyond merchandise sales. Costco's Ancillary Businesses Expand Share-of-Wallet Opportunity
• Positive Sentiment: Costco continues to pressure traditional grocers through competitive pricing, fresh-food offerings, e-commerce and strong value perception. Growing market share could help sustain sales and membership growth. Has Costco Become Grocery’s Biggest Threat?
• Positive Sentiment: Costco and SCAN Health Plan launched the company’s first Medicare Advantage plans in California and Nevada. The initiative adds another potential member benefit and could create a new avenue for customer engagement, although its financial contribution is not yet clear. SCAN and Costco Launch Medicare Advantage Plans
• Positive Sentiment: New and converted Business Center locations, including projects in Texas and Kansas City, should expand Costco’s commercial customer base and warehouse footprint over time. Costco Business Center Expansion
• Neutral Sentiment: Higher fuel prices contributed roughly three percentage points to fiscal fourth-quarter sales growth. While this boosts reported revenue, it reflects higher prices rather than stronger gasoline volume, making the underlying growth rate less impressive. Is One Number Reason Enough to Sell Costco Stock?
• Negative Sentiment: Rising fuel, freight, supplier and merchandise costs could pressure Costco’s already-thin margins. Investors are watching whether the company absorbs the increases to preserve its value proposition or passes them to customers at the risk of slowing demand. Can Costco Absorb Rising Costs?
• Negative Sentiment: Costco’s premium valuation leaves limited room for disappointment. Commentary questioning whether its growth justifies the high earnings multiple may restrain further gains even as the company’s operating performance remains solid.
• Negative Sentiment: Executive Vice President Claudine Adamo sold 2,200 shares worth approximately $2.02 million, reducing her direct holdings by 23.57%. The transaction does not change Costco’s fundamentals but may weigh modestly on sentiment. Costco Insider Share Sale

Insider Activity

In related news, EVP Claudine Adamo sold 2,200 shares of the 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 owned 7,134 shares of the company's stock, valued at $6,534,244.62. This trade represents a 23.57% 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. 0.10% of the stock is owned by corporate insiders.

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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