Lord Abbett & Co. LLC Reduces Stake in Costco Wholesale Co. (NASDAQ:COST)

During the third quarter, Lord Abbett & Co. LLC decreased its ownership in Costco Wholesale Co. (NASDAQ:COST - Free Report) by 13.3%. According to their recent 13F filing with the Securities and Exchange Commission (SEC), the firm now holds 213,972 shares of Costco after selling 32,726 shares during this period. As per the filing, Lord Abbett & Co. LLC's holdings amounted to approximately $189,690,000.

Recently, several other institutional investors also adjusted their positions in COST. For instance, RPg Family Wealth Advisory LLC acquired a new stake in Costco shares worth $29,000 in the third quarter. Moreover, Financial Connections Group Inc. significantly increased its stake by 557.1% in the second quarter, now owning 46 shares valued at $39,000 after purchasing an additional 39 shares last quarter. In the second quarter, Summit Securities Group LLC also bought a new stake in Costco for about $50,000. Similarly, Mowery & Schoenfeld Wealth Management LLC invested approximately $58,000 in a new position during the third quarter. Fairway Wealth LLC raised its stake in Costco by 230.0% in the second quarter, now holding 66 shares worth $56,000 after adding 46 shares to their holdings. Gathered data indicates that hedge funds and institutional investors collectively own 68.48% of Costco’s stock.

Analysts Expect Positive Growth for Costco

Several brokerages have recently provided updates on Costco. Evercore ISI has raised its price target from $1,019.00 to $1,020.00, maintaining an “overweight” rating. Roth MKM increased its price target from $755.00 to $907.00, while Jefferies Financial Group raised its price objective from $1,050.00 to $1,145.00, assigning a “buy” rating. Conversely, StockNews.com downgraded Costco from a “buy” to a “hold” rating. Robert W. Baird also upped their target price from $975.00 to $1,075.00, reiterating an “outperform” rating. Data from MarketBeat.com indicates that ten analysts rate Costco with a hold, while nineteen have provided a buy rating, giving the company a consensus rating of “Moderate Buy” with an average price target of $988.46.

Recent Insider Transactions

In recent insider trading news, Costco’s Executive Vice President, Richard A. Galanti, sold 1,416 shares on October 24th at an average price of $894.68, leading to a total transaction amount of about $1,266,866.88. Post-sale, he holds 27,400 shares worth approximately $24,514,232. This sale reflected a 4.91% decline in his ownership. Also, on September 30th, EVP Claudine Adamo sold 3,200 shares at an average price of $888.99, totaling around $2,844,768.00. After this transaction, Adamo owns 8,630 shares valued at $7,671,983.70, marking a 27.05% reduction in her ownership. In the past ninety days, insiders have sold 11,016 shares for roughly $9,826,115. Insiders currently control about 0.18% of Costco’s shares.

Costco Wholesale's Market Performance

As of Friday, Costco's stock opened at $989.35. The company’s 50-day simple moving average stands at $926.84, while the 200-day average is $884.70. In the past year, Costco has reached a low of $630.30 and a high of $1,007.80, contributing to a market capitalization of $438.35 billion. The price-to-earnings (P/E) ratio for the company is at 59.71, with a P/E/G ratio of 6.05 and a beta of 0.82. Costco exhibits a quick ratio of 0.44, a current ratio of 0.97, and a debt-to-equity ratio of 0.25.

Costco last announced its quarterly earnings on September 26th, reporting an EPS of $5.15, exceeding analysts’ expectations of $5.05 by $0.10. The company’s revenue for the quarter was reported at $79.70 billion, slightly below estimates of $79.91 billion. With a return on equity of 31.05% and a net margin of 2.90%, Costco’s revenue reflected a 1.0% increase compared to the same quarter in the previous year. Analysts forecast Costco will achieve 17.77 EPS for the current fiscal year.

Dividend News from Costco Wholesale

Recently, Costco announced a quarterly dividend of $1.16 per share, which was paid on November 15th to shareholders who were on record by November 1st. The ex-dividend date was also established as November 1st. This results in an annualized dividend of $4.64, translating to a yield of 0.47%, with the company maintaining a payout ratio of 28.00%.

About Costco Wholesale

Costco Wholesale Corporation operates a chain of membership warehouse stores in various locations, including the United States, Puerto Rico, Canada, Mexico, Japan, and more. The business provides a diverse range of branded and private-label products across multiple merchandise categories.

Costco, Stocks, Investment