Costco Wholesale Corporation $COST Stock Holdings Cut by Cullinan Associates Inc.

Key Points

• Cullinan Associates Inc. cut its Costco position by 26.7% in the first quarter, selling 3,669 shares and leaving it with 10,048 shares valued at about $10.0 million.
• Costco shares were up 0.4% on Friday to $916.25, but the stock remains below its 50-day and 200-day moving averages and well off its 12-month high.
• The company reported mixed quarterly results, missing EPS by $0.01 while slightly beating revenue estimates, and it also announced a quarterly dividend of $1.47 per share payable August 7.

Cullinan Associates Inc. lessened its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 26.7% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 10,048 shares of the retailer's stock after selling 3,669 shares during the period. Cullinan Associates Inc.'s holdings in Costco Wholesale were worth $10,012,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of Costco Wholesale in the 4th quarter worth approximately $27,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale in the 4th quarter worth approximately $28,000. Lifetime Wealth Management P.C. acquired a new stake in Costco Wholesale during the fourth quarter valued at approximately $28,000. Manning & Napier Advisors LLC lifted its stake in Costco Wholesale by 750.0% during the first quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer's stock valued at $34,000 after purchasing an additional 30 shares during the last quarter. Finally, Entrust Financial LLC bought a new stake in Costco Wholesale during the fourth quarter worth approximately $31,000. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Trading Up 0.4%

Shares of NASDAQ:COST traded up $3.28 during mid-day trading on Friday, hitting $916.25. The stock had a trading volume of 2,099,105 shares, compared to its average volume of 2,488,933. The company's 50 day moving average is $983.66 and its 200-day moving average is $975.25. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The company has a market cap of $406.34 billion, a PE ratio of 46.09, a P/E/G ratio of 4.44 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). The firm had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period last year, the firm earned $4.28 earnings per share. On average, sell-side analysts predict that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Announces Dividend

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

Analyst Ratings Changes

Several research analysts have issued reports on COST shares. The Goldman Sachs Group lifted their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Truist Financial increased their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a research report on Friday, May 29th. Guggenheim reissued a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. TD Cowen restated a "buy" rating and issued a $1,175.00 target price on shares of Costco Wholesale in a report on Wednesday, June 3rd. Finally, Roth Capital boosted their target price on Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research report on Friday, May 29th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $1,061.10.

Costco Wholesale News Summary

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

• Positive Sentiment: Analysts remained generally constructive, with multiple firms reiterating Buy/Overweight views and price targets around or above current levels, suggesting Wall Street still sees upside for Costco despite the recent pullback.
• Positive Sentiment: Costco announced a quarterly dividend of $1.47 per share, reinforcing its shareholder-return profile. Costco stock overview and dividend note
• Positive Sentiment: Management also expanded its digital wallet feature, which could improve checkout speed and customer convenience. Costco makes payment change that could speed up checkout for members
• Neutral Sentiment: Short-interest data showed no meaningful change, with reported short interest at zero shares, offering little signal for near-term trading.
• Negative Sentiment: Investors are focusing on a slowdown in June sales momentum and weaker adjusted comparable-sales growth, which raises concern that Costco may be losing some near-term growth speed. Reuters article reference
• Negative Sentiment: Competition is intensifying as Walmart and Kroger cut prices, increasing pressure on Costco’s value proposition and margin outlook.
• Negative Sentiment: New headlines about a class-action lawsuit alleging Costco sold protein powder with heavy metals add legal and reputational risk. Consumers sue Costco over heavy metals in protein powder

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the firm's stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares in the company, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 0.10% of the company's stock.

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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