Retirement Guys Formula LLC has significantly reduced its investment in Costco Wholesale Corporation, trimming its stock position by 38.6% in the third quarter of 2023. According to Holdings Channel, the firm now holds 1,833 shares of the retailer, having sold 1,154 shares during this period, bringing the total value of its holdings to approximately $1.7 million as per its latest filing with the Securities and Exchange Commission.
This reduction comes as part of a broader trend among institutional investors. Other significant stakeholders have also adjusted their positions in Costco. For instance, Birchbrook Inc. increased its stake by 2.5% in the first quarter, acquiring an additional 11 shares to reach 456 shares valued at $431,000. Similarly, Ridgewood Investments LLC raised its holdings by 7.4% in the second quarter, now owning 159 shares valued at $157,000 after purchasing an additional 11 shares.
Other firms, such as Wagner Wealth Management LLC and Hobbs Wealth Management LLC, also reported increases in their stakes, further illustrating the fluctuating interest in Costco stock among investment entities. Overall, institutional investors currently own about 68.48% of Costco’s stock.
Analyst Ratings and Market Performance
Recent analyst ratings reflect a mixed outlook for Costco. Truist Financial has lowered its price target from $1,033.00 to $926.00 while maintaining a “hold” rating. Conversely, UBS Group reiterated a “buy” rating, showcasing confidence in Costco’s long-term prospects. Wells Fargo & Company has also adjusted its price target from $1,000.00 to $900.00, reflecting a cautious approach.
As of the latest data from MarketBeat, Costco has garnered an average rating of “Moderate Buy,” with 19 analysts recommending a buy, while 13 analysts suggest holding the stock, and one has issued a sell rating. The average price target is set at $992.08.
On the trading side, Costco shares opened at $862.34 recently, reflecting a 0.4% decline. The company’s stock has seen a 52-week range between $844.06 and $1,078.23.
Recent Earnings and Dividend Declarations
Costco reported its latest earnings results on December 11, 2023, revealing a positive performance. The retailer achieved $4.34 earnings per share for the quarter, surpassing analysts’ expectations of $4.27 by $0.07. Revenue for the quarter was reported at $67.31 billion, exceeding the forecast of $67.03 billion. This marked an 8.3% year-on-year increase in revenue.
Additionally, Costco recently declared a quarterly dividend of $1.30 per share, which was distributed to shareholders on November 14, 2023. The annualized dividend stands at $5.20, yielding approximately 0.6%. The company’s dividend payout ratio is currently 27.85%.
In recent insider transactions, Claudine Adamo, Executive Vice President, sold 2,700 shares on October 24, 2023 for a total of $2,526,336. Following this sale, she retains 6,851 shares valued at about $6.41 million. Another Executive Vice President, William Richard Wilcox, also sold 2,400 shares for a total of $2,232,312 on November 7, reducing his ownership significantly.
As Costco continues to navigate the market landscape, the adjustments made by institutional investors and the outlook from analysts will be key factors to watch in the coming months. The company remains a significant player in the retail sector, known for its unique membership model and extensive product offerings across various categories.
