Cumberland Partners Ltd Increases Stock Position in Costco Wholesale Corporation $COST

Key Points

• Cumberland Partners Ltd increased its Costco stake by 7.4% in the first quarter, buying 3,134 more shares and lifting its position to 45,532 shares valued at about $45.4 million.
• Costco reported quarterly earnings of $4.93 per share, slightly below expectations, while revenue came in at $70.53 billion, ahead of analyst estimates. Analysts still expect the company to generate 20.42 EPS for the current fiscal year.
• The company announced a quarterly dividend of $1.47 per share, payable August 7, and Wall Street remains upbeat overall with a “Moderate Buy” consensus and an average price target of $1,059.07.

Cumberland Partners Ltd grew its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 7.4% in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 45,532 shares of the retailer's stock after buying an additional 3,134 shares during the quarter. Costco Wholesale accounts for approximately 3.4% of Cumberland Partners Ltd's holdings, making the stock its 7th biggest holding. Cumberland Partners Ltd's holdings in Costco Wholesale were worth $45,369,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in COST. Diamant Asset Management Inc. increased its stake in Costco Wholesale by 99,278.0% in the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after acquiring an additional 6,720,130 shares during the period. Norges Bank bought a new position in Costco Wholesale during the fourth quarter worth about $5,195,415,000. Corient Private Wealth LLC lifted its stake in Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock worth $5,282,182,000 after purchasing an additional 5,472,968 shares during the period. Cardano Risk Management B.V. boosted its holdings in Costco Wholesale by 907.1% during the fourth quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer's stock valued at $1,539,346,000 after purchasing an additional 1,607,833 shares in the last quarter. Finally, Amundi boosted its holdings in Costco Wholesale by 45.0% during the third quarter. Amundi now owns 3,176,606 shares of the retailer's stock valued at $2,893,697,000 after purchasing an additional 986,182 shares in the last quarter. 68.48% of the stock is owned by institutional investors.

Costco Wholesale Stock Up 1.0%

Shares of COST opened at $935.03 on Friday. The company has a market capitalization of $414.67 billion, a P/E ratio of 47.03, a PEG ratio of 4.48 and a beta of 0.88. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The business's 50 day simple moving average is $965.91 and its 200-day simple moving average is $979.93.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share 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 business had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same period in the prior year, the business earned $4.28 earnings per share. As a group, sell-side analysts predict that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The firm also recently announced 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 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Friday, July 24th. Costco Wholesale's dividend payout ratio is presently 29.58%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the company. Deutsche Bank Aktiengesellschaft increased their target price on Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Mizuho set a $1,100.00 price target on Costco Wholesale in a research report on Monday, June 1st. Oppenheimer increased their price objective on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 19th. BTIG Research reissued a "buy" rating and set a $1,125.00 price objective on shares of Costco Wholesale in a report on Friday, May 29th. Finally, Bank of America boosted their target price on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a "buy" rating in a research note on Friday, May 29th. Twenty-two analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $1,059.07.

Insider Buying and Selling at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale 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 transaction, the director directly 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 filing with the SEC, which is available through the SEC website. Company insiders own 0.10% of the company's stock.

Trending Headlines about 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.

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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