Bank Julius Baer & Co. Ltd Zurich Raises Position in Costco Wholesale Corporation $COST

Key Points

• Bank Julius Baer & Co. Ltd Zurich increased its Costco stake by 32.7% in the fourth quarter, buying 124,551 more shares and bringing its total holding to 505,645 shares worth about $436.2 million.
• Costco posted solid quarterly results, with EPS of $4.58 beating estimates and revenue of $69.6 billion topping expectations, while sales rose 9.2% from a year earlier.
• The company raised its quarterly dividend to $1.47 per share from $1.30, and analysts remain generally constructive with a consensus rating of “Moderate Buy” and an average price target around $1,047.

Bank Julius Baer & Co. Ltd Zurich grew its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 32.7% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 505,645 shares of the retailer's stock after acquiring an additional 124,551 shares during the period. Costco Wholesale comprises 1.2% of Bank Julius Baer & Co. Ltd Zurich's portfolio, making the stock its 16th largest holding. Bank Julius Baer & Co. Ltd Zurich owned 0.11% of Costco Wholesale worth $436,237,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Optima Capital LLC grew its position in Costco Wholesale by 0.9% during the third quarter. Optima Capital LLC now owns 1,192 shares of the retailer's stock worth $1,104,000 after buying an additional 11 shares during the period. Gratus Wealth Advisors LLC grew its position in Costco Wholesale by 0.8% during the third quarter. Gratus Wealth Advisors LLC now owns 1,399 shares of the retailer's stock worth $1,295,000 after buying an additional 11 shares during the period. Cascade Investment Group Inc. grew its position in Costco Wholesale by 1.0% during the third quarter. Cascade Investment Group Inc. now owns 1,151 shares of the retailer's stock worth $1,065,000 after buying an additional 11 shares during the period. Brown Wealth Management LLC grew its position in Costco Wholesale by 3.7% during the third quarter. Brown Wealth Management LLC now owns 305 shares of the retailer's stock worth $282,000 after buying an additional 11 shares during the period. Finally, Caliber Wealth Management LLC KS grew its position in Costco Wholesale by 1.7% during the third quarter. Caliber Wealth Management LLC KS now owns 655 shares of the retailer's stock worth $606,000 after buying an additional 11 shares during the period. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale Stock Performance

Shares of COST opened at $1,033.08 on Thursday. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The company has a market capitalization of $458.33 billion, a price-to-earnings ratio of 53.72, a PEG ratio of 5.03 and a beta of 0.92. The company's 50 day simple moving average is $999.39 and its 200 day simple moving average is $953.63. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,067.08.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.55 by $0.03. The business had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The company's quarterly revenue was up 9.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $4.02 earnings per share. On average, sell-side analysts predict that Costco Wholesale Corporation will post 20.32 EPS for the current year.

Costco Wholesale Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be paid a dividend of $1.47 per share. The ex-dividend date of this dividend is Friday, May 1st. This is a positive change 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 payout ratio is currently 30.58%.

Analysts Set New Price Targets

COST has been the topic of several recent analyst reports. Oppenheimer upped their target price on shares of Costco Wholesale from $1,050.00 to $1,100.00 and gave the stock an "outperform" rating in a research report on Thursday, February 5th. Evercore set a $1,100.00 target price on shares of Costco Wholesale in a research report on Monday, March 2nd. Truist Financial upped their target price on shares of Costco Wholesale from $926.00 to $977.00 and gave the stock a "hold" rating in a research report on Friday, March 6th. Wells Fargo & Company upped their target price 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. Finally, Raymond James Financial upped their target price on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a research report on Friday, March 6th. 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. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,047.27.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: TD Cowen’s bullish take after a headquarters visit suggested Costco still has room to grow, while noting the company’s biggest risk is complacency rather than weakening demand. ‘Costco’s (COST) Biggest Risk Is Being Complacent,’ Analyst Says After HQ Visit
• Positive Sentiment: Costco’s April sales strength and accelerating e-commerce business were highlighted as evidence that momentum remains solid, which could support revenue expectations going forward. Should Investors Buy Costco Stock Now After Strong April Retail Sales?
• Positive Sentiment: Costco acquired a 55-acre site in Fort Myers, a move that signals continued physical expansion and long-term growth potential. Costco Acquires 55-Acre Site in Fort Myers, Marking One of Southwest Florida's Largest and Highest-Value Land Sales
• Neutral Sentiment: Several market commentaries compared Costco with Walmart and other retailers, but the main takeaway was that Costco still looks like a quality operator even as valuation remains rich. Walmart vs Costco Wholesale: Which Retail Stock Is the Better Buy Right Now?
• Neutral Sentiment: Stories about a redesigned gas station in California and a new Costco-linked retail purchase order for GEN Korean BBQ point to Costco’s broad ecosystem, but they are unlikely to move the stock on their own. California Costco plans to demolish its gas station — and reveals plans for brand new facility GEN Korean BBQ Secures Its First Direct Southern California and Hawaii Regional Costco Purchase Order
• Negative Sentiment: Some articles focused on Costco’s elevated valuation and suggested investors may want to wait or even trim positions, reflecting concern that expectations are already high. Is It Time to Sell Costco Stock? Costco At $1,000: Buy, Sell or Hold?

Insider Activity

In related news, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the transaction, the executive vice president owned 6,121 shares of the company's stock, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 0.10% of the company's stock.

Costco Wholesale Company Profile

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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