Costco Wholesale Corporation $COST Stock Position Lifted by Destination Wealth Management

Key Points

• Destination Wealth Management increased its Costco stake by 3.3% in the fourth quarter, bringing its position to 73,939 shares valued at about $63.8 million. Institutional investors overall still own a large majority of the company, at 68.48%.
• Costco reported Q4 EPS of $4.93, narrowly missing estimates by a penny, while revenue came in at $70.53 billion, above expectations. The company also raised its quarterly dividend to $1.47 per share from $1.30.
• Analysts remain broadly positive on COST, with a consensus rating of Moderate Buy and an average target price of $1,060.41. Recent notes from several firms included higher price targets, even as Costco trades at a premium valuation.

Destination Wealth Management lifted its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 3.3% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 73,939 shares of the retailer's stock after purchasing an additional 2,363 shares during the quarter. Costco Wholesale accounts for approximately 1.7% of Destination Wealth Management's holdings, making the stock its 20th largest position. Destination Wealth Management's holdings in Costco Wholesale were worth $63,760,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently modified their holdings of COST. Brighton Jones LLC boosted its stake in Costco Wholesale by 12.3% during the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock valued at $18,165,000 after buying an additional 2,172 shares in the last quarter. Revolve Wealth Partners LLC boosted its stake in Costco Wholesale by 13.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock valued at $1,029,000 after buying an additional 130 shares in the last quarter. Sivia Capital Partners LLC boosted its stake in Costco Wholesale by 4.5% during the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock valued at $3,814,000 after buying an additional 165 shares in the last quarter. Pinnacle Wealth Planning Services Inc. boosted its stake in Costco Wholesale by 1.1% during the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock valued at $2,089,000 after buying an additional 23 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its stake in Costco Wholesale by 2.2% during the second quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock valued at $8,416,000 after buying an additional 182 shares in the last quarter. Institutional investors own 68.48% of the company's stock.

Costco Wholesale Trading Up 0.7%

NASDAQ:COST opened at $982.35 on Friday. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50. The firm has a market capitalization of $435.65 billion, a price-to-earnings ratio of 49.41, a price-to-earnings-growth ratio of 4.76 and a beta of 0.88. The stock has a fifty day simple moving average of $1,005.34 and a 200 day simple moving average of $966.74.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same period in the prior year, the company posted $4.28 earnings per share. Sell-side analysts forecast that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were paid a dividend of $1.47 per share. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. 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%. Costco Wholesale's dividend payout ratio (DPR) is 29.58%.

Analyst Ratings Changes

Several research analysts recently weighed in on COST shares. Telsey Advisory Group raised their target price on Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an "outperform" rating in a research note on Thursday, April 9th. Rothschild & Co Redburn raised their target price on Costco Wholesale from $890.00 to $1,000.00 and gave the company a "neutral" rating in a research note on Tuesday, February 17th. BTIG Research reaffirmed a "buy" rating and set a $1,125.00 target price on shares of Costco Wholesale in a research note on Friday, May 29th. UBS Group raised their target price on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a research note on Wednesday, May 20th. Finally, Wells Fargo & Company raised their target price on 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. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $1,060.41.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Erste Group Bank lifted its FY2026 and FY2027 earnings forecasts for Costco, signaling expectations for stronger profitability ahead.
• Positive Sentiment: Commentary in 24/7 Wall St. emphasized Costco’s membership-fee model as a resilient source of recurring revenue that can support long-term earnings growth.
• Positive Sentiment: Barchart coverage noted Costco as one of the retail names rewarding shareholders with a higher dividend, reinforcing the company’s capital-return appeal.
• Neutral Sentiment: Coverage that Costco offers shopping without a membership in limited cases is mainly informational and not likely to materially affect the stock.
• Neutral Sentiment: The Iowa court decision involving a former Costco manager appears to be a legal headline with limited direct impact on the company’s overall financial outlook.
• Negative Sentiment: Bloomberg reported rising plastic input costs may lead to higher prices for consumer goods later this year, which could add inflation pressure to Costco’s retail environment and potentially squeeze margins or demand.

About Costco Wholesale

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.

Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.