Collaborative Fund Advisors LLC Cuts Stake in Costco Wholesale Corporation $COST

Key Points

• Collaborative Fund Advisors cut its Costco stake by 60.9% in the second quarter, selling 1,574 shares and retaining 1,012 shares valued at approximately $947,000. Institutional investors collectively own 68.48% of Costco.
• Costco reported quarterly revenue of $70.53 billion, ahead of expectations, but EPS of $4.93 slightly missed estimates. The stock trades at a high valuation of about 48 times earnings, while analysts maintain a “Moderate Buy” consensus and an average price target of $1,059.53.
• Costco paid a quarterly dividend of $1.47 per share, equivalent to a $5.88 annualized payout and a 0.6% yield. Potential growth initiatives, including Medicare Advantage offerings, and speculation about another special dividend could support investor interest.

Collaborative Fund Advisors LLC lowered its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 60.9% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,012 shares of the retailer's stock after selling 1,574 shares during the period. Collaborative Fund Advisors LLC's holdings in Costco Wholesale were worth $947,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently modified their holdings of the company. Palisade Asset Management LLC increased its holdings in Costco Wholesale by 1.4% in the 4th quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock valued at $605,000 after acquiring an additional 10 shares during the last quarter. Graybill Wealth Management LTD. boosted its holdings in shares of Costco Wholesale by 0.3% during the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock valued at $2,754,000 after purchasing an additional 10 shares during the last quarter. Wealth Effects LLC boosted its holdings in shares of Costco Wholesale by 1.2% during the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock valued at $871,000 after purchasing an additional 10 shares during the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. grew its position in shares of Costco Wholesale by 1.8% during the first quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock valued at $549,000 after purchasing an additional 10 shares in the last quarter. Finally, First National Bank of Hutchinson grew its position in shares of Costco Wholesale by 0.9% during the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock valued at $1,094,000 after purchasing an additional 10 shares in the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: New Medicare Advantage offering could expand Costco’s membership value proposition. Costco is partnering with nonprofit SCAN Health Plan to offer co-branded Medicare Advantage and supplemental plans, initially in two states pending regulatory approval. The broader rollout could include pharmacy, vision, hearing and over-the-counter benefits, potentially strengthening member retention and creating an additional revenue stream. Costco’s Next Big Bulk Item: Medicare Advantage
• Positive Sentiment: Growing cash reserves may support another special dividend. Commentary suggests Costco’s accumulating cash could lead to a substantial shareholder payout this fall. While no dividend has been announced, the possibility may provide support for the stock and reinforce Costco’s shareholder-return appeal. Costco's Cash Pile Keeps Building
• Neutral Sentiment: Costco’s merchandising strategy continues to drive member engagement. The company’s practice of rotating or discontinuing popular products can frustrate shoppers, but limited availability and surprise product returns may encourage more frequent warehouse visits and support the treasure-hunt shopping experience. Costco keeps discontinuing popular products
• Negative Sentiment: Valuation leaves limited room for execution missteps. COST trades at roughly 48 times earnings, with a PEG ratio above 4, and analysts have questioned whether its strong multiyear performance is already reflected in the share price. The company’s latest quarterly EPS slightly missed consensus, although revenue exceeded expectations, adding to investor focus on earnings growth. Costco Stock Looks Fully Priced

Analysts Set New Price Targets

COST has been the topic of a number of research analyst reports. TD Cowen reiterated a "buy" rating and issued a $1,175.00 target price on shares of Costco Wholesale in a research report on Wednesday, June 3rd. The Goldman Sachs Group raised their price target on Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a report on Friday, May 29th. Sanford C. Bernstein lifted their price objective on Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research note on Friday, May 29th. BTIG Research reaffirmed a "buy" rating and set a $1,125.00 price objective on shares of Costco Wholesale in a report on Friday, May 29th. Finally, UBS Group increased their target price on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a research report on Wednesday, May 20th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $1,059.53.

Costco Wholesale Price Performance

Costco Wholesale stock opened at $956.99 on Thursday. The firm has a 50-day moving average price of $948.67 and a 200-day moving average price of $981.23. The firm has a market capitalization of $424.41 billion, a PE ratio of 48.14, a price-to-earnings-growth ratio of 4.57 and a beta of 0.87. 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 quarterly 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). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The firm had revenue of $70.53 billion for the quarter, compared to analysts' expectations of $70.12 billion. During the same period in the prior year, the firm posted $4.28 earnings per share. As a group, equities research analysts forecast that Costco Wholesale Corporation will post 20.42 EPS for the current year.

Costco Wholesale Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were given a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale's payout ratio is 29.58%.

Insider Activity

In other news, Director Kenneth D. Denman sold 885 shares of the company's stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.10% of the stock is owned by company insiders.

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.

Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST - Free Report).

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