Franklin Resources Inc. Trims Stock Holdings in Costco Wholesale Corporation $COST

Franklin Resources Inc. lowered its stake in shares of Costco Wholesale Corporation (NASDAQ:COST) by 13.1% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 835,962 shares of the retailer’s stock after selling 125,497 shares during the period. Franklin Resources Inc. owned 0.19% of Costco Wholesale worth $773,792,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Soundwatch Capital LLC lifted its holdings in Costco Wholesale by 635.7% in the 2nd quarter. Soundwatch Capital LLC now owns 2,553 shares of the retailer’s stock valued at $25,000 after purchasing an additional 2,206 shares in the last quarter. Hurley Capital LLC boosted its stake in shares of Costco Wholesale by 120.0% during the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock worth $31,000 after purchasing an additional 18 shares during the last quarter. Abich Financial Wealth Management LLC purchased a new stake in shares of Costco Wholesale during the third quarter worth about $34,000. Collier Financial acquired a new position in shares of Costco Wholesale in the third quarter valued at approximately $35,000. Finally, AXS Investments LLC acquired a new position in shares of Costco Wholesale in the third quarter valued at approximately $36,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Key Costco Wholesale News

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: BTIG raised its price target to $1,125 (from $1,115) and kept a Buy rating after Costco’s Q2 beat, citing strong membership income and traffic — a supportive signal for upside. Read More.
• Positive Sentiment: Several outlets/reporting services published higher price targets (including one noting a raise to $1,315), showing continued analyst bullishness and a range of upside scenarios priced in by some firms. Read More.
• Positive Sentiment: Tax/tariff news: a federal trade‑court ruling could generate tariff refunds that management says it may pass to members as lower prices — this would reinforce Costco’s value proposition and membership stickiness. Read More.
• Positive Sentiment: Operational momentum: February comparable‑store sales were strong (Zacks cites comps up ~7.9%) and e‑commerce grew double digits, supporting the premium valuation on fundamental grounds. Read More.
• Neutral Sentiment: Daiwa raised its target to $975 but kept a Neutral rating — a modestly positive PT move offset by a non‑bullish stance. Read More.
• Neutral Sentiment: Truist nudged its target higher to $977 (from $926) but reiterated a Hold, noting membership growth remains a constraint — mixed signal for near‑term upside. Read More.
• Neutral Sentiment: Company expansion note: Costco is building another standalone gas station — incremental revenue/traffic detail that is likely modestly accretive over time. Read More.
• Neutral Sentiment: Wide coverage pieces (Fool, Seeking Alpha) continue to debate valuation vs. peers (Walmart, Home Depot) — helpful context but not an immediate catalyst. Read More.
• Negative Sentiment: Goldman Sachs cut its price target to $1,088, which, along with comments about premium valuation, adds near‑term downside risk if growth disappoints. Read More.
• Negative Sentiment: Valuation/expectations: some analysts and writeups (Seeking Alpha coverage noted) view shares as fairly valued — combined with membership‑growth headwinds this can pressure the stock when sentiment weakens. Read More.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the stock. JPMorgan Chase & Co. upped their price objective on shares of Costco Wholesale from $1,050.00 to $1,060.00 and gave the company an “overweight” rating in a research note on Friday, March 6th. Oppenheimer boosted their price target on Costco Wholesale from $1,050.00 to $1,100.00 and gave the company an “outperform” rating in a report on Thursday, February 5th. Bank of America started coverage on Costco Wholesale in a research note on Friday, February 27th. They set a “buy” rating and a $1,185.00 price target on the stock. Telsey Advisory Group raised their price objective on Costco Wholesale from $1,100.00 to $1,125.00 and gave the stock an “outperform” rating in a report on Friday, March 6th. Finally, Guggenheim reaffirmed a “neutral” rating on shares of Costco Wholesale in a research report on Monday, December 22nd. Twenty-two equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $1,039.13.

Insider Transactions at Costco Wholesale

In other news, EVP Teresa A. Jones sold 850 shares of the firm’s stock in a transaction dated Wednesday, January 21st. The stock was sold at an average price of $986.26, for a total value of $838,321.00. Following the transaction, the executive vice president directly owned 4,228 shares in the company, valued at $4,169,907.28. This trade represents a 16.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Javier Polit sold 2,049 shares of Costco Wholesale stock in a transaction dated Monday, December 29th. The shares were sold at an average price of $867.21, for a total value of $1,776,913.29. Following the completion of the transaction, the executive vice president directly owned 10,748 shares in the company, valued at $9,320,773.08. This represents a 16.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 6,915 shares of company stock valued at $6,317,097 in the last ninety days. Company insiders own 0.10% of the company’s stock.

Costco Wholesale Price Performance

Costco Wholesale stock opened at $997.36 on Wednesday. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,067.08. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The firm has a 50 day moving average price of $967.03 and a 200 day moving average price of $935.85. The company has a market cap of $442.70 billion, a price-to-earnings ratio of 51.86, a PEG ratio of 4.84 and a beta of 1.01.

Costco Wholesale (NASDAQ:COST) last posted its quarterly earnings results on Thursday, March 5th. The retailer reported $4.58 earnings per share for the quarter, topping analysts’ consensus estimates of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The company had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. During the same quarter last year, the firm posted $4.02 earnings per share. Costco Wholesale’s revenue was up 9.2% on a year-over-year basis. Sell-side analysts predict that Costco Wholesale Corporation will post 18.03 earnings per share for the current year.

Costco Wholesale Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, January 30th were given a $1.30 dividend. This represents a $5.20 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Friday, January 30th. Costco Wholesale’s dividend payout ratio (DPR) is 27.04%.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.