St. Louis Financial Planners Asset Management LLC Makes New $3.08 Million Investment in Costco Wholesale Corporation $COST

Key Points

• St. Louis Financial Planners Asset Management LLC invested approximately $3.08 million in Costco during the third quarter, acquiring 3,413 shares. Institutional investors and hedge funds now own 68.48% of the company.
• Costco exceeded quarterly expectations with EPS of $6.75 versus the $6.54 consensus, while revenue rose 11.1% year over year to $95.72 billion. September net sales also increased 13% to $30.02 billion, with digitally enabled sales up 19%.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $1,087.40, but Costco’s elevated valuation remains a risk. The company declared a quarterly dividend of $1.47 per share, representing an annualized yield of about 0.6%.

St. Louis Financial Planners Asset Management LLC acquired a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 3,413 shares of the retailer's stock, valued at approximately $3,076,000. Costco Wholesale accounts for approximately 1.3% of St. Louis Financial Planners Asset Management LLC's holdings, making the stock its 26th biggest holding.

Other large investors also recently modified their holdings of the company. Contravisory Investment Management Inc. boosted its position in Costco Wholesale by 107.7% during the third quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer's stock valued at $25,000 after acquiring an additional 14 shares during the last quarter. C M Bidwell & Associates Ltd. acquired a new stake in Costco Wholesale during the 2nd quarter worth about $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of Costco Wholesale in the 4th quarter worth about $27,000. Burk Holdings LLC bought a new position in shares of Costco Wholesale in the 2nd quarter worth about $30,000. Finally, Manning & Napier Advisors LLC bought a new position in shares of Costco Wholesale in the 2nd quarter worth about $30,000. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $989.11 on Friday. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50. The stock's 50 day moving average is $933.15 and its 200-day moving average is $963.28. The firm has a market capitalization of $438.30 billion, a price-to-earnings ratio of 47.64, a PEG ratio of 4.23 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 (EPS) for the quarter, beating the consensus estimate of $6.54 by $0.21. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The business had revenue of $95.72 billion during the quarter, compared to the consensus estimate of $94.97 billion. During the same quarter last year, the firm posted $5.87 EPS. Costco Wholesale's revenue was up 11.1% compared to the same quarter last year. Sell-side analysts forecast that Costco Wholesale Corporation will post 22.70 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be issued 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 dividend payout ratio is presently 28.32%.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: September sales accelerated: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results reinforce the strength of Costco’s membership model, e-commerce business and value-focused offering. September Sales Growth
• Positive Sentiment: Analyst support remains strong: Tigress Financial reiterated a Buy rating while setting a $1,065 price target after previously publicizing a higher $1,250 target. Other coverage highlights Costco’s sales growth, membership loyalty and digital gains, supporting the recent recovery above key moving averages. Tigress Financial Price Target
• Positive Sentiment: Dividend maintained: Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. While the approximately 0.6% yield is modest, the payment signals continued cash-flow strength. Costco Dividend Announcement
• Positive Sentiment: Expansion pipeline: Proposed warehouse projects in Macon and Oakland, along with a planned Merced County relocation, point to continued investment in Costco’s store network. Infrastructure financing of up to $30 million could support the Macon development. Macon Costco Project
• Neutral Sentiment: Costco’s fiscal 2027 executive bonus plan adds sustainability-related measures. The change may support long-term operational goals, but it is unlikely to materially affect near-term earnings. Costco Executive Bonus Update
• Negative Sentiment: Valuation and macro risks remain: Costco trades at a high earnings multiple, leaving the stock vulnerable if growth or membership trends slow. Persistent inflation and potentially higher interest rates could also pressure consumer spending and market valuations.
• Negative Sentiment: An executive sold 1,100 shares worth approximately $1.05 million. The transaction is relatively small compared with Costco’s market value, but it may add a modest cautionary signal for investors. Costco Insider Sale

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on COST. Royal Bank Of Canada reissued a "sector perform" rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a research note on Friday, October 9th. BMO Capital Markets reaffirmed an "outperform" rating on shares of Costco Wholesale in a research note on Friday, September 25th. Truist Financial lowered their target price on Costco Wholesale from $1,011.00 to $955.00 and set a "hold" rating for the company in a report on Friday, September 25th. Robert W. Baird set a $1,175.00 price target on Costco Wholesale in a research note on Friday, September 25th. Finally, Freedom Broker dropped their price target on 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-four equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $1,087.40.

Insiders Place Their Bets

In other news, EVP William Richard Wilcox sold 1,100 shares of the business's stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the sale, the executive vice president directly owned 3,094 shares of the company's stock, valued at $2,964,701.74. The trade was a 26.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, 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 transaction 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 position. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is currently owned by company insiders.

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.

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