Trump announces 100% chip tariff as Apple ups U.S. investment
Frates Caton, Executive Vice President of Costco Wholesale Corp (NASDAQ:COST), has sold 850 shares of the company’s common stock. The transaction, valued at approximately $765,212, took place on March 18, 2025, at an average price of $900.25 per share. The sale comes as Costco, currently valued at nearly $400 billion, trades at a P/E ratio of 52.3, suggesting a premium valuation according to InvestingPro analysis. Following this sale, Caton retains ownership of approximately 7,876 shares in the company. This transaction is part of Caton’s ongoing management of his holdings in the retail giant, headquartered in Issaquah, Washington. The company maintains strong financial health with a 22-year track record of consistent dividend payments and robust profitability metrics. For deeper insights into insider trading patterns and comprehensive financial analysis, InvestingPro offers detailed research reports covering over 1,400 top US stocks.
In other recent news, Costco Wholesale reported its second quarter 2025 financial results, which exceeded consensus revenue estimates but fell short on profit margins and membership fee income. Despite this, Bernstein analysts raised their price target for Costco to $1,177, maintaining an Outperform rating, citing the company’s strong growth and consumer appeal. Meanwhile, DA Davidson reiterated a Neutral rating with a $1,000 price target, acknowledging Costco’s expansion efforts and the growth prospects of the warehouse club segment. UBS analyst Michael Lasser maintained a Buy rating with a $1,205 price target, highlighting Costco’s resilience and sales growth despite challenging conditions in February.
Costco has been actively urging its Chinese suppliers to lower prices in response to increased US tariffs, a move also undertaken by other major retailers like Walmart (NYSE:WMT). The Trump administration’s recent tariff increase to 20% on Chinese goods has led companies like Costco to seek ways to mitigate profit impacts. In addition, Costco recently opened its 900th club in Sharon, Massachusetts, marking the first new location in the state in 23 years, with plans for further expansion in the region. The company continues to explore opportunities for growth, both domestically and internationally, as reflected in its recent performance and analyst evaluations.
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