Brookstone Capital Management Reduces Position in Costco Wholesale Corporation $COST

Key Points

• Brookstone Capital Management reduced its Costco position by 9.9% in the first quarter, selling 1,727 shares and leaving it with 15,758 shares valued at about $15.7 million.
• Costco’s latest earnings slightly missed EPS estimates by $0.01, though revenue came in above expectations at $70.53 billion and profit metrics remained solid.
• Wall Street remains generally bullish on Costco, with an average “Moderate Buy” rating and a consensus price target of about $1,061.45, even as the stock trades below recent highs.

Brookstone Capital Management decreased its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 9.9% during the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 15,758 shares of the retailer's stock after selling 1,727 shares during the period. Brookstone Capital Management's holdings in Costco Wholesale were worth $15,702,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in Costco Wholesale during the 4th quarter valued at $27,000. Lifetime Wealth Management P.C. purchased a new position in shares of Costco Wholesale in the fourth quarter valued at about $28,000. Mcguire Capital Advisors Inc. purchased a new position in shares of Costco Wholesale in the fourth quarter valued at about $28,000. Hurley Capital LLC raised its stake in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock valued at $31,000 after acquiring an additional 18 shares during the last quarter. Finally, Entrust Financial LLC bought a new position in shares of Costco Wholesale during the fourth quarter valued at about $31,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

More Costco Wholesale News

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

• Positive Sentiment: Analysts and market commentary said Costco’s membership model looks even stronger, citing higher renewal rates, executive upgrades, and solid fee income growth that point to durable customer loyalty and steady recurring revenue. Is Costco Wholesale's Membership Model Getting Even Stronger?
• Positive Sentiment: Higher fuel prices may be sending more shoppers to Costco gas stations, which can increase in-store traffic and support a spillover lift in merchandise sales. 1 Big Catalyst for Costco Stock Right Now
• Positive Sentiment: One article argued that Costco’s low-price model can remain resilient even if the Fed keeps rates elevated, because value-oriented shopping tends to hold up well in inflationary periods. 1 Reason Why the Fed's Decision to Keep Interest Rates Steady Is No Match for Costco Stock
• Neutral Sentiment: Costco is also getting attention as a potential beneficiary of heavy summer spending and online competition, but the articles focus more on Amazon’s Prime Day and broader retail activity than on a direct new catalyst for Costco. Amazon’s Prime Day sale could spur $26.3B in US e-commerce
• Neutral Sentiment: There was also chatter about Costco’s CFO and the timing of a possible special dividend, but the discussion did not confirm any new payout decision, so it is more of a speculation-driven headline than a clear catalyst. Costco's CFO just answered the special-dividend question
• Negative Sentiment: One report noted that some Costco members are raising inventory complaints, which could hint at occasional merchandising or availability issues that may frustrate shoppers. Costco members voice surprising inventory complaint
• Negative Sentiment: A Fortune report said quartz countertop fabrication has caused serious lung disease among workers, including in jobs tied to Costco kitchens, which could add reputational or legal pressure. Your quartz countertop is the new asbestos — for the workers who cut it

Costco Wholesale Stock Down 0.0%

Shares of NASDAQ COST opened at $951.35 on Tuesday. The firm has a fifty day simple moving average of $998.58 and a two-hundred day simple moving average of $969.62. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The firm has a market capitalization of $421.90 billion, a PE ratio of 47.85, a price-to-earnings-growth ratio of 4.61 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share 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 company had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the previous year, the firm posted $4.28 EPS. Equities analysts expect that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were issued a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date was Friday, May 1st. Costco Wholesale's dividend payout ratio (DPR) is 29.58%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on COST shares. Mizuho set a $1,100.00 target price on shares of Costco Wholesale in a report on Monday, June 1st. Citigroup assumed coverage on Costco Wholesale in a report on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 price target on the stock. Deutsche Bank Aktiengesellschaft upped their price target on Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. JPMorgan Chase & Co. increased their price objective on Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an "overweight" rating in a report on Friday, April 17th. Finally, Weiss Ratings upgraded Costco Wholesale from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, June 4th. Twenty-two investment 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 data from MarketBeat, Costco Wholesale presently has an average rating of "Moderate Buy" and an average target price of $1,061.45.

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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