Front Street Capital Management Inc. Reduces Stake in Costco Wholesale Corporation $COST

Key Points

• Front Street Capital Management Inc. reduced its stake in Costco Wholesale by 19.5%, owning 26,731 shares after selling 6,472 during the first quarter, with these holdings valued at approximately $25.3 million.
• Insider selling was noted, as EVP Patrick J. Callans sold 3,000 shares for around $3 million, and EVP Yoram Rubanenko sold 4,000 shares valued at about $3.9 million, reflecting decreases in their ownership.
• Several analysts have recently adjusted their price targets for Costco, with Morgan Stanley raising its target from $1,150 to $1,225, indicating continued optimism for the stock's performance.

Front Street Capital Management Inc. trimmed its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 19.5% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 26,731 shares of the retailer's stock after selling 6,472 shares during the period. Costco Wholesale comprises about 4.8% of Front Street Capital Management Inc.'s portfolio, making the stock its 8th largest position. Front Street Capital Management Inc.'s holdings in Costco Wholesale were worth $25,285,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Investment Management Corp VA ADV bought a new stake in shares of Costco Wholesale in the 4th quarter valued at about $25,000. Aspect Partners LLC boosted its holdings in shares of Costco Wholesale by 24.4% in the 1st quarter. Aspect Partners LLC now owns 56 shares of the retailer's stock valued at $53,000 after buying an additional 11 shares in the last quarter. Capital A Wealth Management LLC bought a new stake in shares of Costco Wholesale in the 4th quarter valued at about $58,000. Mascagni Wealth Management Inc. bought a new stake in shares of Costco Wholesale in the 4th quarter valued at about $59,000. Finally, Bank & Trust Co boosted its holdings in shares of Costco Wholesale by 20.4% in the 1st quarter. Bank & Trust Co now owns 65 shares of the retailer's stock valued at $61,000 after buying an additional 11 shares in the last quarter. 68.48% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Costco Wholesale

In other Costco Wholesale news, EVP Patrick J. Callans sold 3,000 shares of the firm's stock in a transaction that occurred on Monday, June 9th. The shares were sold at an average price of $1,002.77, for a total transaction of $3,008,310.00. Following the completion of the transaction, the executive vice president directly owned 58,543 shares of the company's stock, valued at approximately $58,705,164.11. This trade represents a 4.87% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Yoram Rubanenko sold 4,000 shares of the firm's stock in a transaction that occurred on Monday, July 14th. The stock was sold at an average price of $974.96, for a total transaction of $3,899,840.00. Following the transaction, the executive vice president directly owned 5,774 shares of the company's stock, valued at $5,629,419.04. This represents a 40.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 8,147 shares of company stock valued at $8,039,440. 0.18% of the stock is owned by corporate insiders.

Costco Wholesale Stock Performance

Shares of Costco Wholesale stock opened at $963.48 on Friday. The firm has a market capitalization of $427.28 billion, a P/E ratio of 54.65, a PEG ratio of 5.40 and a beta of 0.97. The company has a quick ratio of 0.52, a current ratio of 1.02 and a debt-to-equity ratio of 0.21. The company has a 50 day moving average price of $962.23 and a 200 day moving average price of $977.09. Costco Wholesale Corporation has a 52 week low of $867.16 and a 52 week high of $1,078.23.

Costco Wholesale Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Friday, August 1st were given a dividend of $1.30 per share. The ex-dividend date of this dividend was Friday, August 1st. This represents a $5.20 dividend on an annualized basis and a yield of 0.5%. Costco Wholesale's dividend payout ratio (DPR) is currently 29.50%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on COST shares. Morgan Stanley raised their price target on shares of Costco Wholesale from $1,150.00 to $1,225.00 and gave the company an "overweight" rating in a report on Friday, May 30th. JPMorgan Chase & Co. raised their price target on shares of Costco Wholesale from $1,115.00 to $1,160.00 and gave the company an "overweight" rating in a report on Thursday, August 7th. Evercore ISI lowered their price target on shares of Costco Wholesale from $1,075.00 to $1,060.00 and set an "outperform" rating on the stock in a report on Tuesday, June 17th. Wall Street Zen upgraded shares of Costco Wholesale from a "hold" rating to a "buy" rating in a report on Friday, June 6th. Finally, Telsey Advisory Group reaffirmed an "outperform" rating and issued a $1,100.00 price objective on shares of Costco Wholesale in a research report on Wednesday, August 27th. Seventeen equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $1,050.00.

About Costco Wholesale

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.

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