Costco Wholesale Corporation $COST Stock Position Lowered by Hilltop Holdings Inc.

Key Points

• Hilltop Holdings reduced its Costco stake by 41.6% in the first quarter, selling 2,944 shares and leaving it with 4,134 shares valued at about $4.12 million.
• Costco’s latest earnings slightly missed expectations, reporting $4.93 EPS versus the $4.94 consensus, while revenue came in above estimates at $70.53 billion.
• Analysts remain broadly positive on Costco, with a consensus rating of “Moderate Buy” and an average price target of $1,059.07; the company also announced a quarterly dividend of $1.47 per share.

Hilltop Holdings Inc. decreased its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 41.6% in the first quarter, according to its most recent 13F filing with the SEC. The firm owned 4,134 shares of the retailer's stock after selling 2,944 shares during the period. Hilltop Holdings Inc.'s holdings in Costco Wholesale were worth $4,119,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in Costco Wholesale during the fourth quarter valued at approximately $27,000. Lifetime Wealth Management P.C. bought a new stake in Costco Wholesale in the fourth quarter worth approximately $28,000. Mcguire Capital Advisors Inc. bought a new stake in Costco Wholesale in the fourth quarter worth approximately $28,000. Entrust Financial LLC acquired a new position in shares of Costco Wholesale during the 4th quarter worth $31,000. Finally, Joseph Group Capital Management acquired a new position in shares of Costco Wholesale during the 4th quarter worth $33,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $935.03 on Friday. 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 $414.67 billion, a PE ratio of 47.03, a PEG ratio of 4.48 and a beta of 0.88. The business's 50 day moving average is $965.91 and its 200-day moving average is $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 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 firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same quarter in the previous year, the company posted $4.28 earnings per share. Sell-side analysts predict that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Dividend Announcement

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

Analysts Set New Price Targets

COST has been the topic of several recent analyst reports. Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a report on Monday, June 1st. Citigroup started coverage on Costco Wholesale in a research note on Thursday, June 18th. They issued a "neutral" rating and a $1,020.00 price objective on the stock. Deutsche Bank Aktiengesellschaft increased their target price on Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. 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 report on Thursday, April 9th. Finally, Weiss Ratings lowered Costco Wholesale from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, June 23rd. Twenty-two analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,059.07.

Insider Activity at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of the company's stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the sale, the director owned 4,779 shares of the company's stock, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction 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 News Summary

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.

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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