Atlas Capital Advisors Inc. Acquires New Shares in Costco Wholesale Corporation $COST

Key Points

• Atlas Capital Advisors disclosed a new fourth-quarter stake in Costco, buying 5,554 shares valued at about $4.8 million.
• Costco’s latest quarterly results were mixed: it beat revenue expectations at $70.53 billion but missed EPS estimates by one cent, while still posting strong year-over-year earnings growth.
• The company also raised its quarterly dividend to $1.47 per share, and Wall Street remains broadly bullish with a Moderate Buy consensus and an average price target of about $1,060.

Atlas Capital Advisors Inc. acquired a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the fourth quarter, according to its most recent filing with the SEC. The fund acquired 5,554 shares of the retailer's stock, valued at approximately $4,789,000.

A number of other hedge funds have also bought and sold shares of COST. Hurley Capital LLC boosted its holdings in Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock valued at $31,000 after purchasing an additional 18 shares during the period. Entrust Financial LLC bought a new position in Costco Wholesale in the 4th quarter valued at $31,000. Joseph Group Capital Management bought a new position in Costco Wholesale in the 4th quarter valued at $33,000. Abich Financial Wealth Management LLC bought a new position in Costco Wholesale in the 3rd quarter valued at $34,000. Finally, Imprint Wealth LLC bought a new position in Costco Wholesale in the 3rd quarter valued at $36,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Price Performance

COST stock opened at $982.35 on Friday. The firm's 50-day moving average price is $1,005.34 and its two-hundred day moving average price is $966.74. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The stock has a market capitalization of $435.65 billion, a price-to-earnings ratio of 49.41, a PEG ratio of 4.76 and a beta of 0.88. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings data 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). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The firm had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $70.12 billion. During the same quarter in the previous year, the firm posted $4.28 EPS. As a group, equities analysts predict that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were paid a dividend of $1.47 per share. 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 yield of 0.6%. Costco Wholesale's payout ratio is presently 29.58%.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Erste Group Bank lifted its FY2026 and FY2027 earnings forecasts for Costco, signaling expectations for stronger profitability ahead.
• Positive Sentiment: Commentary in 24/7 Wall St. emphasized Costco’s membership-fee model as a resilient source of recurring revenue that can support long-term earnings growth.
• Positive Sentiment: Barchart coverage noted Costco as one of the retail names rewarding shareholders with a higher dividend, reinforcing the company’s capital-return appeal.
• Neutral Sentiment: Coverage that Costco offers shopping without a membership in limited cases is mainly informational and not likely to materially affect the stock.
• Neutral Sentiment: The Iowa court decision involving a former Costco manager appears to be a legal headline with limited direct impact on the company’s overall financial outlook.
• Negative Sentiment: Bloomberg reported rising plastic input costs may lead to higher prices for consumer goods later this year, which could add inflation pressure to Costco’s retail environment and potentially squeeze margins or demand.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. Jefferies Financial Group reissued a "buy" rating and issued a $1,050.00 price target on shares of Costco Wholesale in a report on Thursday, March 5th. JPMorgan Chase & Co. raised their price target on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an "overweight" rating in a report on Friday, April 17th. HC Wainwright reissued a "buy" rating on shares of Costco Wholesale in a report on Monday, June 1st. Deutsche Bank Aktiengesellschaft raised their price target on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Finally, BTIG Research reissued a "buy" rating and issued a $1,125.00 price target on shares of Costco Wholesale in a report on Friday, May 29th. Twenty-two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average 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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