Costco Wholesale Corporation $COST Stock: Sterling Capital Management LLC Reduces Position

Sterling Capital Management LLC trimmed its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST) by 24.8% during the 3rd quarter, Holdings Channel reports. The institutional investor owned 13,681 shares of the retailer’s stock after selling 4,504 shares during the period. Sterling Capital Management LLC’s holdings in Costco Wholesale were worth $12,454,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. Contravisory Investment Management Inc. grew its stake in shares of Costco Wholesale by 107.7% during the third 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 shares of Costco Wholesale during the second quarter valued at about $28,000. Burk Holdings LLC acquired a new position in shares of Costco Wholesale during the second quarter valued at about $30,000. Manning & Napier Advisors LLC acquired a new position in shares of Costco Wholesale during the second quarter valued at about $30,000. Finally, Bullseye Investment Management LLC purchased a new position in shares of Costco Wholesale in the 2nd quarter valued at approximately $35,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Robert W. Baird set a $1,175.00 target price on shares of Costco Wholesale in a research note on Friday, September 25th. Royal Bank Of Canada restated a “sector perform” rating and set a $1,000.00 price target on shares of Costco Wholesale in a research note on Friday, October 9th. Wells Fargo & Company decreased 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 report on Friday, September 25th. Truist Financial decreased their price target on shares of Costco Wholesale from $1,011.00 to $955.00 and set a “hold” rating for the company in a report on Friday, September 25th. Finally, DA Davidson lifted their price objective on shares of Costco Wholesale from $1,000.00 to $1,040.00 and gave the stock a “neutral” rating in a research note on Friday, September 25th. Twenty-five investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $1,086.19.

Insider Activity

In related news, EVP Claudine Adamo sold 2,200 shares of the firm’s stock in a transaction dated 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 sale, 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 legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of Costco Wholesale stock in a transaction that occurred on 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 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. Insiders own 0.10% of the company’s stock.

Key Costco Wholesale News

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

• Positive Sentiment: Analyst support remains strong. CICC initiated coverage with an Outperform rating, while Tigress Financial raised its price target to $1,250. Erste Group also increased its FY2028 EPS estimate to $25.07 from $25.01, above the current-year consensus estimate of $22.70. CICC coverage article Tigress Financial price target article
• Positive Sentiment: Growth and customer engagement remain key positives. Costco’s membership model has delivered substantial long-term shareholder returns, and the company is reportedly using purchasing data to better target high-spending members. REJURAN Cosmetics is also expanding through Costco’s first Beauty Table program, potentially adding traffic and broadening its premium beauty offering. Costco customer spending article REJURAN retail expansion article
• Neutral Sentiment: Long-term growth screens are favorable, and analysts’ average recommendation is equivalent to a Buy. However, these reports largely reiterate existing optimism rather than provide a new earnings catalyst. Zacks growth stock article
• Negative Sentiment: Valuation and competition remain concerns. Costco trades at a high earnings multiple, leaving the stock sensitive to profit-taking or disappointing growth. Kroger is planning major investments and price cuts to win back market share from Costco and Walmart, which could intensify grocery competition and pressure margins. Kroger competition article

Costco Wholesale Trading Down 1.5%

NASDAQ COST opened at $1,003.32 on Friday. The company has a market capitalization of $444.60 billion, a PE ratio of 48.33, a P/E/G ratio of 4.29 and a beta of 0.88. The company has a fifty day moving average of $937.96 and a 200 day moving average of $963.21. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating the consensus estimate of $6.54 by $0.21. The company had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The firm’s revenue was up 11.1% on a year-over-year basis. During the same period in the prior year, the company earned $5.87 earnings per share. Research analysts forecast that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.

Costco Wholesale Announces Dividend

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

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.