Retirement Guys Formula LLC has reduced its holdings in Costco Wholesale Corporation (NASDAQ: COST) by 38.6% during the third quarter of 2023, according to data from Holdings Channel. The firm sold 1,154 shares, leaving it with 1,833 shares valued at approximately $1.7 million following its most recent filing with the Securities and Exchange Commission (SEC).
Several other large investors have also adjusted their positions in Costco recently. For instance, Birchbrook Inc. increased its stake in the retailer by 2.5% in the first quarter, acquiring an additional 11 shares to reach a total of 456 shares, with a current value of around $431,000. Similarly, Ridgewood Investments LLC raised its holdings by 7.4% during the second quarter, now owning 159 shares valued at $157,000 after purchasing an additional 11 shares.
The investment landscape for Costco is vibrant, with Wagner Wealth Management LLC increasing its stake by 3.4% and Hobbs Wealth Management LLC lifting its position by 4.4% during the same period. Busey Bank also grew its holdings by 0.4% in the third quarter, now owning 2,651 shares valued at approximately $2.45 million. Currently, institutional investors hold 68.48% of Costco’s stock.
Analysts Adjust Price Targets for Costco
Recent analyst reports have also impacted investor sentiment. Truist Financial downgraded its price target for Costco from $1,033.00 to $926.00, maintaining a “hold” rating. In contrast, UBS Group reiterated a “buy” rating, emphasizing confidence in the stock’s potential. Wells Fargo & Company lowered its price target from $1,000.00 to $900.00, while Argus increased its target from $1,170.00 to $1,200.00, maintaining a “buy” rating.
With 19 analysts rating the stock as a buy and 13 assigning hold ratings, the average recommendation stands at “Moderate Buy” with a price target of $992.08, according to MarketBeat.
Costco’s Recent Performance Metrics
As of the latest trading session, Costco shares opened at $862.34. The company recorded a one-year low of $844.06 and a high of $1,078.23. Its market capitalization stands at $382.77 billion, with a P/E ratio of 46.19 and a price-to-earnings-growth ratio of 5.17.
Costco recently reported its earnings results for the quarter ending in December, posting $4.34 earnings per share, surpassing analysts’ expectations of $4.27 by $0.07. The company achieved revenue of $67.31 billion, exceeding the forecast of $67.03 billion. Additionally, Costco’s quarterly revenue showed an 8.3% increase year-over-year.
In terms of dividends, Costco declared a quarterly dividend of $1.30 per share, paid on November 14, following an ex-dividend date of October 31. This translates to an annualized dividend of $5.20 and a yield of 0.6%.
Costco’s business model focuses on low-margin sales and annual membership fees, fostering strong customer loyalty. The company operates a global chain of membership-only warehouse clubs, offering a variety of products from groceries to electronics, alongside services such as gasoline stations and pharmacies.
In insider trading news, Claudine Adamo, Executive Vice President, sold 2,700 shares for approximately $2.53 million, while William Richard Wilcox, also an EVP, sold 2,400 shares valued at about $2.23 million. Over the past three months, insiders have sold a total of 8,946 shares worth approximately $8.18 million.
As Costco continues to adapt to market changes and shareholder expectations, its performance and strategic decisions will remain closely monitored by investors and analysts alike.
