Drake & Associates LLC Reduces Position in Costco Wholesale Corporation $COST

Drake & Associates LLC trimmed its position in Costco Wholesale Corporation (NASDAQ:COST) by 17.4% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 3,489 shares of the retailer’s stock after selling 734 shares during the quarter. Costco Wholesale makes up 0.6% of Drake & Associates LLC’s investment portfolio, making the stock its 20th largest position. Drake & Associates LLC’s holdings in Costco Wholesale were worth $3,008,000 at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. MV Capital Management Inc. acquired a new position in shares of Costco Wholesale during the fourth quarter worth $3,881,000. Sunbelt Securities Inc. lifted its holdings in Costco Wholesale by 0.3% during the 4th quarter. Sunbelt Securities Inc. now owns 5,609 shares of the retailer’s stock worth $4,837,000 after buying an additional 18 shares during the last quarter. Cambient Family Office LLC acquired a new position in shares of Costco Wholesale during the 4th quarter worth about $5,653,000. McLaughlin Asset Management Inc. acquired a new position in shares of Costco Wholesale during the 4th quarter worth about $516,000. Finally, Bauman Advisory Group LLC purchased a new position in shares of Costco Wholesale in the 4th quarter valued at about $1,065,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco continues to show strong underlying demand, with May sales growth, high membership renewal rates, and faster-growing digital/e-commerce channels supporting the long-term growth story. How Investors May Respond To Costco (COST) Digital Momentum Amid Valuation Jitters And Macro Uncertainty
• Positive Sentiment: Costco lowered prices on some Kirkland Signature items, reinforcing its value proposition for inflation-conscious shoppers and potentially helping traffic and member loyalty. Why Weakness in Dividend-Paying Costco Stock Is a Strong Buying Opportunity
• Positive Sentiment: A new Costco gas station was approved in a Bay Area city, adding another potential traffic driver and incremental fuel-related sales opportunity. This Bay Area city approves new Costco gas station
• Neutral Sentiment: Citigroup initiated coverage with a neutral rating and a $1,020 price target, which is above the recent trading level but does not signal a strong near-term catalyst. Benzinga coverage of Citigroup initiation
• Negative Sentiment: Analyst commentary is divided, with one report noting that Costco shares fell after Citi and Bernstein issued conflicting views, adding to uncertainty around the stock’s premium valuation. Costco Stock (COST) Drops as Analysts Can’t Agree on the Big-Box Retailer
• Negative Sentiment: Several recent articles focus on whether Costco’s stock is too expensive near the $1,000 level, reflecting valuation jitters that can pressure shares when growth expectations are already high. Costco at $1,000: A Timeless Business, Is the Stock Still a Buy or a Bubble?

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on COST. Jefferies Financial Group reissued a “buy” rating and set a $1,050.00 target price on shares of Costco Wholesale in a research report on Thursday, March 5th. Wells Fargo & Company increased their price target on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the company an “equal weight” rating in a research note on Thursday, April 9th. Truist Financial raised their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a report on Friday, May 29th. The Goldman Sachs Group raised their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Finally, UBS Group boosted their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a “buy” rating in a research report on Wednesday, May 20th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Costco Wholesale has a consensus rating of “Moderate Buy” and an average target price of $1,061.45.

Costco Wholesale Stock Down 1.5%

COST opened at $951.45 on Friday. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The stock has a market capitalization of $421.95 billion, a P/E ratio of 47.86, a price-to-earnings-growth ratio of 4.68 and a beta of 0.88. The business’s 50-day simple moving average is $1,001.77 and its 200-day simple moving average is $969.14.

Costco Wholesale (NASDAQ:COST) last announced its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period last year, the company earned $4.28 earnings per share. Analysts anticipate that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were issued a $1.47 dividend. The ex-dividend date of this dividend was Friday, May 1st. This is an increase from Costco Wholesale’s previous quarterly dividend of $1.30. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio is currently 29.58%.

About Costco Wholesale

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.