Verdence Capital Advisors LLC Purchases 3,206 Shares of Costco Wholesale Corporation $COST

Key Points

• Verdence Capital Advisors increased its Costco stake by 22.9% in the third quarter, purchasing 3,206 shares and bringing its holdings to 17,221 shares valued at approximately $15.7 million. Institutional investors collectively own 68.48% of the company.
• Costco reported quarterly EPS of $6.75, beating estimates, while revenue rose 11.1% year over year to $95.72 billion. Shares traded near $992, with analysts maintaining a “Moderate Buy” consensus and an average price target of $1,086.19.
• Valuation remains the key risk: Costco trades at roughly 48 times earnings near its highs, while two executives recently sold shares. The company also declared a $1.47 quarterly dividend, implying a modest 0.6% annual yield.

Verdence Capital Advisors LLC grew its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 22.9% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 17,221 shares of the retailer's stock after purchasing an additional 3,206 shares during the quarter. Verdence Capital Advisors LLC's holdings in Costco Wholesale were worth $15,677,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the business. Folger Nolan Fleming Douglas Capital Management Inc. raised its holdings in 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 valued at $549,000 after acquiring an additional 10 shares during the last quarter. First National Bank of Hutchinson grew its position in shares of Costco Wholesale by 0.9% in the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock valued at $1,094,000 after purchasing an additional 10 shares in the last quarter. Frisch Financial Group Inc. increased its holdings in shares of Costco Wholesale by 1.0% in the first quarter. Frisch Financial Group Inc. now owns 1,049 shares of the retailer's stock valued at $1,045,000 after purchasing an additional 10 shares during the last quarter. Main Street Group LTD increased its holdings in shares of Costco Wholesale by 0.8% in the first quarter. Main Street Group LTD now owns 1,226 shares of the retailer's stock valued at $1,221,000 after purchasing an additional 10 shares during the last quarter. Finally, HORAN Wealth LLC increased its holdings in shares of Costco Wholesale by 1.3% in the first quarter. HORAN Wealth LLC now owns 803 shares of the retailer's stock valued at $769,000 after purchasing an additional 10 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale News Summary

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

• Positive Sentiment: Digital and pharmacy growth offer upside. Costco’s AI-driven search traffic and related online sales are reportedly growing at triple-digit rates, while pharmacy sales have increased nearly 20%. Expanded services, including GLP-1 and fertility offerings, could strengthen member engagement and renewal rates. Costco's AI Search Traffic Soars
• Positive Sentiment: New partnerships may improve member value. NationsBenefits is making healthcare benefits redeemable at more than 600 participating Costco warehouses, potentially increasing traffic and spending among eligible members. NationsBenefits Expands Member Access
• Positive Sentiment: Technical momentum is improving. Market technician Katie Stockton said Costco’s momentum is strengthening heading into November, reinforcing the bullish view following recent gains and the company’s fifth consecutive earnings beat. Costco momentum is improving
• Positive Sentiment: Dividend and special-dividend potential provide shareholder support. Costco’s upcoming $1.47 dividend and speculation about a possible special dividend may attract income-oriented investors, although the regular yield remains modest at the current share price. Costco Special Dividend Prospects
• Neutral Sentiment: ETF activity was a modest technical headwind. ETFs were reported as net sellers of COST on October 23, which could add short-term supply but does not materially change Costco’s operating outlook. ETFs Are Net Sellers of Costco
• Negative Sentiment: Valuation is the central concern. With COST trading at roughly 48 times earnings and near record levels, analysts warn that expectations are extremely high. Mixed consumer and macroeconomic conditions mean even a modest slowdown or weaker guidance could pressure the stock. Costco Remains a Defensive Compounder
• Negative Sentiment: A proposed warehouse cancellation removes a potential expansion catalyst. Costco withdrew its application for a warehouse near Highway 55 in Eagle, although the impact is likely limited unless the decision signals broader permitting or expansion challenges. Costco pulls application for warehouse near Highway 55

Insider Buying and Selling at Costco Wholesale

In other news, EVP Claudine Adamo sold 2,200 shares of the company's stock in a transaction on Tuesday, September 29th. The stock was 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 of the company's stock, valued at $6,534,244.62. This represents a 23.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total value of $1,054,031.00. Following the transaction, the executive vice president owned 3,094 shares of the company's stock, valued at approximately $2,964,701.74. This represents a 26.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale Price Performance

Shares of NASDAQ COST opened at $992.13 on Wednesday. The company has a market capitalization of $439.64 billion, a P/E ratio of 47.79 and a beta of 0.88. The company has a 50 day simple moving average of $940.52 and a 200-day simple moving average of $969.21. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released 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 business had revenue of $95.72 billion during the quarter, compared to analyst estimates of $94.97 billion. The company's revenue was up 11.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $5.87 earnings per share. As a group, research analysts expect that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be given a $1.47 dividend. The ex-dividend date is Friday, October 30th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's payout ratio is currently 28.32%.

Wall Street Analysts Forecast Growth

COST has been the topic of a number of analyst reports. Robert W. Baird set a $1,175.00 price objective on Costco Wholesale in a research report on Friday, September 25th. Oppenheimer restated an "outperform" rating and issued a $1,160.00 target price on shares of Costco Wholesale in a report on Wednesday, September 16th. Argus reaffirmed a "buy" rating and issued a $1,230.00 target price on shares of Costco Wholesale in a research note on Monday, September 28th. Guggenheim reaffirmed a "neutral" rating on shares of Costco Wholesale in a research note on Monday, September 28th. Finally, Evercore reiterated an "outperform" rating on shares of Costco Wholesale in a report on Tuesday, September 22nd. Twenty-five research analysts have rated the stock with a Buy rating, eight have assigned 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 target price of $1,086.19.

Costco Wholesale Company Profile

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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