Fortune 45 LLC Reduces Position in Costco Wholesale Corporation $COST

Key Points

• Fortune 45 LLC sharply reduced its Costco stake by 82.2% in the first quarter, selling 1,581 shares and leaving it with 342 shares valued at about $341,000.
• Wall Street remains broadly positive on Costco, with 22 analysts rating it a Buy and the consensus target price sitting at $1,061.45; several firms recently reiterated buy ratings and raised price targets.
• Costco reported mixed recent results and continued shareholder returns: quarterly EPS of $4.93 slightly missed estimates, revenue topped forecasts, and the company raised its quarterly dividend to $1.47 per share from $1.30.

Fortune 45 LLC decreased its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 82.2% during the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 342 shares of the retailer's stock after selling 1,581 shares during the period. Fortune 45 LLC's holdings in Costco Wholesale were worth $341,000 as of its most recent SEC filing.

Several other hedge funds also recently made changes to their positions in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in Costco Wholesale in the 4th quarter worth $27,000. Lifetime Wealth Management P.C. purchased a new position in Costco Wholesale during the 4th quarter valued at about $28,000. Mcguire Capital Advisors Inc. bought a new position in Costco Wholesale during the 4th quarter valued at approximately $28,000. Entrust Financial LLC bought a new position in Costco Wholesale during the 4th quarter valued at approximately $31,000. Finally, Joseph Group Capital Management purchased a new stake in Costco Wholesale in the 4th quarter worth approximately $33,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on COST shares. TD Cowen reiterated a "buy" rating and issued a $1,175.00 price objective on shares of Costco Wholesale in a research report on Wednesday, June 3rd. HC Wainwright reaffirmed a "buy" rating on shares of Costco Wholesale in a research note on Monday, June 1st. BTIG Research reaffirmed a "buy" rating and issued a $1,125.00 price target on shares of Costco Wholesale in a research note on Friday, May 29th. Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday, June 1st. Finally, UBS Group boosted their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a research report on Wednesday, May 20th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $1,061.45.

Costco Wholesale Price Performance

COST stock opened at $951.67 on Monday. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The company has a market capitalization of $422.05 billion, a price-to-earnings ratio of 47.87, a price-to-earnings-growth ratio of 4.61 and a beta of 0.88. The business's 50 day moving average price is $990.38 and its two-hundred day moving average price is $973.36. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07.

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 firm had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $70.12 billion. During the same quarter in the previous year, the business earned $4.28 EPS. As a group, analysts forecast that Costco Wholesale Corporation will post 20.38 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were given a dividend of $1.47 per share. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale's payout ratio is 29.58%.

Insider Buying and Selling

In related news, Director Kenneth D. Denman sold 885 shares of the company's stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the sale, the director owned 4,779 shares in the company, valued at $4,575,653.55. This represents a 15.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.10% of the stock is owned by insiders.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco is expanding its footprint with several new warehouse openings and planned locations across the U.S., which could support membership growth and future revenue. Costco to Open New Stores Across the U.S.: Full List of Locations
• Positive Sentiment: New store approvals in California and other regions suggest Costco’s growth runway remains intact, even if some local residents are pushing back. New Costco approved in California, but some locals say location is 'unnecessary'
• Positive Sentiment: Costco began alcohol sales at a Pennsylvania store, another example of incremental in-store offerings that can increase traffic and basket size. Costco Wholesale begins alcohol sales at Pennsylvania store
• Neutral Sentiment: Articles on a possible special dividend and a potential stock split are mostly speculative; they may interest shareholders, but they do not appear to be the main near-term driver of the stock. Will Costco Pay a Special Dividend in 2026? Here's What History Says.
• Neutral Sentiment: Analysts and commentators continue to debate Costco’s valuation, noting strong long-term returns but also that the stock looks expensive on earnings, which can cap upside. Costco (COST) Stock Looks Strong On Returns But Expensive On Earnings
• Negative Sentiment: One recent analysis said Costco’s growth engine may be losing momentum as lower fuel prices could reduce a key traffic driver and create execution risk for the stock. Costco’s secret growth engine may be running out of gas
• Negative Sentiment: Another report highlighted that Costco has underperformed the broader market over the past three months, reflecting investor concern about its premium valuation. Why Costco Stock (COST) Underperformed the S&P 500 Over the Past 3 Months

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.

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