Generali Asset Management SPA SGR boosted its stake in shares of Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 6.3% in the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 22,000 shares of the retailer’s stock after acquiring an additional 1,309 shares during the period. Generali Asset Management SPA SGR’s holdings in Costco Wholesale were worth $20,027,000 at the end of the most recent quarter.
Other institutional investors and hedge funds also recently bought and sold shares of the company. Bank of America Corp DE bought a new position in shares of Costco Wholesale during the 2nd quarter valued at about $6,781,946,000. State Street Corp grew its position in shares of Costco Wholesale by 31.7% during the second quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock valued at $22,359,224,000 after purchasing an additional 5,749,362 shares in the last quarter. Legal & General Group Plc bought a new stake in shares of Costco Wholesale in the second quarter worth about $2,362,188,000. Ascentis Wealth Management LLC increased its holdings in shares of Costco Wholesale by 103,637.0% in the second quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer’s stock worth $2,549,616,000 after purchasing an additional 2,497,652 shares during the last quarter. Finally, Corient Private Wealth LP bought a new stake in shares of Costco Wholesale in the second quarter worth about $726,689,000. 68.48% of the stock is currently owned by institutional investors.
Key Headlines Impacting Costco Wholesale
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
Analyst Upgrades and Downgrades
A number of equities analysts recently commented on COST shares. Robert W. Baird set a $1,175.00 price target on Costco Wholesale in a research note on Friday, September 25th. UBS Group reaffirmed a “buy” rating on shares of Costco Wholesale in a research note on Thursday, September 17th. Sanford C. Bernstein reduced their price objective on Costco Wholesale from $1,144.00 to $1,143.00 and set an “outperform” rating on the stock in a research note on Friday, September 25th. BTIG Research reaffirmed a “buy” rating and set a $1,125.00 price objective on shares of Costco Wholesale in a report on Wednesday, September 23rd. Finally, Argus reiterated a “buy” rating and set a $1,230.00 target price on shares of Costco Wholesale in a research report on Monday, September 28th. Twenty-five equities 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 data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $1,086.19.
View Our Latest Research Report on COST
Costco Wholesale Trading Down 1.3%
Shares of COST opened at $992.13 on Wednesday. The company’s fifty day simple moving average is $940.52 and its 200-day simple moving average is $969.21. The company has a market cap of $439.64 billion, a P/E ratio of 47.79 and a beta of 0.88. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50.
Costco Wholesale (NASDAQ:COST – Get Free Report) last released its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. The firm had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion. During the same period in the prior year, the firm posted $5.87 earnings per share. Costco Wholesale’s revenue for the quarter was up 11.1% on a year-over-year basis. Analysts predict that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.
Costco Wholesale Announces Dividend
The company 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 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Friday, October 30th. Costco Wholesale’s dividend payout ratio is 28.32%.
Insider Activity
In other news, EVP Claudine Adamo sold 2,200 shares of the company’s stock in a transaction that occurred on 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 transaction, the executive vice president owned 7,134 shares of the company’s stock, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction that occurred 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 completion of the sale, the executive vice president owned 3,094 shares in the company, valued at approximately $2,964,701.74. The trade was 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 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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