Cercano Management LLC Raises Holdings in Costco Wholesale Corporation $COST

Key Points

• Cercano Management LLC boosted its Costco stake by 2,307.2% in the fourth quarter, ending with 17,139 shares valued at about $14.8 million.
• Other institutional investors also added to Costco positions, and hedge funds/institutions now own 68.48% of the company’s stock, underscoring broad investor interest.
• Analysts remain mostly bullish on Costco, with the stock carrying a “Moderate Buy” consensus and an average target price of $1,056.32, even as the company recently posted earnings of $4.93 per share, slightly missing expectations.

Cercano Management LLC increased its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 2,307.2% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 17,139 shares of the retailer's stock after buying an additional 16,427 shares during the quarter. Cercano Management LLC's holdings in Costco Wholesale were worth $14,780,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. Brighton Jones LLC grew its stake in Costco Wholesale by 12.3% in the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock worth $18,165,000 after acquiring an additional 2,172 shares during the period. Revolve Wealth Partners LLC grew its stake in Costco Wholesale by 13.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock worth $1,029,000 after acquiring an additional 130 shares during the period. Sivia Capital Partners LLC grew its stake in Costco Wholesale by 4.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock worth $3,814,000 after acquiring an additional 165 shares during the period. Pinnacle Wealth Planning Services Inc. grew its stake in Costco Wholesale by 1.1% in the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock worth $2,089,000 after acquiring an additional 23 shares during the period. Finally, Schnieders Capital Management LLC. grew its stake in Costco Wholesale by 2.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock worth $8,416,000 after acquiring an additional 182 shares during the period. Institutional investors and hedge funds own 68.48% of the company's stock.

Analyst Upgrades and Downgrades

COST has been the subject of several research reports. Wells Fargo & Company boosted their price objective on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the company an "equal weight" rating in a research note on Thursday, April 9th. Jefferies Financial Group reissued a "buy" rating and set a $1,050.00 price objective on shares of Costco Wholesale in a research note on Thursday, March 5th. Citigroup reissued a "neutral" rating on shares of Costco Wholesale in a research note on Friday, February 20th. Oppenheimer boosted their price objective on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a research note on Tuesday, May 19th. Finally, The Goldman Sachs Group boosted their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research note on Friday. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $1,056.32.

Costco Wholesale Stock Performance

Shares of Costco Wholesale stock opened at $946.11 on Tuesday. The firm has a market cap of $419.74 billion, a PE ratio of 47.59, a price-to-earnings-growth ratio of 4.70 and a beta of 0.88. The firm's 50-day simple moving average is $1,007.23 and its 200-day simple moving average is $963.04. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data 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 28.72%. The business had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the prior year, the company earned $4.28 EPS. Equities 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. Stockholders of record on Friday, May 1st were issued a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend 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 payout ratio is 30.58%.

More Costco Wholesale News

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

• Positive Sentiment: Costco’s Q3 comparable sales rose 9.8%, with adjusted comps up 6.6% on higher traffic and bigger baskets, showing healthy underlying demand. Is Costco's 9.8% Comparable Sales Growth Stronger Than It Looks?
• Positive Sentiment: Analysts at Jefferies said Costco’s value strategy, membership growth, fuel business, and digital operations continue to support sales momentum after a strong fiscal third quarter. Costco's value strategy, membership growth support outlook after strong quarter, says Jefferies
• Positive Sentiment: DA Davidson reiterated a bullish view, calling Costco a “best-of-breed” retailer with strong returns on equity and a $1,000 price target. Costco Wholesale Is A 'Best-of-Breed Bison,' Analyst Explains Why
• Neutral Sentiment: Some commentary notes that part of the sales growth was boosted by fuel and foreign exchange, suggesting the headline comp number may overstate the core business trend. Is Costco's 9.8% Comparable Sales Growth Stronger Than It Looks?
• Neutral Sentiment: Several articles emphasize that despite strong revenue growth, the stock has not been able to build momentum, implying investors may already expect excellent results from Costco. Why Even 12% Revenue Growth in Q3 Wasn't Enough to Give Costco's Stock a Boost
• Negative Sentiment: Costco’s stock has been falling in the wake of earnings, with investors seemingly taking profits or worrying that membership growth is slowing relative to sales momentum. Why analysts are backing Costco despite its post-earnings slump

Insider Activity

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 completion of the sale, the executive vice president directly owned 6,121 shares of the company's stock, valued at $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is owned by company insiders.

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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