Costco Wholesale Corporation $COST Stock: Martin Capital Advisors LLP Increases Holdings

Martin Capital Advisors LLP boosted its stake in shares of Costco Wholesale Corporation (NASDAQ:COST) by 66.7% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,682 shares of the retailer’s stock after purchasing an additional 3,074 shares during the quarter. Costco Wholesale accounts for approximately 3.7% of Martin Capital Advisors LLP’s holdings, making the stock its 6th biggest position. Martin Capital Advisors LLP’s holdings in Costco Wholesale were worth $6,993,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in COST. Contravisory Investment Management Inc. raised its stake in shares of Costco Wholesale by 107.7% in the third quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer’s stock valued at $25,000 after purchasing an additional 14 shares in the last quarter. C M Bidwell & Associates Ltd. acquired a new position in Costco Wholesale in the second quarter worth about $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in Costco Wholesale during the fourth quarter valued at approximately $27,000. Burk Holdings LLC bought a new stake in shares of Costco Wholesale in the 2nd quarter valued at approximately $30,000. Finally, Manning & Napier Advisors LLC bought a new stake in shares of Costco Wholesale in the 2nd quarter valued at approximately $30,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Defensive-sector rotation: Higher inflation prompted investors to move toward companies selling everyday necessities. Costco benefited alongside Walmart and Target as a perceived defensive retailer. Walmart Advances as Inflation Data Sends Money Into Defensives
• Positive Sentiment: Strong September sales momentum: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales rose 19%. The figures reinforce the strength of its membership, value-focused pricing and e-commerce operations. Costco September Sales Jump and Faster Digital Growth
• Positive Sentiment: Dividend declared: Costco’s board approved a quarterly cash dividend of $1.47 per share, payable November 13 to shareholders of record October 30. The payout provides a modest shareholder return and signals continued confidence in cash generation. Costco Announces Quarterly Cash Dividend
• Positive Sentiment: Expansion and balance-sheet support: Analysts highlighted Costco’s approximately $21.3 billion liquidity cushion, manageable debt and robust cash flows as advantages for funding new warehouses and digital investments. A Florida city council also gave an early approval for a new store. How Costco’s Balance Sheet Gives It an Edge
• Positive Sentiment: Positive earnings expectations: Erste Group raised its FY2027 EPS forecast to $22.80 from $22.67 and expects $25.01 for FY2028, modestly above the company’s current-year consensus outlook. Costco analyst estimates
• Neutral Sentiment: Articles highlighting Costco’s influence on home-buying decisions, younger membership growth and exclusive seasonal products reinforce brand engagement but are unlikely to materially change near-term earnings expectations. Inside the Costco Effect
• Negative Sentiment: Costco continues to trade at a demanding valuation, with a high price-to-earnings multiple. That leaves COST vulnerable if sales growth, membership trends or consumer spending weaken.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. Roth Capital reiterated a “sell” rating and set a $781.00 price objective on shares of Costco Wholesale in a research note on Friday, September 25th. Mizuho lowered their target price on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating on the stock in a report on Friday, September 25th. Citigroup began coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 target price for the company. Sanford C. Bernstein cut their price target on shares of Costco Wholesale from $1,144.00 to $1,143.00 and set an “outperform” rating for the company in a report on Friday, September 25th. Finally, Deutsche Bank Aktiengesellschaft dropped their price objective on shares of Costco Wholesale from $1,091.00 to $1,079.00 and set a “buy” rating for the company in a report on Monday, September 28th. Twenty-three equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $1,081.79.

Insider Transactions at Costco Wholesale

In other news, 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 completion of the transaction, the executive vice president directly owned 3,094 shares in the company, valued at approximately $2,964,701.74. The trade was a 26.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Claudine Adamo sold 2,200 shares of the company’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the sale, the executive vice president directly owned 7,134 shares of the company’s stock, valued at approximately $6,534,244.62. This trade represents a 23.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.10% of the stock is currently owned by company insiders.

Costco Wholesale Stock Up 2.9%

NASDAQ:COST opened at $982.00 on Thursday. The company has a market cap of $435.15 billion, a price-to-earnings ratio of 47.30, a P/E/G ratio of 4.08 and a beta of 0.88. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. The stock’s fifty day moving average price is $931.75 and its two-hundred day moving average price is $963.13.

Costco Wholesale (NASDAQ:COST) last posted its quarterly 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. The business had revenue of $95.72 billion for 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 firm’s quarterly revenue was up 11.1% compared to the same quarter last year. During the same quarter last year, the business earned $5.87 earnings per share. On average, analysts anticipate that Costco Wholesale Corporation will post 22.70 EPS for the current year.

Costco Wholesale Dividend Announcement

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

Costco Wholesale Profile

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.