Executive Vice President Of Costco Wholesale Makes $3.92M Sale

James Klauer, Executive Vice President at Costco Wholesale COST, disclosed an insider sell on April 21, according to a recent SEC filing.

What Happened: Klauer's recent move involves selling 4,000 shares of Costco Wholesale. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $3,924,280.

During Tuesday's morning session, Costco Wholesale shares up by 2.74%, currently priced at $984.02.

Get to Know Costco Wholesale Better

Costco operates a membership-based, no-frills retail model predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given its frugal cost structure, the firm is able to price its merchandise below that of competing retailers, driving high sales volume per warehouse and generating strong profits on thin margins. Costco operates over 600 warehouses in the United States and has over 60% share in the domestic warehouse club industry. Internationally, Costco operates another 280 warehouses, primarily in Canada, Mexico, Japan, and the UK.

Costco Wholesale's Financial Performance

Positive Revenue Trend: Examining Costco Wholesale's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.04% as of 28 February, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.

Insights into Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 12.52%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 4.03, Costco Wholesale showcases strong earnings per share.

Debt Management: Costco Wholesale's debt-to-equity ratio is below the industry average. With a ratio of 0.31, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 55.91, Costco Wholesale's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.61, Costco Wholesale's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 33.29, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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The Importance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Costco Wholesale's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.