Empirical Capital Management LLC Reduces Stake in Costco Wholesale Co.

Empirical Capital Management LLC has taken steps to reduce its stake in Costco Wholesale Co. (NASDAQ:COST) during the third quarter of the year. According to a recent Form 13F filing with the Securities and Exchange Commission, the firm disclosed a 37.3% cut in its holdings, now owning 11,350 shares of Costco after selling 6,750 shares in the period. As of this filing, these shares were valued at approximately $10.06 million, representing about 7.0% of Empirical Capital Management LLC's overall investment portfolio, making Costco one of its top investments.

Changes Among Institutional Investors

Additional changes in positions among institutional investors were noted during the same quarter. For instance, RPg Family Wealth Advisory LLC established a new stake in Costco worth $29,000. Meanwhile, Financial Connections Group Inc. significantly increased its stake by 557.1% in the previous quarter, eventually holding 46 shares valued at roughly $39,000. Ruedi Wealth Management Inc. also expanded its position by 73.5%, now owning 59 shares worth $50,000 after purchasing an additional 25 shares. Summit Securities Group LLC entered a new investment in Costco valued at around $50,000 in the second quarter. Fairway Wealth LLC similarly amplified its stake by 230.0%, ending up with 66 shares worth about $56,000, following the acquisition of 46 additional shares during this timeframe. Notably, institutional investors and hedge funds control approximately 68.48% of Costco's stock.

Analyst Ratings and Predictions

On Wall Street, analysts share optimistic outlooks about Costco. Deutsche Bank increased its target price for the stock from $925 to $927 while giving it a "buy" rating on August 8. StockNews.com, however, downgraded Costco's rating from "buy" to "hold" on September 27. Jefferies Financial Group raised its price target markedly from $1,050 to $1,145, endorsing the stock with a "buy" rating. Loop Capital also revised its price objective from $975 to $1,005 and kept a "buy" rating, while The Goldman Sachs Group raised its target from $876 to $995, also classifying it as a "buy." Currently, data from MarketBeat.com reveals that out of 29 analysts, ten have given a hold rating while nineteen have rated it as a buy, leading to an overall consensus of a "Moderate Buy" and an average price target of $928.50.

Insider Sales Activity

There have been notable insider transactions as well. EVP Claudine Adamo recently sold 3,200 shares for approximately $2.84 million on September 30, leading to a 27.05% reduction in her holdings. Following this trade, she retained 8,630 shares valued at around $7.67 million. Additionally, EVP Pierre Riel sold 2,000 shares on October 15, fetching about $1.79 million, which also marked a 16.38% decrease in his ownership, leaving him with 10,210 shares worth about $9.16 million. Across the last quarter, insiders have collectively sold 11,016 shares valued at approximately $9.83 million, with insiders owning about 0.18% of the total stock.

Costco’s Recent Stock Performance

Costco's stock opened at $982.26, showcasing its stable performance. Key financial metrics include a quick ratio of 0.44, a current ratio of 0.97, and a debt-to-equity ratio of 0.25. The stock has seen an average moving price of $913.65 over the past 50 days and $876.82 over the last 200 days. With a market capitalization of $435.21 billion and a P/E ratio of 59.28, Costco has exhibited a 12-month range from a low of $603.86 to a high of $991.15. The latest earnings report on September 26 revealed an EPS of $5.15, slightly better than the projected $5.05. Despite a slight revenue miss with reported earnings of $79.70 billion against the expected $79.91 billion, it marked a 1.0% increase compared to the previous year.

Dividend Initiatives

Costco Wholesale Corporation has also declared a quarterly dividend recently. This dividend is slated to be paid out on November 15 to shareholders recorded on November 1, totaling $1.16. The yearly dividend amounts to $4.64 with a yield of 0.47%, and the company maintains a payout ratio of 28.00%.

About Costco Wholesale

Costco Wholesale Corporation operates membership-based warehouse clubs across multiple countries, including the United States, Canada, Mexico, Japan, the UK, and several others. The company offers a diverse range of products, both branded and private label.

Costco, Investment, Shares