Arwa LLC Makes New $1.52 Million Investment in Costco Wholesale Corporation $COST

Key Points

• Arwa LLC disclosed a new fourth-quarter stake in Costco Wholesale, buying 1,760 shares valued at about $1.52 million. The position accounts for roughly 0.9% of Arwa’s portfolio.
• Costco’s latest quarterly results were mixed: earnings per share came in at $4.93, just below estimates, while revenue of $70.53 billion slightly beat forecasts. The company also reported strong profitability, with a 28.04% return on equity.
• Costco recently raised its quarterly dividend to $1.47 per share from $1.30, and Wall Street remains broadly positive. Analysts currently rate the stock a Moderate Buy with an average price target of $1,061.45.

Arwa LLC purchased a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 1,760 shares of the retailer's stock, valued at approximately $1,518,000. Costco Wholesale makes up about 0.9% of Arwa LLC's investment portfolio, making the stock its 24th biggest position.

Other hedge funds have also recently bought and sold shares of the company. Mcguire Capital Advisors Inc. acquired a new position in shares of Costco Wholesale during the 4th quarter valued at about $28,000. Hurley Capital LLC lifted its holdings in Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after purchasing an additional 18 shares during the last quarter. Entrust Financial LLC acquired a new stake in Costco Wholesale in the 4th quarter worth approximately $31,000. Joseph Group Capital Management bought a new stake in Costco Wholesale during the fourth quarter worth approximately $33,000. Finally, Imprint Wealth LLC bought a new stake in Costco Wholesale during the third quarter worth approximately $36,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $951.45 on Friday. 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 firm has a market cap of $421.95 billion, a P/E ratio of 47.86, a P/E/G ratio of 4.61 and a beta of 0.88. The company's 50-day moving average price is $1,000.19 and its two-hundred day moving average price is $969.01. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50.

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 firm had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same period in the prior year, the company posted $4.28 EPS. As a group, research analysts forecast that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

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

Wall Street Analysts Forecast Growth

COST has been the subject of a number of analyst reports. Truist Financial boosted their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research note on Friday, May 29th. BMO Capital Markets upped their price target on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the company an "outperform" rating in a report on Friday, March 6th. TD Cowen reaffirmed a "buy" rating and issued a $1,175.00 price target on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Roth Mkm lifted their price objective on Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research note on Friday, May 29th. Finally, DA Davidson reaffirmed a "neutral" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a report on Thursday, June 4th. Twenty-two 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 data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $1,061.45.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco’s latest operating update showed strong momentum, with comparable sales up 9.8%, membership fees rising 10.7%, and digitally enabled sales jumping 21.5%, reinforcing the company’s durable growth story. Prediction: Costco Will Trade At This Price in 2027
• Positive Sentiment: Analysts and commentators continue to highlight Costco’s competitive advantages, loyal membership base, and ongoing technology investments to improve the shopping experience and ease customer pain points like parking. Costco tackles major frustration for members
• Positive Sentiment: Several recent articles frame the stock weakness as a possible buying opportunity, pointing to Costco’s resilient business model and long-term compounding potential. Why Weakness in Dividend-Paying Costco Stock Is a Strong Buying Opportunity
• Neutral Sentiment: Fresh media coverage around Costco products, store hours, and local development approvals is supportive of brand visibility, but these items are unlikely to materially move the stock on their own. Is Costco open on Juneteenth?
• Negative Sentiment: Investor sentiment remains cautious because Costco’s premium valuation is being questioned amid macro uncertainty and sticky inflation, with one recent note saying growth may not fully justify the stock’s price. Should You Buy Costco Stock for the Long Haul? Here's the Honest Answer.
• Negative Sentiment: Analyst disagreement is also weighing on the shares, with one report noting Costco fell after Citi and Bernstein issued conflicting views on the big-box retailer. Costco Stock (COST) Drops as Analysts Can’t Agree on the Big-Box Retailer

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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