Birinyi Associates Inc Trims Stake in Costco Wholesale Corporation $COST

Key Points

• Birinyi Associates Inc cut its Costco stake by 63.4% in the fourth quarter, selling 1,991 shares and leaving it with 1,150 shares worth about $992,000.
• Costco’s latest quarter showed solid operating momentum, with revenue of $70.53 billion and same-store sales up 9.8%, though EPS of $4.93 only matched expectations and margin pressure remains a concern.
• Wall Street sentiment remains broadly bullish: multiple analysts raised price targets, and the stock carries a consensus rating of “Moderate Buy” with an average target of $1,056.32.

Birinyi Associates Inc lowered its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 63.4% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,150 shares of the retailer's stock after selling 1,991 shares during the quarter. Birinyi Associates Inc's holdings in Costco Wholesale were worth $992,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently modified their holdings of COST. Hurley Capital LLC grew its holdings in 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 purchasing an additional 18 shares during the period. Entrust Financial LLC purchased a new stake in Costco Wholesale in the fourth quarter worth about $31,000. Abich Financial Wealth Management LLC purchased a new stake in Costco Wholesale in the third quarter worth about $34,000. Collier Financial purchased a new stake in Costco Wholesale in the third quarter worth about $35,000. Finally, Joseph Group Capital Management purchased a new stake in Costco Wholesale in the fourth quarter worth about $33,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the stock. Oppenheimer upped their price objective on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a report on Tuesday, May 19th. Raymond James Financial upped their price objective on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Friday, March 6th. UBS Group upped their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a report on Wednesday, May 20th. Telsey Advisory Group upped their price objective on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an "outperform" rating in a report on Thursday, April 9th. Finally, Rothschild & Co Redburn increased their price target on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the company a "neutral" rating in a report on Tuesday, February 17th. Twenty-one equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $1,056.32.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco posted strong third-quarter results, with revenue of $70.53 billion topping estimates and same-store sales rising 9.8%, showing that members are still spending on essentials and value-focused purchases.
• Positive Sentiment: Gasoline sales were a standout, with Costco’s gas stations setting all-time or record volume levels as drivers sought lower-priced fuel amid elevated energy costs. Article Title
• Positive Sentiment: Digital growth and membership strength continued to support results, helping offset margin pressure and reinforcing Costco’s value-driven model.
• Positive Sentiment: Several Wall Street firms raised price targets or reiterated bullish ratings, including Bank of America, Goldman Sachs, Bernstein, BTIG, and Morgan Stanley, signaling confidence in Costco’s long-term fundamentals.
• Neutral Sentiment: DA Davidson reaffirmed a neutral rating with a $1,000 target, suggesting modest upside but not a strong catalyst for a re-rating.
• Neutral Sentiment: Costco said it will return U.S. tariff refunds to members “in some form,” which may help customer loyalty but does not yet provide a clear financial boost.
• Negative Sentiment: EPS of $4.93 missed consensus by a small margin, and investors appear focused on the earnings shortfall more than the sales beat.
• Negative Sentiment: Margin pressure from higher costs and a premium valuation have prompted some traders to sell after the report, limiting enthusiasm despite the strong top-line performance.

Insiders Place Their Bets

In related news, EVP Claudine Adamo sold 730 shares of the 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 in the company, valued at $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is currently owned by company insiders.

Costco Wholesale Stock Performance

NASDAQ:COST opened at $956.32 on Monday. The company's 50 day moving average price is $1,007.80 and its 200-day moving average price is $962.81. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The stock has a market cap of $424.27 billion, a price-to-earnings ratio of 48.10, a PEG ratio of 4.70 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, meeting analysts' consensus estimates of $4.93. The firm had revenue of $70.53 billion for the quarter, compared to analysts' expectations of $70.53 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.72%. During the same quarter in the prior year, the company posted $4.28 earnings per share. On average, equities research analysts forecast that Costco Wholesale Corporation will post 20.36 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date was Friday, May 1st. Costco Wholesale's payout ratio is currently 30.58%.

Costco Wholesale 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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