Federated Hermes Inc. Increases Holdings in Costco Wholesale Corporation (NASDAQ:COST)

Key Points

• Federated Hermes Inc. increased its stake in Costco Wholesale Corporation by 4.0%, now owning 432,534 shares valued at approximately $409 million, making it the firm's 15th largest holding.
• Costco recently announced a quarterly dividend of $1.30 per share, with an annualized yield of 0.56%, which will be paid on August 15th.
• Analysts have set a consensus target price of $1,037.48 for Costco shares, with the stock being rated as a "Moderate Buy" by most analysts.

Federated Hermes Inc. raised its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 4.0% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 432,534 shares of the retailer's stock after acquiring an additional 16,788 shares during the period. Costco Wholesale comprises 0.9% of Federated Hermes Inc.'s holdings, making the stock its 15th biggest holding. Federated Hermes Inc. owned approximately 0.10% of Costco Wholesale worth $409,082,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of COST. Investment Management Corp VA ADV acquired a new position in shares of Costco Wholesale in the fourth quarter worth approximately $25,000. Aspect Partners LLC lifted its stake in shares of Costco Wholesale by 24.4% in the first quarter. Aspect Partners LLC now owns 56 shares of the retailer's stock worth $53,000 after acquiring an additional 11 shares during the period. Capital A Wealth Management LLC bought a new stake in Costco Wholesale in the fourth quarter worth approximately $58,000. Mascagni Wealth Management Inc. bought a new stake in Costco Wholesale in the fourth quarter worth approximately $59,000. Finally, Bank & Trust Co increased its holdings in Costco Wholesale by 20.4% in the first quarter. Bank & Trust Co now owns 65 shares of the retailer's stock worth $61,000 after purchasing an additional 11 shares in the last quarter. Institutional investors own 68.48% of the company's stock.

Costco Wholesale Price Performance

Shares of NASDAQ:COST traded up $14.65 on Friday, hitting $952.99. The company's stock had a trading volume of 1,952,063 shares, compared to its average volume of 2,210,222. The company has a market capitalization of $422.63 billion, a PE ratio of 54.06, a PEG ratio of 5.77 and a beta of 0.97. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.02 and a quick ratio of 0.52. Costco Wholesale Corporation has a 1 year low of $793.00 and a 1 year high of $1,078.23. The company has a 50-day simple moving average of $984.46 and a 200 day simple moving average of $983.58.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Thursday, May 29th. The retailer reported $4.28 earnings per share for the quarter, beating analysts' consensus estimates of $4.24 by $0.04. The company had revenue of $63.21 billion for the quarter, compared to analysts' expectations of $62.93 billion. Costco Wholesale had a return on equity of 30.48% and a net margin of 2.92%. Costco Wholesale's revenue for the quarter was up 8.0% compared to the same quarter last year. During the same period last year, the firm posted $3.78 EPS. Sell-side analysts forecast that Costco Wholesale Corporation will post 18.03 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 15th. Investors of record on Friday, August 1st will be given a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a yield of 0.5%. The ex-dividend date is Friday, August 1st. Costco Wholesale's dividend payout ratio (DPR) is presently 29.50%.

Insider Buying and Selling

In other news, EVP Patrick J. Callans sold 3,000 shares of Costco Wholesale stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $1,002.77, for a total value of $3,008,310.00. Following the sale, the executive vice president directly owned 58,543 shares in the company, valued at approximately $58,705,164.11. This trade represents a 4.87% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Pierre Riel sold 2,000 shares of Costco Wholesale stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $1,014.15, for a total value of $2,028,300.00. Following the sale, the executive vice president owned 8,210 shares in the company, valued at $8,326,171.50. This represents a 19.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 9,547 shares of company stock valued at $9,472,510 in the last 90 days. 0.18% of the stock is owned by insiders.

Wall Street Analyst Weigh In

COST has been the subject of several recent research reports. Mizuho initiated coverage on Costco Wholesale in a report on Friday, April 11th. They set a "neutral" rating and a $975.00 price objective for the company. Truist Financial boosted their price objective on Costco Wholesale from $995.00 to $1,042.00 and gave the company a "hold" rating in a report on Friday, May 30th. Evercore ISI decreased their price target on Costco Wholesale from $1,075.00 to $1,060.00 and set an "outperform" rating for the company in a report on Tuesday, June 17th. Morgan Stanley upped their price target on Costco Wholesale from $1,150.00 to $1,225.00 and gave the stock an "overweight" rating in a report on Friday, May 30th. Finally, Telsey Advisory Group reiterated an "outperform" rating and set a $1,100.00 price target on shares of Costco Wholesale in a report on Thursday, July 10th. Nine research analysts have rated the stock with a hold rating and twenty have given a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $1,037.48.

Costco Wholesale Company Profile

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.