Costco Wholesale Corporation $COST Shares Sold by Clearbridge Investments LLC

Key Points

• Clearbridge Investments LLC reduced its stake in Costco by 3.4% in the fourth quarter, selling 1,545 shares and ending with 43,885 shares valued at about $37.8 million.
• Recent operating updates were positive, including record gasoline demand, digital sales up more than 21%, and lower prices on select Kirkland Signature products that could help drive traffic and member loyalty.
• Despite solid business trends, Costco’s stock has faced valuation pressure; shares were trading below their recent average levels and the stock carries a relatively high P/E ratio of 48.72.

Clearbridge Investments LLC lowered its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 3.4% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 43,885 shares of the retailer's stock after selling 1,545 shares during the quarter. Clearbridge Investments LLC's holdings in Costco Wholesale were worth $37,844,000 as of its most recent filing with the SEC.

A number of other hedge funds have also recently bought and sold shares of the company. Hurley Capital LLC boosted its holdings in shares of Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock valued at $31,000 after purchasing an additional 18 shares during the last quarter. Entrust Financial LLC acquired a new position in shares of Costco Wholesale in the 4th quarter valued at $31,000. Joseph Group Capital Management acquired a new position in shares of Costco Wholesale in the 4th quarter valued at $33,000. Abich Financial Wealth Management LLC acquired a new position in shares of Costco Wholesale in the 3rd quarter valued at $34,000. Finally, Imprint Wealth LLC acquired a new position in shares of Costco Wholesale in the 3rd quarter valued at $36,000. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco reported record demand for gasoline, which reinforces traffic and engagement at its warehouses and supports the company’s value proposition. Costco sees record demand for gas since Middle East war
• Positive Sentiment: Its digital sales jumped more than 21%, signaling continued momentum in e-commerce and omnichannel growth. Costco's Digital Sales Jumped 21% and Gas Volumes Hit a Record. So Why Did COST Stock Drop 5%?
• Positive Sentiment: Costco also lowered prices on select Kirkland Signature products, a move that could strengthen member loyalty and help drive traffic as shoppers look for value. Costco lowers prices on four private-label products across food, home goods and sports equipment aisles
• Neutral Sentiment: Short-interest data appears unreliable in the filing shown, so it does not provide a clear read on sentiment.
• Negative Sentiment: Despite the strong operational updates, investors appeared to focus on valuation and near-term stock weakness, with commentary noting the shares have been falling in recent weeks. Should You Buy Costco Wholesale Stock While It's Below $1,000?

Costco Wholesale Stock Performance

Shares of COST stock opened at $968.59 on Wednesday. The company's fifty day simple moving average is $1,006.30 and its 200-day simple moving average is $965.46. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week 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 company has a market cap of $429.55 billion, a PE ratio of 48.72, a P/E/G ratio of 4.72 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its 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 net margin of 3.01% and a return on equity of 28.04%. The business had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $70.12 billion. During the same period in the prior year, the business posted $4.28 EPS. As a group, equities research analysts anticipate that Costco Wholesale Corporation will post 20.38 EPS for the current 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 paid a $1.47 dividend. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's payout ratio is 29.58%.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Roth Mkm lifted their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a report on Friday, May 29th. DA Davidson reiterated a "neutral" rating and issued a $1,000.00 price target on shares of Costco Wholesale in a report on Thursday, June 4th. Jefferies Financial Group reiterated a "buy" rating and issued a $1,050.00 price target on shares of Costco Wholesale in a report on Thursday, March 5th. Citigroup reiterated a "neutral" rating on shares of Costco Wholesale in a report on Friday, February 20th. Finally, Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday, June 1st. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,060.41.

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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