Align Financial LLC Buys New Stake in Costco Wholesale Corporation $COST

Key Points

• Align Financial LLC disclosed a new fourth-quarter stake in Costco, buying 238,089 shares valued at about $205.3 million. The position represents roughly 0.9% of its portfolio and makes Costco its 22nd-largest holding.
• Institutional interest in Costco remains high, with hedge funds and other institutions owning 68.48% of the stock. The article also notes several smaller funds recently initiated positions or added to their holdings.
• Costco’s recent fundamentals and outlook remain solid: the company posted revenue above expectations in its latest quarter, raised its quarterly dividend to $1.47 per share, and continues to receive mostly bullish analyst ratings with an average Moderate Buy consensus.

Align Financial LLC bought a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 238,089 shares of the retailer's stock, valued at approximately $205,314,000. Costco Wholesale comprises approximately 0.9% of Align Financial LLC's portfolio, making the stock its 22nd largest holding. Align Financial LLC owned 0.05% of Costco Wholesale as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Hurley Capital LLC increased its stake in shares of Costco Wholesale by 120.0% in the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after acquiring an additional 18 shares during the period. Entrust Financial LLC acquired a new stake in Costco Wholesale during the fourth quarter valued at $31,000. Joseph Group Capital Management acquired a new stake in Costco Wholesale during the fourth quarter valued at $33,000. Imprint Wealth LLC acquired a new stake in Costco Wholesale during the third quarter valued at $36,000. Finally, eCIO Inc. acquired a new stake in Costco Wholesale during the fourth quarter valued at $39,000. 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: Analysts and market commentary pointed to Costco’s rising traffic, strong comparable sales, and gas-related member engagement as evidence that its value proposition continues to drive repeat visits and support growth. Article Title
• Positive Sentiment: Costco was included in a list of earnings-acceleration stocks, with commentary noting rising EPS growth trends that can precede stronger share performance. Article Title
• Positive Sentiment: A separate article argued that Costco remains a durable long-term “buy and hold” business because of its loyal customer base and membership-driven model. Article Title
• Neutral Sentiment: Several lifestyle pieces mentioned Costco shopping habits and product preferences, but these articles are not likely to materially affect the stock. Article Title
• Neutral Sentiment: Commentary comparing Costco with Walmart and asking whether the stock can break $1,100 by 2027 mainly reflects valuation debate rather than a clear near-term catalyst. Article Title
• Negative Sentiment: One market note said Costco fell alongside other retail stocks even as lower gas prices and a broader oil-related relief theme were discussed, suggesting some short-term weakness may be driven by sector rotation rather than fundamentals. Article Title

Costco Wholesale Stock Performance

COST opened at $965.59 on Thursday. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The company has a market cap of $428.22 billion, a price-to-earnings ratio of 48.57, a PEG ratio of 4.78 and a beta of 0.88. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The firm's fifty day simple moving average is $1,003.00 and its two-hundred day simple moving average is $968.87.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). The company had revenue of $70.53 billion for the quarter, compared to analysts' expectations 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 in the previous year, the business earned $4.28 earnings per share. Equities analysts anticipate that Costco Wholesale Corporation will post 20.38 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were paid a $1.47 dividend. 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%. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale's payout ratio is 29.58%.

Analyst Upgrades and Downgrades

COST has been the topic of several analyst reports. Daiwa Securities Group raised their price target on shares of Costco Wholesale from $917.00 to $975.00 and gave the company a "neutral" rating in a research report on Tuesday, March 10th. DA Davidson restated a "neutral" rating and set a $1,000.00 price target on shares of Costco Wholesale in a research report on Thursday, June 4th. The Goldman Sachs Group raised their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Wells Fargo & Company raised 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 report on Thursday, April 9th. Finally, Evercore set a $1,100.00 price target on shares of Costco Wholesale in a research report on Monday, March 2nd. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $1,060.41.

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.

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