Auto Owners Insurance Co Purchases 348,843 Shares of Costco Wholesale Corporation $COST

Key Points

• Auto Owners Insurance Co dramatically increased its Costco stake in the fourth quarter, buying 348,843 shares and raising its position to 349,248 shares worth about $30.1 million.
• Costco reported strong quarterly results with revenue of $70.53 billion, though EPS of $4.93 narrowly missed estimates by one cent. Analysts still expect full-year EPS of 20.38.
• The company also raised its quarterly dividend to $1.47 from $1.30, boosting the annualized payout to $5.88 per share and yielding about 0.6%.

Auto Owners Insurance Co boosted its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 86,134.1% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 349,248 shares of the retailer's stock after acquiring an additional 348,843 shares during the quarter. Auto Owners Insurance Co owned 0.08% of Costco Wholesale worth $30,117,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of the company. Lifetime Wealth Management P.C. bought a new position in Costco Wholesale in the fourth quarter valued at about $28,000. Union Savings Bank purchased a new stake in shares of Costco Wholesale during the 4th quarter valued at about $2,040,000. Cedarwood Wealth LLC bought a new position in shares of Costco Wholesale in the 4th quarter worth approximately $323,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of Costco Wholesale in the 4th quarter worth approximately $27,000. Finally, Worthington Financial Partners LLC purchased a new position in shares of Costco Wholesale in the fourth quarter worth approximately $1,173,000. Institutional investors own 68.48% of the company's stock.

Costco Wholesale Stock Performance

Shares of NASDAQ:COST opened at $951.45 on Friday. The stock has a 50 day moving average of $1,000.19 and a 200 day moving average of $969.01. The company has a market cap of $421.95 billion, a PE ratio of 47.86, a price-to-earnings-growth ratio of 4.61 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 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 released its earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). The firm had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same quarter in the previous year, the business posted $4.28 EPS. As a group, equities research analysts expect that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Increases Dividend

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

Trending Headlines about Costco Wholesale

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

Wall Street Analyst Weigh In

Several brokerages recently issued reports on COST. Citigroup assumed coverage on shares of Costco Wholesale in a research report on Thursday. They set a "neutral" rating and a $1,020.00 target price for the company. Wells Fargo & Company increased their price target on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a research report on Thursday, April 9th. HC Wainwright reiterated a "buy" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Weiss Ratings raised shares of Costco Wholesale from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, June 4th. Finally, Bank of America upped their price objective on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a research note on Friday, May 29th. Twenty-two analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Costco Wholesale has a consensus rating of "Moderate Buy" and an average price target of $1,061.45.

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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