Costco Wholesale (NASDAQ:COST) EVP Claudine Adamo Sells 2,200 Shares of Stock

Key Points

• Costco EVP Claudine Adamo sold 2,200 shares at an average price of $915.93, generating approximately $2.02 million. The transaction reduced her direct ownership by 23.57% to 7,134 shares.
• Costco’s latest quarterly results exceeded expectations, with EPS of $6.75 versus the $6.54 consensus and revenue of $95.72 billion, up 11.1% year over year.
• Shares traded near $910, while analysts maintained a “Moderate Buy” consensus and an average price target of $1,046.27; however, the stock’s roughly 44x P/E ratio highlights its premium valuation.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) EVP Claudine Adamo sold 2,200 shares of the stock in a transaction that occurred 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 completion of the transaction, the executive vice president directly 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Costco Wholesale Stock Performance

Costco Wholesale stock traded down $14.25 during mid-day trading on Wednesday, hitting $910.34. 2,209,027 shares of the company's stock traded hands, compared to its average volume of 2,202,330. 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 one year low of $844.06 and a one year high of $1,096.50. The firm has a 50 day moving average price of $933.61 and a 200 day moving average price of $966.60. The company has a market cap of $403.72 billion, a PE ratio of 43.85, a price-to-earnings-growth ratio of 3.95 and a beta of 0.86.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.54 by $0.21. The company had revenue of $95.72 billion during the quarter, compared to analysts' expectations of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%.The company's revenue for the quarter was up 11.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $5.87 earnings per share. On average, equities analysts forecast that Costco Wholesale Corporation will post 22.8 EPS for the current year.

Costco Wholesale Dividend Announcement

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

Key Costco Wholesale News

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

• Positive Sentiment: Costco’s fiscal fourth-quarter results exceeded expectations, with revenue of $95.72 billion, up 11.1% year over year, and earnings of $6.75 per share versus the $6.54 consensus. Comparable sales rose 9.4%, supported by higher traffic and larger average baskets. Costco’s Sales Momentum Builds as Q4 Traffic and Ticket Rise
• Positive Sentiment: Membership remains a major strength: membership-fee revenue increased approximately 11% to $5.907 billion, while executive membership penetration reached a record. High renewal rates and recurring fee income support Costco’s earnings resilience. Costco Collects More Membership Fees
• Positive Sentiment: U.S. comparable sales grew 10.7%, while fresh food, digital sales, gas, pharmacy, and travel contributed to broad-based momentum. Management also highlighted continued warehouse expansion and international growth opportunities. Costco’s U.S. Comp Sales Lead
• Neutral Sentiment: Some investors view Costco’s retreat from its 52-week high as a potential opportunity, with bullish models projecting further upside. However, the shares remain expensive at roughly 44 times earnings, leaving limited room for execution disappointments. Costco Stock Trades Below Its High
• Negative Sentiment: Analysts have reduced price targets after the earnings beat, including Daiwa’s cut to $950 from $975 while maintaining a Neutral rating. The revisions signal concern that Costco’s premium valuation already reflects much of its strong performance. Daiwa Adjusts Costco Price Target
• Negative Sentiment: Costco is cutting prices on everyday goods to help shoppers cope with inflation. While this may protect traffic and loyalty, it could pressure merchandise margins. Investors are also watching membership trends as changing shopper behavior raises questions about future membership growth. Costco Shoppers Are Changing

Institutional Investors Weigh In On Costco Wholesale

A number of institutional investors and hedge funds have recently modified their holdings of the stock. C M Bidwell & Associates Ltd. acquired a new position in shares of Costco Wholesale in the 2nd quarter valued at $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in Costco Wholesale during the 4th quarter worth about $27,000. Burk Holdings LLC acquired a new stake in Costco Wholesale during the 2nd quarter worth about $30,000. Manning & Napier Advisors LLC acquired a new stake in Costco Wholesale during the 2nd quarter worth about $30,000. Finally, Lifetime Wealth Management P.C. purchased a new stake in Costco Wholesale during the fourth quarter valued at about $28,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on COST. Wells Fargo & Company reduced their price target on shares of Costco Wholesale from $1,000.00 to $950.00 and set an "equal weight" rating for the company in a research note on Friday, September 25th. Oppenheimer reiterated an "outperform" rating and set a $1,160.00 price objective on shares of Costco Wholesale in a research note on Wednesday, September 16th. DA Davidson boosted their target price on Costco Wholesale from $1,000.00 to $1,040.00 and gave the stock a "neutral" rating in a report on Friday, September 25th. Jefferies Financial Group decreased their price target on Costco Wholesale from $1,130.00 to $1,100.00 in a research note on Friday, September 25th. Finally, BMO Capital Markets reaffirmed an "outperform" rating on shares of Costco Wholesale in a research note on Friday, September 25th. Twenty-two analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Costco Wholesale presently has a consensus rating of "Moderate Buy" and an average price target of $1,046.27.

About Costco Wholesale

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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