Vestor Capital LLC Buys 2,864 Shares of Costco Wholesale Corporation $COST

Key Points

• Vestor Capital increased its Costco stake by 443.3% in the third quarter, buying 2,864 shares and bringing its holdings to 3,510 shares, valued at about $3.2 million.
• Analysts overall rate Costco a “Moderate Buy,” with an average price target of $1,090.55, though ratings range from Strong Buy to Sell.
• Costco beat quarterly earnings and revenue expectations: EPS was $6.75 versus $6.54 expected, while revenue rose 11.1% year over year to $95.72 billion. October digital sales also grew 22.5%.

Vestor Capital LLC increased its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 443.3% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 3,510 shares of the retailer's stock after purchasing an additional 2,864 shares during the period. Vestor Capital LLC's holdings in Costco Wholesale were worth $3,195,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Contravisory Investment Management Inc. boosted its stake in Costco Wholesale by 107.7% during the 3rd quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer's stock worth $25,000 after acquiring an additional 14 shares during the last quarter. C M Bidwell & Associates Ltd. acquired a new position in Costco Wholesale during the second quarter valued at approximately $28,000. Burk Holdings LLC bought a new stake in Costco Wholesale in the second quarter valued at approximately $30,000. Manning & Napier Advisors LLC bought a new stake in Costco Wholesale in the second quarter valued at approximately $30,000. Finally, John Boyer Inc. bought a new stake in Costco Wholesale in the third quarter valued at approximately $32,000. Institutional investors own 68.48% of the company's stock.

Wall Street Analyst Weigh In

COST has been the topic of several analyst reports. Evercore reissued an "outperform" rating on shares of Costco Wholesale in a research report on Tuesday, September 22nd. Oppenheimer restated an "outperform" rating and issued a $1,160.00 price objective on shares of Costco Wholesale in a research report on Wednesday, September 16th. Roth Capital reaffirmed a "sell" rating and set a $781.00 price objective on shares of Costco Wholesale in a research note on Friday, September 25th. Weiss Ratings downgraded Costco Wholesale from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday, November 4th. Finally, Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a report on Monday, September 28th. One analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $1,090.55.

Key Costco Wholesale News

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

• Positive Sentiment: Costco’s digital sales rose 22.5% in October, outpacing store comparable sales. Delivery partnerships, personalization and stronger online engagement are helping the company capture changing shopping habits, which could support sales growth. Costco's Digital Sales Outpace Store Comps as Shopping Evolves
• Neutral Sentiment: Costco closed a California warehouse after 37 years and opened a replacement location about a mile away. The new site is 152,000 square feet; this appears to be a relocation rather than a meaningful reduction in the company’s local presence. Costco closes popular California store location after 37 years
• Neutral Sentiment: An article about Costco’s new Medicare Advantage plan highlights a potential consumer trade-off: a member who later wants Medigap coverage may face health questions or be denied after a 12-month trial right ends. The report focuses on enrollment considerations and does not quantify a financial effect for Costco. Medicare Advantage plan and Medigap considerations

Costco Wholesale Stock Performance

Shares of COST stock opened at $1,066.18 on Tuesday. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. The company has a market capitalization of $472.46 billion, a P/E ratio of 51.36, a price-to-earnings-growth ratio of 4.47 and a beta of 0.85. The company's 50 day moving average price is $954.83 and its two-hundred day moving average price is $972.91. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating analysts' consensus estimates of $6.54 by $0.21. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The firm had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. During the same quarter in the previous year, the firm posted $5.87 earnings per share. The business's revenue was up 11.1% on a year-over-year basis. On average, analysts expect that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

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

Insiders Place Their Bets

In other news, EVP Claudine Adamo sold 2,200 shares of the business's stock in a transaction dated 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 sale, the executive vice president directly owned 7,134 shares in the company, valued at $6,534,244.62. The trade was a 23.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, 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 value of $1,054,031.00. Following the completion of the sale, the executive vice president owned 3,094 shares in the company, valued at approximately $2,964,701.74. This trade represents a 26.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is currently owned by corporate insiders.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally low prices. Its products include groceries, fresh foods, appliances, electronics, apparel, furniture, and household goods, as well as its Kirkland Signature private-label line.

The company also provides services such as gasoline stations, pharmacies, optical and hearing-aid centers, food courts, and travel offerings. Costco serves members through warehouses and online channels.

Founded in 1983 in Seattle, Costco has expanded across North America, Europe, Asia, and Australia.

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