Costco Wholesale Corporation $COST Stock Holdings Lessened by Gabelli Funds LLC

Key Points

• Gabelli Funds LLC cut its Costco stake by 10.6% in the first quarter, selling 7,710 shares and leaving it with 64,937 shares valued at about $64.7 million.
• Analysts remain broadly positive on Costco, with a consensus rating of “Moderate Buy” and an average price target of $1,059.07, even as some firms kept neutral ratings.
• Costco reported mixed quarterly results and continued to reward shareholders: EPS came in at $4.93, just below estimates, while revenue topped expectations at $70.53 billion; the company also announced a quarterly dividend of $1.47 per share.

Gabelli Funds LLC reduced its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 10.6% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 64,937 shares of the retailer's stock after selling 7,710 shares during the quarter. Gabelli Funds LLC's holdings in Costco Wholesale were worth $64,705,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in Costco Wholesale in the 4th quarter worth approximately $27,000. Mcguire Capital Advisors Inc. purchased a new position in shares of Costco Wholesale during the 4th quarter valued at $28,000. Lifetime Wealth Management P.C. purchased a new position in shares of Costco Wholesale during the 4th quarter valued at $28,000. Manning & Napier Advisors LLC increased its stake in shares of Costco Wholesale by 750.0% in the first quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer's stock worth $34,000 after acquiring an additional 30 shares during the last quarter. Finally, Entrust Financial LLC acquired a new position in shares of Costco Wholesale in the fourth quarter worth $31,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on COST shares. DA Davidson reissued a "neutral" rating and set a $1,000.00 price objective on shares of Costco Wholesale in a research report on Thursday, June 4th. Citigroup initiated coverage on Costco Wholesale in a research report on Thursday, June 18th. They issued a "neutral" rating and a $1,020.00 target price on the stock. Telsey Advisory Group raised their price target on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an "outperform" rating in a research note on Thursday, April 9th. Sanford C. Bernstein lifted their price target on Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an "outperform" rating in a report on Friday, May 29th. Finally, Oppenheimer boosted their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a research note on Tuesday, May 19th. Twenty-two analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $1,059.07.

Costco Wholesale Stock Up 1.0%

COST stock opened at $935.03 on Friday. The firm has a market cap of $414.67 billion, a PE ratio of 47.03, a PEG ratio of 4.48 and a beta of 0.88. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a fifty day simple moving average of $965.91 and a 200 day simple moving average of $979.93. 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 (NASDAQ:COST - Get Free Report) last posted its earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The business had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same period in the previous year, the company earned $4.28 earnings per share. Sell-side analysts anticipate that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

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

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Record demand for Costco Gas is driving more store visits, which can support merchandise sales and membership renewals by increasing overall customer traffic. Costco Gas Demand Hits Record as Low Prices Drive Member Visits
• Positive Sentiment: Costco was highlighted as a stock that can hold up if inflation stays elevated, with its membership model and scale seen as a defensive advantage for investors. 2 Stocks Built to Thrive If Inflation Refuses to Fade (COST)
• Positive Sentiment: Analysts continue to view Costco favorably overall, with the company reported to have a “Moderate Buy” consensus recommendation. Costco Wholesale Corporation NASDAQ: COST Receives Consensus Recommendation of "Moderate Buy" from Analysts
• Neutral Sentiment: Some shoppers may be eligible for cash from Costco’s $14 million settlement in Washington, which is a consumer-relations issue but does not appear large enough to materially change the investment case. Some Costco shoppers could qualify for cash in settlement payout
• Neutral Sentiment: Short interest data showed 0 shares reported, offering no meaningful new signal on trading pressure or sentiment.

Insider Activity at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of the 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 transaction, the director owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate 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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