Costco Wholesale (NASDAQ:COST) Stock: Insider Claudine Adamo Sells 2,200 Shares

Key Points

  • Insider sale: Costco EVP Claudine Adamo sold 2,200 shares for approximately $2.02 million, reducing her direct holdings by 23.57% to 7,134 shares.
  • Strong quarterly performance: Costco reported $6.75 in earnings per share and $95.72 billion in revenue, surpassing analyst estimates, while revenue increased 11.1% year over year.
  • Valuation remains a concern: Analysts maintain a consensus “Moderate Buy” rating with a $1,046.27 price target, but Costco’s elevated earnings multiple leaves the stock vulnerable to execution concerns.

Costco Wholesale Corporation (NASDAQ:COST - Get Free Report) EVP Claudine Adamo sold 2,200 shares of the stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the transaction, 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Costco Wholesale Trading Down 1.5%

Shares of COST stock opened at $910.34 on Thursday. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. The stock's 50-day moving average price is $933.27 and its 200-day moving average price is $965.95. The stock has a market capitalization of $403.72 billion, a price-to-earnings ratio of 43.85, a price-to-earnings-growth ratio of 3.95 and a beta of 0.86.




Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating analysts' consensus estimates of $6.54 by $0.21. The company had revenue of $95.72 billion during the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%.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. Equities research analysts predict that Costco Wholesale Corporation will post 22.86 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale's dividend payout ratio is currently 28.32%.

Key Headlines Impacting Costco Wholesale

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

  • Positive Sentiment: Costco delivered a strong fiscal fourth quarter, with revenue rising 11.1% year over year to $95.72 billion and earnings of $6.75 per share, exceeding Wall Street expectations. Comparable sales increased 9.4% overall and 10.7% in the U.S., supported by higher customer traffic and larger baskets. Costco's Sales Momentum Builds as Q4 Traffic and Ticket Rise
  • Positive Sentiment: Membership revenue increased approximately 11% to $5.907 billion, while executive-member penetration reached a record level. The recurring fee stream, strong renewal trends, digital growth and expansion of warehouse locations continue to support Costco’s long-term investment case. Costco Collects More Membership Fees
  • Positive Sentiment: Management highlighted continued momentum in fresh food, gas, pharmacy, travel and e-commerce. New or converted Business Center locations, including projects in Haltom City and Kansas City, should broaden Costco’s commercial-customer base and add jobs over time. Costco Continues to Gain Momentum in Fresh Food
  • Neutral Sentiment: Analysts and financial commentators remain divided: Costco’s earnings consistency and renewal rates are viewed as exceptional, but the stock’s elevated valuation leaves limited room for execution mistakes. Daiwa Securities lowered its price target to $950 from $975 while retaining a Neutral rating. Daiwa Securities Adjusts Price Target
  • Negative Sentiment: Executive Vice President Claudine Adamo sold 2,200 shares for approximately $2.02 million, reducing her direct holdings by 23.57%. The filing does not establish a change in Costco’s fundamentals, but insider selling can weigh on sentiment, particularly while the shares trade at a high earnings multiple.

Hedge Funds Weigh In On Costco Wholesale

Large investors have recently made changes to their positions in the company. Bank of America Corp DE purchased a new stake in shares of Costco Wholesale in the second quarter worth approximately $6,781,946,000. Diamant Asset Management Inc. boosted its holdings in Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after acquiring an additional 6,720,130 shares during the period. State Street Corp grew its position in Costco Wholesale by 31.7% in the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock valued at $22,359,224,000 after acquiring an additional 5,749,362 shares during the last quarter. Corient Private Wealth LLC grew its position in Costco Wholesale by 838.9% in the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock valued at $5,282,182,000 after acquiring an additional 5,472,968 shares during the last quarter. Finally, Legal & General Group Plc purchased a new stake in Costco Wholesale in the second quarter worth $2,362,188,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on COST shares. BMO Capital Markets restated an "outperform" rating on shares of Costco Wholesale in a research report on Friday, September 25th. Sanford C. Bernstein lowered their price objective on shares of Costco Wholesale from $1,144.00 to $1,143.00 and set an "outperform" rating for the company in a research report on Friday, September 25th. Bank of America dropped their price objective on shares of Costco Wholesale from $1,200.00 to $1,095.00 and set a "buy" rating for the company in a research note on Wednesday, September 16th. Freedom Broker reduced their target price on shares of Costco Wholesale from $1,030.00 to $1,010.00 and set a "buy" rating on the stock in a report on Friday, September 25th. Finally, Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a research report on Monday. Twenty-two analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $1,046.27.

View Our Latest Stock Report on COST

Costco Wholesale Company Profile

(Get Free Report)

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.

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