Costco Wholesale Corporation $COST Holdings Raised by Hendley & Co. Inc.

Key Points

• Hendley & Co. Inc. boosted its Costco stake by 119.9% in the fourth quarter, buying 3,886 additional shares and bringing its position to 7,128 shares worth about $6.15 million.
• Costco continues to expand its footprint, with a new warehouse opening in New Braunfels, Texas, and a reported 55-acre land purchase in Florida signaling more long-term store growth.
• The company remains financially strong, posting quarterly EPS and revenue above expectations and recently raising its dividend from $1.30 to $1.47 per share, even as some analysts caution that the stock’s valuation is rich.

Hendley & Co. Inc. grew its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 119.9% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 7,128 shares of the retailer's stock after purchasing an additional 3,886 shares during the period. Costco Wholesale comprises about 2.2% of Hendley & Co. Inc.'s holdings, making the stock its 17th biggest holding. Hendley & Co. Inc.'s holdings in Costco Wholesale were worth $6,147,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also modified their holdings of COST. Graney & King LLC boosted its stake in shares of Costco Wholesale by 6.8% during the 2nd quarter. Graney & King LLC now owns 173 shares of the retailer's stock worth $171,000 after acquiring an additional 11 shares during the last quarter. Seneschal Advisors LLC boosted its stake in shares of Costco Wholesale by 0.4% during the 2nd quarter. Seneschal Advisors LLC now owns 3,142 shares of the retailer's stock worth $3,110,000 after acquiring an additional 11 shares during the last quarter. Cascade Investment Group Inc. boosted its stake in shares of Costco Wholesale by 1.0% during the 3rd quarter. Cascade Investment Group Inc. now owns 1,151 shares of the retailer's stock worth $1,065,000 after acquiring an additional 11 shares during the last quarter. Brown Wealth Management LLC boosted its stake in shares of Costco Wholesale by 3.7% during the 3rd quarter. Brown Wealth Management LLC now owns 305 shares of the retailer's stock worth $282,000 after acquiring an additional 11 shares during the last quarter. Finally, Caliber Wealth Management LLC KS lifted its stake in shares of Costco Wholesale by 1.7% during the 3rd quarter. Caliber Wealth Management LLC KS now owns 655 shares of the retailer's stock valued at $606,000 after buying an additional 11 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco opened a long-awaited warehouse in New Braunfels, Texas, adding to its store base and reinforcing investor confidence in continued unit growth and market expansion. Long-awaited Costco Wholesale now open in New Braunfels
• Positive Sentiment: Another report confirmed the New Braunfels store is now open for business, underscoring Costco’s ongoing rollout of new locations that can support membership and revenue growth. Costco Wholesale now open for business in New Braunfels
• Positive Sentiment: Analysts and market commentary continue to favor Costco’s membership-driven model, saying it benefits from resilient grocery demand and supports steady growth even in a volatile retail backdrop. WMT or COST: Which Retail Giant Looks More Attractive Now?
• Positive Sentiment: Costco’s purchase of a 55-acre property in Florida suggests the company is still investing in significant long-term store growth, which investors typically view as a sign of confidence in future demand. Costco Just Signed Off on a Massive Retail Real Estate Deal in Florida. Here's What Investors Need to Know About Costco's Store Growth Goals.
• Neutral Sentiment: Articles debating whether Costco is still a good buy after its multi-year rally mostly reinforce that the stock remains a quality business but is expensive, making the reaction more about valuation than any new fundamental change. Is It Too Late To Consider Costco Wholesale (COST) After Its Strong Multi Year Rally
• Neutral Sentiment: Coverage on Costco’s food court chicken tender launch is generating consumer buzz, but the main takeaway is mixed, with some concerns about whether it replaces a favorite item rather than clearly boosting the investment outlook. Costco food court chicken tender launch sparks concerns over item replacement
• Negative Sentiment: Some recent commentary flags Costco’s premium valuation and argues the stock may be difficult to justify at current levels, which can temper enthusiasm despite strong fundamentals. Costco: Strong Fundamentals Meet Growth Premium - A Hold Entering FQ3'26
• Negative Sentiment: Another Seeking Alpha piece argues there is a reason to sell Costco beyond valuation, adding to the cautious tone around the stock’s elevated price level. Costco: Another Reason To Sell (Besides The Valuation)

Insider Buying and Selling at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of the business's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the sale, the executive vice president directly owned 6,121 shares in the company, valued at $6,139,485.42. The trade was a 10.66% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.10% of the stock is currently owned by company insiders.

Costco Wholesale Stock Up 0.7%

Shares of COST stock opened at $1,048.95 on Friday. The stock has a market cap of $465.37 billion, a P/E ratio of 54.55, a PEG ratio of 5.16 and a beta of 0.92. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,067.08. 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 company's fifty day simple moving average is $1,000.90 and its two-hundred day simple moving average is $955.06.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, topping the consensus estimate of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The business had revenue of $69.60 billion for the quarter, compared to analysts' expectations of $68.96 billion. During the same quarter in the previous year, the company earned $4.02 EPS. The business's quarterly revenue was up 9.2% compared to the same quarter last year. Analysts predict that Costco Wholesale Corporation will post 20.31 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were issued a $1.47 dividend. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. 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%. Costco Wholesale's payout ratio is presently 30.58%.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Wells Fargo & Company lifted their target price 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. Bank of America assumed coverage on shares of Costco Wholesale in a research note on Friday, February 27th. They set a "buy" rating and a $1,185.00 target price on the stock. Raymond James Financial lifted their target price on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an "outperform" rating in a research note on Friday, March 6th. Mizuho lifted their target price on shares of Costco Wholesale from $1,065.00 to $1,100.00 and gave the company an "outperform" rating in a research note on Thursday, April 16th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an "overweight" rating in a research note on Friday, April 17th. Twenty-two 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.com, the company presently has an average rating of "Moderate Buy" and an average target price of $1,047.27.

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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