J. Safra Sarasin Holding AG has reduced its stake in Costco Wholesale Corporation by selling 759 shares during the third quarter of 2023. This represents a decrease of 1.6%, leaving the firm with a total of 47,948 shares valued at approximately $44,356,000 at the end of the reporting period, according to HoldingsChannel.
Investment activity surrounding Costco has seen significant changes among various institutional investors. For instance, Investment Advisory Group LLC increased its holdings by 3.3%, acquiring an additional 14 shares, bringing its total to 440 shares valued at $407,000. Similarly, Marino Stram & Associates LLC entered the market with a new stake worth around $601,000. Barlow Wealth Partners Inc. also raised its position by 2.2%, now owning 34,452 shares valued at $32,546,000 after acquiring 740 shares. Other investors, including CCG Wealth Management LLC and CFM Wealth Partners LLC, also reported increases in their stake in Costco during the same quarter.
As of now, institutional investors and hedge funds collectively own 68.48% of Costco’s shares.
Recent Insider Transactions
In related activity, insider transactions have also been notable. Executive Vice President Teresa A. Jones sold 850 shares on January 21, 2024, for an average price of $986.26, totaling $838,321. Following this sale, Jones holds 4,228 shares, reflecting a 16.74% reduction in her ownership. Another executive, Russell D. Miller, sold 1,500 shares on January 9, 2024, at an average price of $916.32, amounting to $1,374,480. This transaction resulted in a 15.40% decrease in Miller’s shares, leaving him with 8,240 shares valued at approximately $7,550,476.80. Overall, insiders sold a total of 9,315 shares worth $8,549,409 in the last quarter, with corporate insiders owning just 0.10% of the company.
Costco’s Financial Performance and Future Outlook
Costco Wholesale recently announced its quarterly earnings, revealing earnings per share of $4.34 for the last quarter, surpassing analysts’ expectations by $0.07. The firm reported revenues of $67.31 billion, exceeding predictions of $67.03 billion. This marks an 8.3% increase in revenue compared to the same quarter last year, when the company reported earnings of $4.04 per share. Analysts forecast that Costco will achieve an earnings per share of $18.03 for the current fiscal year.
In addition to its earnings report, Costco announced a quarterly dividend of $1.30 per share, scheduled for payment on February 13, 2024. Shareholders on record as of January 30, 2024, will be eligible for this dividend, which equates to an annualized dividend of $5.20 and a yield of 0.5%. The company maintains a payout ratio of 27.85%.
Equity analysts have also weighed in on Costco’s performance, with various firms issuing ratings that reflect a generally positive outlook. BTIG Research initiated coverage with a “buy” rating and a target price of $1,115.00. Telsey Advisory Group reiterated an “outperform” rating with a price target of $1,100.00, while Wells Fargo reduced its target from $1,000.00 to $900.00, maintaining an “equal weight” rating. Currently, 21 analysts have rated Costco with a “buy” rating, and the average target price stands at $996.00.
As Costco continues to evolve, its business model remains focused on membership fees and a wide range of products, including groceries and household items. The company’s strategic approach, combined with strong customer loyalty, positions it well for future growth in the competitive retail landscape.
