Costco Wholesale Corporation $COST Shares Sold by Principal Financial Group Inc.

Key Points

• Principal Financial Group trimmed its Costco stake by 3.0% in the first quarter, selling 35,583 shares and ending with about 1.14 million shares valued at roughly $1.14 billion.
• Costco reported Q1 earnings of $4.93 per share, narrowly missing estimates by a penny, while revenue came in at $70.53 billion, slightly above expectations. Analysts still expect the company to earn 20.38 EPS for the current fiscal year.
• The company announced a quarterly dividend of $1.47 per share, payable on August 7, and shares were trading up modestly at about $926.43. Analysts remain largely positive, with a consensus rating of Moderate Buy and an average price target of $1,059.07.

Principal Financial Group Inc. lowered its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 3.0% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,140,620 shares of the retailer's stock after selling 35,583 shares during the quarter. Principal Financial Group Inc. owned about 0.26% of Costco Wholesale worth $1,136,550,000 at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of COST. Chicago Partners Investment Group LLC raised its position in Costco Wholesale by 18.7% in the first quarter. Chicago Partners Investment Group LLC now owns 9,206 shares of the retailer's stock valued at $9,240,000 after purchasing an additional 1,448 shares during the period. Parr Mcknight Wealth Management Group LLC lifted its stake in Costco Wholesale by 43.6% during the 1st quarter. Parr Mcknight Wealth Management Group LLC now owns 6,876 shares of the retailer's stock worth $6,852,000 after acquiring an additional 2,088 shares in the last quarter. GHE LLC boosted its holdings in Costco Wholesale by 121.8% during the 1st quarter. GHE LLC now owns 13,601 shares of the retailer's stock valued at $13,552,000 after acquiring an additional 7,468 shares during the period. Vantage Point Financial LLC purchased a new position in Costco Wholesale during the 1st quarter valued at about $206,000. Finally, AMF Tjanstepension AB boosted its holdings in Costco Wholesale by 10.4% during the 1st quarter. AMF Tjanstepension AB now owns 104,753 shares of the retailer's stock valued at $104,379,000 after acquiring an additional 9,832 shares during the period. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale Stock Up 1.1%

COST stock opened at $926.43 on Tuesday. The stock has a market cap of $410.85 billion, a P/E ratio of 46.60, a PEG ratio of 4.44 and a beta of 0.88. 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 twelve month low of $844.06 and a twelve month high of $1,096.50. The company's 50 day moving average is $981.90 and its two-hundred day moving average is $976.64.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted 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 company had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $70.12 billion. During the same period last year, the business earned $4.28 earnings per share. Research analysts expect that Costco Wholesale Corporation will post 20.38 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

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

Insider Buying and Selling at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of the business's stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.10% of the company's stock.

Costco Wholesale News Summary

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

• Positive Sentiment: RBC Capital described Costco as one of retail’s best stories and a top industry player, pointing to its unique membership model, market share gains, and resilient consumer demand. Several articles highlighted that the stock was gaining on the analyst optimism, which helped support the shares. Article: Costco Stock (COST) Gains As Analyst Says It Is ‘One of the Best Stories in Retail’
• Positive Sentiment: Commentary on Costco’s June sales and digital growth suggested the retailer is still seeing strong demand, with its low-price, high-volume model continuing to attract shoppers and defend market share. Article: Are Costco's June Sales Enough to Defend Its Rich Valuation?
• Neutral Sentiment: Multiple pieces compared Costco with Walmart, generally framing COST as an elite defensive retailer but noting that investors are weighing Costco’s premium valuation against its growth durability. Article: Costco vs. Walmart: 1 Dividend-Paying Retail Giant Stands Above the Other
• Neutral Sentiment: Stories about Costco’s cultural popularity and employee success reinforced the brand’s strength and consumer appeal, but they are not likely to materially move the stock on their own. Article: The One Thing Everyone in America Can Agree On? Costco
• Negative Sentiment: Costco is facing a proposed class-action lawsuit over an allegedly contaminated protein powder product, which could raise concerns about quality controls and consumer trust if the case gains traction. Article: Costco (COST) Faces Protein Powder Heavy Metals Lawsuit And A Test Of Trust
• Negative Sentiment: Analysts also flagged that Costco’s rich valuation and slowing comparable-sales growth could limit further upside, even though the business remains fundamentally strong. Article: Are Costco's June Sales Enough to Defend Its Rich Valuation?

Analyst Ratings Changes

COST has been the topic of a number of recent research reports. Roth Capital boosted their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research note on Friday, May 29th. JPMorgan Chase & Co. lowered their price objective on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating for the company in a research note on Thursday, July 9th. Oppenheimer lifted 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 report on Tuesday, May 19th. Truist Financial upped their target price on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research note on Friday, May 29th. Finally, Wells Fargo & Company upped their target price on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 9th. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $1,059.07.

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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