Dearborn Partners LLC Sells 1,035 Shares of Costco Wholesale Corporation $COST

Key Points

• Dearborn Partners LLC trimmed its Costco stake by 2.9% in the fourth quarter, selling 1,035 shares and leaving it with 34,863 shares worth about $30.1 million.
• Costco reported mixed quarterly results, with EPS of $4.93 missing estimates by a penny while revenue of $70.53 billion slightly topped forecasts; analysts still expect full-year EPS of 20.38.
• The company raised its quarterly dividend to $1.47 from $1.30, and analysts remain mostly bullish, with 22 Buy ratings and a consensus Moderate Buy target of about $1,060.41.

Dearborn Partners LLC reduced its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 2.9% in the 4th quarter, according to its most recent filing with the SEC. The fund owned 34,863 shares of the retailer's stock after selling 1,035 shares during the period. Costco Wholesale comprises 1.5% of Dearborn Partners LLC's holdings, making the stock its 24th largest position. Dearborn Partners LLC's holdings in Costco Wholesale were worth $30,064,000 at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. Hurley Capital LLC lifted its stake in Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock valued at $31,000 after purchasing an additional 18 shares during the last quarter. Entrust Financial LLC acquired a new stake in Costco Wholesale in the 4th quarter valued at about $31,000. Abich Financial Wealth Management LLC acquired a new stake in Costco Wholesale in the 3rd quarter valued at about $34,000. Collier Financial acquired a new stake in Costco Wholesale in the 3rd quarter valued at about $35,000. Finally, Joseph Group Capital Management acquired a new stake in Costco Wholesale in the 4th quarter valued at about $33,000. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Costco Wholesale Trading Down 0.0%

Shares of COST stock opened at $971.87 on Friday. The firm has a 50 day moving average price of $1,006.71 and a two-hundred day moving average price of $963.99. The company has a quick ratio of 0.59, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The company has a market capitalization of $431.00 billion, a PE ratio of 48.89, a price-to-earnings-growth ratio of 4.71 and a beta of 0.88. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued 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). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The company had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same quarter last year, the business earned $4.28 earnings per share. As a group, analysts predict that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were given a $1.47 dividend. The ex-dividend date was Friday, May 1st. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. 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 presently 29.58%.

Insider Buying and Selling at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the completion of the sale, the executive vice president directly owned 6,121 shares in the company, valued at approximately $6,139,485.42. The trade was a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.10% of the company's stock.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco posted another strong month, with May net sales up 14.5% year over year to $24.01 billion and comparable sales still running at a healthy pace, reinforcing the view that traffic and spending trends remain solid. Costco Wholesale Corporation Reports May Sales Results
• Positive Sentiment: Analysts continued to point to Costco’s defensive fundamentals, strong U.S. comparable sales, fuel-driven traffic, and growing digital business as reasons for optimism on the stock. Costco Stock (COST) Keeps Wall Street Split despite Accelerating Sales
• Positive Sentiment: Costco’s ability to hold up during the broader market sell-off underscored its reputation as a defensive retailer, which may have helped support investor interest. Why Costco Stock Held Steady During Friday's Market Sell-Off
• Neutral Sentiment: Several articles framed Costco as a high-quality long-term compounder, but also emphasized that its premium valuation leaves less room for error if growth slows. Costco stock price shocks market despite major blowout quarter
• Neutral Sentiment: Costco’s valuation remains a debate point on Wall Street, with some analysts maintaining Buy ratings and high price targets while others argue the stock already reflects much of the good news. Costco: Robust Comps and Reaccelerating Digital Sales Support Buy Rating, Price Target Reaffirmed at $1275
• Negative Sentiment: One recent note argued that Costco’s strong quarter was not enough to offset valuation worries, suggesting investors may be hesitant to pay up after the recent sales-driven rally. Costco's Strong Quarter Still Leaves Investors with a Valuation Problem

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the stock. JPMorgan Chase & Co. raised their target price on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an "overweight" rating in a research note on Friday, April 17th. TD Cowen reiterated a "buy" rating and issued a $1,175.00 target price on shares of Costco Wholesale in a research note on Wednesday. Sanford C. Bernstein raised their price objective on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research report on Friday, May 29th. Raymond James Financial raised their price objective on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a research report on Friday, March 6th. Finally, Rothschild & Co Redburn raised their price objective on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 17th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $1,060.41.

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.

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.