Motley Fool Asset Management LLC cut its holdings in Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 1.9% in the 3rd quarter, HoldingsChannel.com reports. The fund owned 47,780 shares of the retailer’s stock after selling 927 shares during the period. Costco Wholesale comprises approximately 1.6% of Motley Fool Asset Management LLC’s holdings, making the stock its 16th largest position. Motley Fool Asset Management LLC’s holdings in Costco Wholesale were worth $43,496,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors also recently made changes to their positions in the company. LaFleur & Godfrey LLC grew its stake in shares of Costco Wholesale by 1,588.6% in the 3rd quarter. LaFleur & Godfrey LLC now owns 6,231 shares of the retailer’s stock valued at $5,672,000 after buying an additional 5,862 shares during the period. North Dakota State Investment Board raised its stake in Costco Wholesale by 3.6% during the 3rd quarter. North Dakota State Investment Board now owns 13,592 shares of the retailer’s stock worth $12,373,000 after buying an additional 467 shares during the period. Financial Insights Inc. raised its stake in Costco Wholesale by 10.3% during the 3rd quarter. Financial Insights Inc. now owns 2,904 shares of the retailer’s stock worth $2,644,000 after buying an additional 272 shares during the period. Conning Inc. boosted its holdings in Costco Wholesale by 5.3% in the third quarter. Conning Inc. now owns 6,616 shares of the retailer’s stock worth $6,023,000 after acquiring an additional 335 shares in the last quarter. Finally, AMI Investment Management Inc. bought a new position in Costco Wholesale in the third quarter worth approximately $266,000. 68.48% of the stock is owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth
A number of brokerages have commented on COST. Jefferies Financial Group reduced their price objective on Costco Wholesale from $1,130.00 to $1,100.00 in a research note on Friday, September 25th. Raymond James Financial reduced their price target on shares of Costco Wholesale from $1,100.00 to $1,050.00 and set an “outperform” rating for the company in a research report on Friday, September 25th. Deutsche Bank Aktiengesellschaft reduced their price target on shares of Costco Wholesale from $1,091.00 to $1,079.00 and set a “buy” rating for the company in a research report on Monday, September 28th. Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a research note on Monday, September 28th. Finally, BMO Capital Markets restated an “outperform” rating on shares of Costco Wholesale in a report on Friday, September 25th. Twenty-five research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Costco Wholesale has an average rating of “Moderate Buy” and an average price target of $1,086.19.
Read Our Latest Report on COST
Costco Wholesale Stock Performance
Shares of Costco Wholesale stock opened at $982.73 on Thursday. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. The business has a 50 day moving average price of $940.95 and a 200-day moving average price of $969.55. The company has a market cap of $435.48 billion, a PE ratio of 47.34, a price-to-earnings-growth ratio of 4.29 and a beta of 0.88.
Costco Wholesale (NASDAQ:COST – Get Free Report) last announced its 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 return on equity of 27.60% and a net margin of 3.04%. The company had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion. During the same quarter in the previous year, the firm earned $5.87 earnings per share. Costco Wholesale’s quarterly revenue was up 11.1% on a year-over-year basis. Equities analysts anticipate that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.
Costco Wholesale Dividend Announcement
The company 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. 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 payout ratio is currently 28.32%.
Insiders Place Their Bets
In related news, EVP Claudine Adamo sold 2,200 shares of the firm’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP William Richard Wilcox sold 1,100 shares of the business’s stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the transaction, 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. The SEC filing for this sale provides additional information. 0.10% of the stock is owned by insiders.
Key Headlines Impacting Costco Wholesale
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Costco expanded its healthcare offering through a NationsBenefits partnership, allowing members to redeem eligible benefits in real time at checkout across more than 600 U.S. warehouses. The initiative could increase member engagement, convenience and store traffic while supporting Costco’s growing healthcare business. Costco brings real-time health benefit checkouts to more than 600 stores
- Positive Sentiment: The retailer opened a new warehouse in Western New York, adding capacity and reinforcing its long-term strategy of expanding its membership base and geographic footprint. Costco opens its doors in Western New York
- Positive Sentiment: Recent coverage highlights Costco’s fifth consecutive earnings beat, strong pharmacy growth and improving digital conversions, including gains from AI-powered website search. Analysts also point to improving technical momentum heading into November. Costco momentum is improving heading into November
- Neutral Sentiment: Promotional offers providing new Gold Star members with a $45 digital Costco Shop Card for a $65 membership may help attract sign-ups, although the near-term effect on revenue and margins is unclear. New Costco Gold Star membership promotion
- Neutral Sentiment: Long-term investment commentary remains broadly bullish, with Costco viewed as a defensive compounder and a potential healthcare or Medicare disrupter. However, these are forward-looking theses rather than new financial guidance.
- Negative Sentiment: Analysts continue to question Costco’s valuation near $1,000 per share, arguing that its premium multiple already reflects substantial growth. Expensive valuation and mixed macroeconomic conditions could pressure the stock if sales or margins merely meet expectations. Costco valuation remains a head scratcher
- Negative Sentiment: Exchange-traded funds were reported as net sellers of COST, creating modest technical pressure. Separately, Costco withdrew an application for a proposed Idaho warehouse, highlighting that expansion plans can face local or regulatory setbacks. Costco sees net ETF selling
- Negative Sentiment: The upcoming $1.47 dividend offers a relatively low yield at Costco’s current share price, limiting its appeal to income-focused investors and reducing support from dividend-driven buying.
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.
Featured Stories
- Five stocks we like better than Costco Wholesale
- Boeing Got Its MAX 10 Approval, But Q3 Delivered a Reality Check
- The Invisible AI Backbone: Corning’s AI Fiber Play
- Heavy Metal: Why Nucor Could Be an Overlooked AI Infrastructure Winner
- Why Tesla’s Upside Is About More Than a SpaceX Merger
Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST – Free Report).
Receive News & Ratings for Costco Wholesale Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Costco Wholesale and related companies with MarketBeat.com's FREE daily email newsletter.
