Retirement Guys Formula LLC has reduced its holdings in Costco Wholesale Corporation (NASDAQ: COST) by a significant **38.6%** during the third quarter of 2023. According to data from Holdings Channel, the firm now owns **1,833 shares** of Costco after selling **1,154 shares** in that period, with the remaining stake valued at approximately **$1,697,000** as reported in its latest filing with the Securities and Exchange Commission.
This divestment comes as part of a broader trend among institutional investors regarding Costco’s stock. For instance, Birchbrook Inc. increased its position by **2.5%** in the first quarter, bringing its total holdings to **456 shares**, valued at **$431,000** following the acquisition of an additional **11 shares**. Similarly, Ridgewood Investments LLC raised its stake by **7.4%** during the second quarter, owning **159 shares** worth **$157,000** after a similar purchase. Wagner Wealth Management LLC and Hobbs Wealth Management LLC also reported increases in their respective positions, further illustrating the mixed sentiment among large shareholders.
As of now, institutional investors collectively own **68.48%** of Costco’s stock, highlighting the significant institutional interest in the company.
Market Analysts Weigh In on Costco Stock
Several analysts have recently adjusted their price targets and ratings for Costco shares. **Truist Financial** lowered its price target from **$1,033.00** to **$926.00**, maintaining a “hold” rating. In contrast, the **UBS Group** reiterated a “buy” rating, indicating confidence in the stock’s future performance. Additionally, **Wells Fargo & Company** reduced its target from **$1,000.00** to **$900.00** while assigning an “equal weight” rating.
MarketBeat data reveals that **19 investment analysts** currently rate Costco shares as a “buy,” while **13 have assigned a hold rating** and **one has given a sell rating**. The average rating stands at “Moderate Buy,” with a price target of approximately **$992.08**.
Costco’s Stock Performance and Earnings Report
Costco’s stock opened at **$862.34** on Friday, reflecting a **0.4%** decline. The company has experienced volatility over the past year, with a low of **$844.06** and a high of **$1,078.23**. Recent financial metrics show a **debt-to-equity ratio** of **0.19**, a **current ratio** of **1.04**, and a **quick ratio** of **0.53**. With a market capitalization of **$382.77 billion** and a **P/E ratio** of **46.19**, Costco remains a significant player in the retail sector.
On **December 11, 2023**, Costco reported earnings of **$4.34** per share for the quarter, exceeding the consensus estimate of **$4.27** by **$0.07**. The company posted revenues of **$67.31 billion**, surpassing expectations of **$67.03 billion**, reflecting an **8.3%** increase year-over-year. This growth is notable, considering the previous year’s earnings per share were **$4.04**.
Costco also announced a quarterly dividend of **$1.30** per share, paid to shareholders of record on **October 31, 2023**. This results in an annualized dividend of **$5.20** and a yield of **0.6%**, with a dividend payout ratio of **27.85%**.
In terms of insider transactions, **Claudine Adamo**, Executive Vice President, sold **2,700 shares** on **October 24, 2023**, for approximately **$2,526,336.00**. Following this transaction, she retained **6,851 shares** valued at about **$6,410,343.68**. Another executive, **William Richard Wilcox**, sold **2,400 shares** on **November 7, 2023**, for roughly **$2,232,312.00**, reducing his ownership significantly.
Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs, offering a diverse range of products including groceries, electronics, and household goods, while also providing ancillary services such as pharmacies and gas stations. Its business model relies heavily on annual membership fees and high-volume sales, fostering strong customer loyalty among both consumers and small-business buyers.
For those interested in further updates on Costco and its stock performance, Holdings Channel provides the latest filings and insider trades related to Costco Wholesale Corporation.
