Diversify Wealth Management LLC Raises Stock Position in Costco Wholesale Corporation $COST

Key Points

• Diversify Wealth Management LLC increased its Costco stake by 137.9% in Q1, buying 17,470 additional shares and bringing its total holdings to 30,141 shares worth about $30.1 million.
• Costco shares were trading around $916.25, below both its 50-day and 200-day moving averages, after the company recently reported quarterly EPS of $4.93, slightly missing expectations while revenue came in above estimates.
• The company declared a quarterly dividend of $1.47 per share payable August 7, and analysts remain broadly positive overall with a consensus rating of Moderate Buy and an average target price of $1,061.10.

Diversify Wealth Management LLC boosted its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 137.9% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 30,141 shares of the retailer's stock after purchasing an additional 17,470 shares during the period. Costco Wholesale makes up approximately 0.5% of Diversify Wealth Management LLC's holdings, making the stock its 29th largest position. Diversify Wealth Management LLC's holdings in Costco Wholesale were worth $30,100,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. Towercrest Capital Management boosted its stake in shares of Costco Wholesale by 5.5% in the 1st quarter. Towercrest Capital Management now owns 385 shares of the retailer's stock worth $383,000 after buying an additional 20 shares during the last quarter. Valmark Advisers Inc. grew its stake in shares of Costco Wholesale by 4.1% during the 1st quarter. Valmark Advisers Inc. now owns 2,593 shares of the retailer's stock valued at $2,584,000 after purchasing an additional 101 shares during the period. Pittenger & Anderson Inc. increased its position in shares of Costco Wholesale by 0.9% during the 1st quarter. Pittenger & Anderson Inc. now owns 52,116 shares of the retailer's stock valued at $51,930,000 after purchasing an additional 448 shares during the last quarter. Seaside Wealth Management Inc. lifted its stake in shares of Costco Wholesale by 2.5% in the 1st quarter. Seaside Wealth Management Inc. now owns 453 shares of the retailer's stock worth $451,000 after purchasing an additional 11 shares during the period. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its position in Costco Wholesale by 0.3% during the first quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 103,396 shares of the retailer's stock valued at $103,027,000 after buying an additional 310 shares during the period. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Trading Up 0.4%

COST traded up $3.28 during trading on Friday, reaching $916.25. The company had a trading volume of 2,099,105 shares, compared to its average volume of 2,488,933. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50. The stock has a market cap of $406.34 billion, a P/E ratio of 46.09, a PEG ratio of 4.44 and a beta of 0.88. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The business has a 50 day simple moving average of $983.66 and a 200-day simple moving average of $975.25.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released 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 business had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the prior year, the company posted $4.28 EPS. On average, equities analysts anticipate that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

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

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on COST. Telsey Advisory Group boosted their price objective on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an "outperform" rating in a research report on Thursday, April 9th. Weiss Ratings downgraded shares of Costco Wholesale from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, June 23rd. Oppenheimer raised their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a report on Tuesday, May 19th. Truist Financial lifted their target price on Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a research note on Friday, May 29th. Finally, Sanford C. Bernstein boosted their target price on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a report on Friday, May 29th. Twenty-two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $1,061.10.

Key Costco Wholesale News

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

• Positive Sentiment: Analysts remained generally constructive, with multiple firms reiterating Buy/Overweight views and price targets around or above current levels, suggesting Wall Street still sees upside for Costco despite the recent pullback.
• Positive Sentiment: Costco announced a quarterly dividend of $1.47 per share, reinforcing its shareholder-return profile. Costco stock overview and dividend note
• Positive Sentiment: Management also expanded its digital wallet feature, which could improve checkout speed and customer convenience. Costco makes payment change that could speed up checkout for members
• Neutral Sentiment: Short-interest data showed no meaningful change, with reported short interest at zero shares, offering little signal for near-term trading.
• Negative Sentiment: Investors are focusing on a slowdown in June sales momentum and weaker adjusted comparable-sales growth, which raises concern that Costco may be losing some near-term growth speed. Reuters article reference
• Negative Sentiment: Competition is intensifying as Walmart and Kroger cut prices, increasing pressure on Costco’s value proposition and margin outlook.
• Negative Sentiment: New headlines about a class-action lawsuit alleging Costco sold protein powder with heavy metals add legal and reputational risk. Consumers sue Costco over heavy metals in protein powder

Insider Activity

In other news, Director Kenneth D. Denman sold 885 shares of the firm's stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.10% of the company's stock.

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.