Allspring Global Investments Increases Stake in Costco Wholesale

Allspring Global Investments Holdings LLC has raised its investment in Costco Wholesale Co. (NASDAQ:COST) by 9.8% during the third quarter, according to reports from Holdings Channel. Following the acquisition of an additional 9,933 shares during this period, the firm now owns a total of 110,781 shares in the retail giant. The value of Allspring Global Investments’ stake in Costco Wholesale is approximately $98,209,000, based on the latest filing with the Securities and Exchange Commission (SEC).

Several other large investors have also made recent changes to their positions in Costco. For example, Redmont Wealth Advisors LLC purchased a new stake in the company during the first quarter, valued around $32,000. Financial Connections Group Inc. significantly increased its stake in the second quarter by 557.1%, now holding 46 shares valued at $39,000 after acquiring an additional 39 shares. Similarly, Bank & Trust Co. acquired a new position in Costco in the second quarter, worth approximately $48,000. Ruedi Wealth Management Inc. raised its stake in the same quarter by 73.5%, owning 59 shares valued at $50,000 after a purchase of 25 additional shares. Summit Securities Group LLC also acquired a new stake in Costco valued at around $50,000 in the second quarter. Currently, institutional investors hold around 68.48% of Costco’s stock.

Insider Transactions at Costco Wholesale

In addition, recent insider activity has been reported at Costco. Executive Vice President Richard A. Galanti sold 500 shares of the company on August 13th, fetching an average price of $863.88, totaling $431,940. Following this sale, he now owns 23,800 shares, valued at about $20,560,344. This sale represents no change in his ownership percentage. The details of this transaction were submitted to the SEC and are accessible for review. Similarly, on August 15th, Director Susan L. Decker sold 620 shares of Costco stock at an average price of $876.50, resulting in a transaction value of $543,430. After this sale, she now owns 11,775 shares valued at $10,320,787.50, also indicating no change in ownership percentage. In total, insiders have sold 11,224 shares in the last three months, amounting to nearly $10 million. Insider ownership currently stands at 0.18% of the company's stock.

Analysts’ Ratings and Price Targets

Recently, several financial analysts have updated their ratings on Costco’s stock. For instance, Morgan Stanley increased its price target for Costco from $855.00 to $950.00 and assigned an “overweight” rating in a report released on September 9th. Furthermore, Bank of America raised its target price from $874.00 to $962.00 while maintaining a “buy” rating. Deutsche Bank also slightly increased its price target from $925.00 to $927.00, with a “buy” recommendation. TD Cowen boosted its target price from $925.00 to $975.00, reinforcing their “buy” rating. BMO Capital Markets reaffirmed an “outperform” rating and increased its target to $980.00 from a previous $950.00. Overall, analysts provide a balanced perspective, with ten recommending a hold and eighteen issuing buy ratings. The average rating for Costco stock is categorized as “Moderate Buy,” with an average price target of $890.07.

Costco's Stock Performance

As of Monday, shares of Costco opened at $889.56. The company has a quick ratio of 0.44, a current ratio of 0.97, and a debt-to-equity ratio of 0.25. Costco's stock has been performing well, with a market capitalization of $394.37 billion, a price-to-earnings ratio of 55.12, and a P/E/G ratio of 5.48, along with a beta of 0.80. Over the past year, Costco shares have seen a low of $540.23 and a high of $923.83. On September 26th, the company reported earnings, achieving an EPS of $5.15 for the quarter, exceeding analyst estimates of $5.05. Year-over-year, Costco's revenue rose by 1%, reaching $79.70 billion, which was slightly below the expected $79.91 billion. Analysts forecast that Costco will post an EPS of 17.74 for the current fiscal year.

Dividend Announcement

Costco has also recently revealed details about its upcoming quarterly dividend, which will be disbursed on November 15th to investors of record as of November 1st. The declared dividend is $1.16 per share, resulting in an annualized dividend of $4.64 and a yield of 0.52%. The ex-dividend date is set for November 1st, and Costco’s current dividend payout ratio is 28.75%.

Overview of Costco Wholesale

Costco Wholesale Corporation operates membership warehouse stores and has locations across multiple countries, including the United States, Canada, Mexico, Japan, and several European nations, among others. The company provides a diverse range of products, both under well-known brands and private labels.

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