This article first appeared on GuruFocus.
Invesco QQQ (QQQ) led ETF activity on Monday, Oct. 19, as funds bought a net $115.0 million of Costco Wholesale (COST). Thirty-two ETFs were buyers against 18 sellers, with 146 funds holding. The buying ended a one-day run of net selling, after ETFs sold $62.7 million on Oct. 16, and followed net buying of $8.8 million on Oct. 15, $6.6 million on Oct. 14 and $53.3 million on Oct. 13.
Every ETF and guru trade in COST is tracked on the COST guru trades page.
Which ETFs bought COST on Monday?
The largest buyers by dollar value were QQQ ($94.4 million), XLP ($18.0 million) and QLD ($4.7 million). In all, 32 ETFs added shares and 18 cut them.
QQQ added 94,806 shares, a $94.4 million increase that lifted its stake by 1.03% to 9,320,147 shares, or 1.91% of its portfolio. Consumer staples fund XLP bought 18,090 shares worth $18.0 million, raising its stake 1.34% to 1,371,898 shares at a 9.32% weight. QLD added $4.7 million, QQQM $3.9 million and IWX $3.1 million. Costco sits in the Consumer Defensive sector and Discount Stores industry with a market cap of $440.7 billion.
Have ETFs been buying or selling COST lately?
Over the last 5 reported days, ETFs were net buyers on 4 and net sellers on 1, so the recent trend is mostly buying.
What does COST do?
Costco Wholesale operates membership warehouses based on the concept that offering low prices on a limited selection of nationally-branded and private-label products across a wide range of categories produces high sales volumes and rapid inventory turnover.
Costco reported trailing-12-month revenue of $303.15 billion, up 10.2% over one year, with gross margin of 12.8% and net margin of 3.0%. Its P/E is 47.91, P/B 12.31 and P/S 1.46, with a market cap of $440.7 billion. The GF Score is 94 and GF Value of $1,054.16 compares with a price of $994.61. Dividend yield is 0.59% and the stock is up 15.85% year to date.