Connors Investor Services Inc. Decreases Position in Costco Wholesale Corporation $COST

Key Points

• Connors Investor Services Inc. cut its Costco stake by 58.2% in the fourth quarter, selling 10,499 shares and leaving it with 7,552 shares worth about $6.5 million.
• Despite some mixed institutional trading, Costco continues to draw strong analyst support, with 22 Buy ratings and a consensus Moderate Buy target price of about $1,052.60.
• Costco reported solid quarterly results, including EPS of $4.58 and revenue of $69.6 billion, while also raising its quarterly dividend to $1.47 per share from $1.30.

Connors Investor Services Inc. cut its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 58.2% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 7,552 shares of the retailer's stock after selling 10,499 shares during the quarter. Connors Investor Services Inc.'s holdings in Costco Wholesale were worth $6,508,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of COST. Brighton Jones LLC lifted 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 valued at $18,165,000 after buying an additional 2,172 shares in the last quarter. Revolve Wealth Partners LLC lifted 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 valued at $1,029,000 after buying an additional 130 shares in the last quarter. Sivia Capital Partners LLC lifted 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 valued at $3,814,000 after buying an additional 165 shares in the last quarter. Pinnacle Wealth Planning Services Inc. lifted 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 valued at $2,089,000 after buying an additional 23 shares in the last quarter. Finally, Schnieders Capital Management LLC. lifted 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 valued at $8,416,000 after buying an additional 182 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco remains a top momentum and growth name, with multiple recent pieces highlighting strong long-term performance and continued investor interest as the shares trade near record levels. Why Costco (COST) is a Top Momentum Stock for the Long-Term
• Positive Sentiment: Speculation about a possible stock split has intensified after Costco broke back above the $1,000 share-price milestone, which can boost sentiment by making the stock seem more accessible to retail investors. Costco Stock Split Rumors Explode as COST Smashes $1,000 Milestone Again
• Positive Sentiment: Analysts and market coverage continue to point to Costco’s solid operating momentum and long-term return profile, reinforcing the view that the business is executing well even after a big run-up. A Look At Costco Wholesale (COST) Valuation As Shares Trade Near Recent Highs
• Neutral Sentiment: Costco is expanding its footprint, including rezoning and land purchase activity for new locations, which supports long-term growth but is not likely to move the stock much on its own. New details emerge in proposed north Macon Costco project
• Neutral Sentiment: Costco is also seeing incremental membership-related promotion and seasonal deal coverage, which may help traffic but appears too small to materially affect the share price near term. This Costco deal cuts the price of membership to $45 - here's how to get it
• Negative Sentiment: Near-term pressure is coming from valuation concerns: several articles note that Costco’s stock is already priced for strong execution, leaving little room for disappointment after the recent rally. Costco Q3 Earnings Preview: Great Business With Limited Upside
• Negative Sentiment: Costco also traded lower in sympathy with Walmart after Walmart’s earnings and guidance disappointed investors, sparking broader concern about the consumer-retail backdrop. Costco Stock Dips After Walmart's Q1 Report: What's Going On?
• Negative Sentiment: Costco is facing headlines around tariff refunds and a tax dispute in Japan, adding some legal and regulatory noise, though these issues do not appear to be the main driver of today’s move. Costco suit highlights gaps in $166B tariff refund process

Analysts Set New Price Targets

COST has been the topic of a number of research reports. DA Davidson reissued a "neutral" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a research note on Friday, April 10th. Sanford C. Bernstein reissued an "outperform" rating and issued a $1,192.00 target price on shares of Costco Wholesale in a research note on Tuesday, May 12th. Evercore set a $1,100.00 target price on shares of Costco Wholesale in a research note on Monday, March 2nd. Daiwa Securities Group raised their target price on shares of Costco Wholesale from $917.00 to $975.00 and gave the stock a "neutral" rating in a research note on Tuesday, March 10th. Finally, Jefferies Financial Group reissued a "buy" rating and issued a $1,050.00 target price on shares of Costco Wholesale in a research note on Thursday, March 5th. Twenty-two analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,052.60.

Costco Wholesale Trading Down 2.1%

COST opened at $1,028.24 on Friday. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. The company's 50 day simple moving average is $1,007.87 and its two-hundred day simple moving average is $960.13. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50. The firm has a market capitalization of $456.18 billion, a price-to-earnings ratio of 53.47, a price-to-earnings-growth ratio of 5.06 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.55 by $0.03. The business had revenue of $69.60 billion during 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 business's revenue was up 9.2% compared to the same quarter last year. During the same quarter last year, the firm earned $4.02 EPS. Analysts expect that Costco Wholesale Corporation will post 20.33 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

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

Insider Activity

In other news, EVP Claudine Adamo sold 730 shares of the firm'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 completion of the sale, the executive vice president owned 6,121 shares in the company, valued at $6,139,485.42. This trade represents a 10.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.10% of the stock is owned by corporate 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.

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