Costco Wholesale Corporation $COST Stock: Nisa Investment Advisors LLC Reduces Stake

Nisa Investment Advisors LLC lessened its position in shares of Costco Wholesale Corporation (NASDAQ:COST) by 1.5% during the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 111,955 shares of the retailer’s stock after selling 1,762 shares during the quarter. Costco Wholesale comprises about 0.3% of Nisa Investment Advisors LLC’s investment portfolio, making the stock its 29th largest position. Nisa Investment Advisors LLC’s holdings in Costco Wholesale were worth $101,917,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Sarasin & Partners LLP grew its position in shares of Costco Wholesale by 6.9% during the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock worth $200,372,000 after buying an additional 13,795 shares during the period. Nissay Asset Management Corp Japan lifted its holdings in Costco Wholesale by 4.1% in the second quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer’s stock valued at $148,193,000 after buying an additional 6,200 shares during the period. Silvant Capital Management LLC acquired a new position in Costco Wholesale in the second quarter valued at approximately $16,013,000. Hyperion Asset Management Ltd boosted its stake in Costco Wholesale by 9.0% in the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer’s stock valued at $64,325,000 after acquiring an additional 5,656 shares during the last quarter. Finally, Concurrent Investment Advisors LLC boosted its stake in Costco Wholesale by 15.0% in the second quarter. Concurrent Investment Advisors LLC now owns 22,766 shares of the retailer’s stock valued at $21,297,000 after acquiring an additional 2,974 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have commented on the stock. Weiss Ratings raised shares of Costco Wholesale from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. HSBC raised Costco Wholesale to a “buy” rating in a research note on Friday, September 25th. CICC Research started coverage on Costco Wholesale in a research report on Wednesday. They issued an “outperform” rating and a $1,050.00 price target on the stock. Truist Financial decreased their price objective on Costco Wholesale from $1,011.00 to $955.00 and set a “hold” rating for the company in a research note on Friday, September 25th. Finally, Freedom Broker dropped their price objective on Costco Wholesale from $1,030.00 to $1,010.00 and set a “buy” rating for the company in a report on Friday, September 25th. Twenty-five analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $1,086.19.

More Costco Wholesale News

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

• Positive Sentiment: Value proposition strengthened by inflation: With consumer prices rising 3.7% year over year and gasoline prices up sharply, Costco’s low-margin, high-volume model and reported 14% markup cap could attract shoppers seeking lower prices. Inflation and Costco’s value model
• Positive Sentiment: Analyst support: CICC initiated coverage of Costco with an “Outperform” rating, adding a new bullish view on the company’s long-term prospects. CICC Costco coverage
• Positive Sentiment: Expansion and membership durability: Costco operates 292 of its 939 warehouses outside the U.S. and Puerto Rico, leaving room for overseas membership growth. Articles also highlight the company’s strong customer retention, a feature that supports recurring membership revenue. Costco overseas membership growth
• Positive Sentiment: Digital execution: Costco, Walmart and Target are benefiting from faster delivery, AI-enabled shopping and marketplace partnerships, supporting continued e-commerce growth. Retail digital sales growth
• Neutral Sentiment: ETF purchases and coverage describing Costco’s desserts, pumpkin pie, tote bags and planned South Meridian warehouse opening reinforce brand engagement and store expansion, but are unlikely to materially affect near-term earnings. ETF purchases of Costco
• Neutral Sentiment: Costco’s supplier controls and food-safety procedures may protect customer trust, though attention to food-safety risks highlights an ongoing operational issue for grocery retailers. Costco food-safety procedures
• Negative Sentiment: Valuation risk: Costco trades at the highest earnings multiple among six large retailers in one comparison, despite ranking only fifth in operating margin. That premium leaves less room for execution disappointments and may limit upside. Costco valuation versus rivals
• Negative Sentiment: Walmart’s aggressive holiday-sales ambitions and early Black Friday promotions reinforce competitive pressure, particularly around price and convenience. Walmart holiday competition

Insider Activity at Costco Wholesale

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 sale, the executive vice president owned 7,134 shares in the company, valued at $6,534,244.62. This represents a 23.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, EVP William Richard Wilcox sold 1,100 shares of the 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 completion of the sale, the executive vice president directly owned 3,094 shares of the company’s stock, valued at approximately $2,964,701.74. The trade was a 26.23% decrease in their position. The SEC filing for this sale provides additional information. 0.10% of the stock is owned by insiders.

Costco Wholesale Stock Up 0.4%

Shares of NASDAQ COST opened at $998.31 on Thursday. The stock has a market cap of $442.38 billion, a P/E ratio of 48.09, a P/E/G ratio of 4.25 and a beta of 0.88. The firm has a 50 day moving average price of $935.99 and a 200 day moving average price of $962.90. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50.

Costco Wholesale (NASDAQ:COST) last issued its 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 firm had revenue of $95.72 billion during the quarter, compared to the consensus estimate of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The business’s quarterly revenue was up 11.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $5.87 earnings per share. Analysts expect that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be given a dividend of $1.47 per share. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. 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.