NorthCrest Asset Manangement LLC Purchases 3,958 Shares of Costco Wholesale Corporation $COST

Key Points

• NorthCrest Asset Management increased its Costco stake by 11.6% in the third quarter, adding 3,958 shares to own 38,038 shares valued at approximately $34.5 million. Institutional investors collectively own 68.48% of Costco’s stock.
• Analysts maintain a generally positive outlook, with 23 Buy ratings, nine Holds, and one Sell; the consensus rating is “Moderate Buy” with an average price target of $1,046.27, despite several recent target-price reductions.
• Costco exceeded quarterly earnings and revenue expectations, reporting $6.75 in EPS and $95.72 billion in revenue, while sales grew 11.1% year over year. However, the stock trades at a premium valuation of about 46 times earnings, creating sensitivity to higher interest rates and Treasury yields.

NorthCrest Asset Manangement LLC boosted its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 11.6% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 38,038 shares of the retailer's stock after acquiring an additional 3,958 shares during the period. Costco Wholesale accounts for 0.8% of NorthCrest Asset Manangement LLC's holdings, making the stock its 22nd biggest position. NorthCrest Asset Manangement LLC's holdings in Costco Wholesale were worth $34,490,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of COST. Palisade Asset Management LLC increased its position in shares of Costco Wholesale by 1.4% during the fourth quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock worth $605,000 after purchasing an additional 10 shares in the last quarter. Graybill Wealth Management LTD. lifted its holdings in shares of Costco Wholesale by 0.3% during the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock valued at $2,754,000 after purchasing an additional 10 shares during the last quarter. Wealth Effects LLC boosted its position in shares of 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 in the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. boosted its position in shares of Costco Wholesale by 1.8% in the 1st quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock worth $549,000 after purchasing an additional 10 shares in the last quarter. Finally, First National Bank of Hutchinson grew its stake in Costco Wholesale by 0.9% during the 1st quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock worth $1,094,000 after buying an additional 10 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Freedom Broker reduced their target price on Costco Wholesale from $1,030.00 to $1,010.00 and set a "buy" rating on the stock in a research report on Friday, September 25th. UBS Group reissued a "buy" rating on shares of Costco Wholesale in a report on Thursday, September 17th. Evercore restated an "outperform" rating on shares of Costco Wholesale in a research note on Tuesday, September 22nd. Bank of America cut 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 report on Wednesday, September 16th. Finally, Wells Fargo & Company decreased their price objective on shares of Costco Wholesale from $1,000.00 to $950.00 and set an "equal weight" rating for the company in a research report on Friday, September 25th. Twenty-three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Costco Wholesale has an average rating of "Moderate Buy" and an average price target of $1,046.27.

Insider Buying and Selling

In related news, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total value of $2,015,046.00. Following the transaction, the executive vice president owned 7,134 shares in the company, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.10% of the stock is currently owned by corporate insiders.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: September sales accelerated: Costco reported September net sales of approximately $30.02 billion, up 13.0% year over year. The result reinforces expectations for resilient consumer demand and was a key catalyst for renewed investor interest. Costco Wholesale Posts 13% September Sales Growth
• Positive Sentiment: Digital momentum remains strong: September digital sales increased 19%, aided by expanded delivery options and personalization. Continued e-commerce growth provides an additional avenue for Costco to increase sales beyond its warehouse base. Costco's September Digital Sales Growth
• Positive Sentiment: Long-term shareholder appeal: Commentary highlights Costco’s history of share-price appreciation and dividend growth. Its dividend increased substantially over the past five years, while investors continue to anticipate potential special dividends. Costco Dividend Income Outlook
• Positive Sentiment: Potential warehouse expansion: Filings indicate a proposed West Oakland Costco could employ hundreds, suggesting continued investment in the company’s physical-store footprint. West Oakland Costco Employment Plans
• Neutral Sentiment: Membership value is mixed: Costco’s bulk pricing can provide low per-unit costs, but the $65 annual membership and large package sizes may not benefit every household. This supports the value proposition for high-volume shoppers but offers limited evidence of a broad sales catalyst. Costco Grocery Staple Pricing Analysis
• Negative Sentiment: Valuation and yield risks: COST trades at roughly 45–46 times earnings, while the 10-year Treasury yield has reached 5.2%, far above Costco’s dividend yield. Higher bond yields can make the stock less attractive to income-focused investors and increase pressure on its premium valuation. Costco Stock Versus 10-Year Treasury Yields
• Negative Sentiment: Fuel-related growth may be less durable: Higher gasoline prices have boosted reported sales at Costco’s fuel operations. If prices decline, some of the recent sales growth could fade, though cheaper gasoline could benefit household budgets and merchandise spending. Impact of Cheaper Gas on Costco Sales and Margins

Costco Wholesale Stock Performance

Shares of COST stock opened at $959.44 on Tuesday. The business has a fifty day moving average of $930.81 and a 200 day moving average of $963.26. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. The firm has a market capitalization of $425.16 billion, a price-to-earnings ratio of 46.22, a price-to-earnings-growth ratio of 4.05 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating the consensus estimate of $6.54 by $0.21. The business had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The company's quarterly revenue was up 11.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $5.87 EPS. As a group, research analysts expect that Costco Wholesale Corporation will post 22.85 earnings per share for the current year.

Costco Wholesale 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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