Deuterium Capital Management LLC Makes New Investment in Costco Wholesale Corporation $COST

Key Points

• Deuterium Capital Management opened a new position in Costco during the fourth quarter, buying 4,050 shares worth about $3.49 million. The stake represents 5.1% of the fund’s portfolio and is now its 8th-largest holding.
• Costco continues to draw broad institutional interest, with hedge funds and other investors owning 68.48% of the company’s shares. Several smaller firms also added to their positions during recent quarters.
• The article highlights mixed post-earnings sentiment: Costco reported strong comparable sales growth and revenue, but the stock has been under pressure as investors worry about valuation and slowing momentum. Analysts remain largely positive, with a consensus Moderate Buy rating and an average price target of $1,056.32.

Deuterium Capital Management LLC bought a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 4,050 shares of the retailer's stock, valued at approximately $3,492,000. Costco Wholesale accounts for 5.1% of Deuterium Capital Management LLC's portfolio, making the stock its 8th largest holding.

A number of other institutional investors have also recently bought and sold shares of the business. Brown Wealth Management LLC grew its holdings in Costco Wholesale by 3.7% during the 3rd quarter. Brown Wealth Management LLC now owns 305 shares of the retailer's stock worth $282,000 after acquiring an additional 11 shares during the period. Caliber Wealth Management LLC KS grew its holdings in shares of Costco Wholesale by 1.7% in the 3rd quarter. Caliber Wealth Management LLC KS now owns 655 shares of the retailer's stock valued at $606,000 after buying an additional 11 shares during the period. Somerset Group LLC grew its holdings in shares of Costco Wholesale by 0.3% in the 3rd quarter. Somerset Group LLC now owns 4,220 shares of the retailer's stock valued at $3,906,000 after buying an additional 11 shares during the period. Hughes Financial Services LLC grew its holdings in shares of Costco Wholesale by 4.3% in the 3rd quarter. Hughes Financial Services LLC now owns 268 shares of the retailer's stock valued at $245,000 after buying an additional 11 shares during the period. Finally, Bank & Trust Co grew its holdings in shares of Costco Wholesale by 18.3% in the 4th quarter. Bank & Trust Co now owns 71 shares of the retailer's stock valued at $61,000 after buying an additional 11 shares during the period. Institutional investors and hedge funds own 68.48% of the company's stock.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco’s Q3 comparable sales rose 9.8%, with adjusted comps up 6.6% on higher traffic and bigger baskets, showing healthy underlying demand. Is Costco's 9.8% Comparable Sales Growth Stronger Than It Looks?
• Positive Sentiment: Analysts at Jefferies said Costco’s value strategy, membership growth, fuel business, and digital operations continue to support sales momentum after a strong fiscal third quarter. Costco's value strategy, membership growth support outlook after strong quarter, says Jefferies
• Positive Sentiment: DA Davidson reiterated a bullish view, calling Costco a “best-of-breed” retailer with strong returns on equity and a $1,000 price target. Costco Wholesale Is A 'Best-of-Breed Bison,' Analyst Explains Why
• Neutral Sentiment: Some commentary notes that part of the sales growth was boosted by fuel and foreign exchange, suggesting the headline comp number may overstate the core business trend. Is Costco's 9.8% Comparable Sales Growth Stronger Than It Looks?
• Neutral Sentiment: Several articles emphasize that despite strong revenue growth, the stock has not been able to build momentum, implying investors may already expect excellent results from Costco. Why Even 12% Revenue Growth in Q3 Wasn't Enough to Give Costco's Stock a Boost
• Negative Sentiment: Costco’s stock has been falling in the wake of earnings, with investors seemingly taking profits or worrying that membership growth is slowing relative to sales momentum. Why analysts are backing Costco despite its post-earnings slump

Insider Activity at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the transaction, the executive vice president directly owned 6,121 shares in the company, valued at $6,139,485.42. This represents a 10.66% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.10% of the stock is currently owned by corporate insiders.

Costco Wholesale Price Performance

Shares of NASDAQ COST opened at $946.11 on Tuesday. The firm has a market cap of $419.74 billion, a PE ratio of 47.59, a PEG ratio of 4.70 and a beta of 0.88. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. 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 moving average price of $1,007.23 and a 200 day moving average price of $963.04.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its 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). The company had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a return on equity of 28.72% and a net margin of 3.01%.During the same period in the previous year, the company posted $4.28 earnings per share. Research analysts predict that Costco Wholesale Corporation will post 20.36 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The firm also recently disclosed 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. The ex-dividend date was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio (DPR) is currently 30.58%.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on COST. Evercore set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday, March 2nd. Robert W. Baird set a $1,100.00 price target on shares of Costco Wholesale in a report on Thursday, February 5th. Weiss Ratings raised shares of Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, March 17th. Sanford C. Bernstein boosted their price target on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an "outperform" rating in a report on Friday. Finally, Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday. Twenty-two analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $1,056.32.

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.

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.