Gamco Investors INC. ET AL Sells 1,926 Shares of Costco Wholesale Corporation $COST

Key Points

• Gamco Investors cut its Costco stake by 22.8% in the fourth quarter, selling 1,926 shares and leaving it with 6,520 shares valued at about $5.62 million.
• Several analysts recently raised price targets on Costco, and the stock now has a consensus rating of Moderate Buy with an average target of $1,049.27.
• Costco reported strong quarterly results, beating EPS and revenue estimates, and also increased its quarterly dividend to $1.47 per share, up from $1.30.

Gamco Investors INC. ET AL lessened its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 22.8% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 6,520 shares of the retailer's stock after selling 1,926 shares during the period. Gamco Investors INC. ET AL's holdings in Costco Wholesale were worth $5,622,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in COST. Hurley Capital LLC lifted its position in Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after purchasing an additional 18 shares during the period. Joseph Group Capital Management bought a new stake in Costco Wholesale during the fourth quarter worth about $33,000. Abich Financial Wealth Management LLC bought a new stake in Costco Wholesale during the third quarter worth about $34,000. Collier Financial bought a new position in Costco Wholesale in the third quarter valued at approximately $35,000. Finally, AXS Investments LLC bought a new position in Costco Wholesale in the third quarter valued at approximately $36,000. Institutional investors own 68.48% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently issued reports on COST. BMO Capital Markets lifted their price objective on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the company an "outperform" rating in a research note on Friday, March 6th. Daiwa Securities Group lifted their price objective on shares of Costco Wholesale from $917.00 to $975.00 and gave the company a "neutral" rating in a research note on Tuesday, March 10th. Sanford C. Bernstein reissued an "outperform" rating and issued a $1,192.00 price objective on shares of Costco Wholesale in a research note on Tuesday, May 12th. UBS Group set a $1,175.00 price objective on Costco Wholesale in a research report on Friday, March 6th. Finally, Mizuho upped their price objective on Costco Wholesale from $1,065.00 to $1,100.00 and gave the stock an "outperform" rating in a research report on Thursday, April 16th. 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. According to data from MarketBeat, Costco Wholesale currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,049.27.

Costco Wholesale Stock Up 1.7%

Shares of COST opened at $1,094.32 on Wednesday. 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 capitalization of $485.50 billion, a price-to-earnings ratio of 56.91, a PEG ratio of 5.30 and a beta of 0.92. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The stock has a fifty day moving average of $1,004.71 and a 200-day moving average of $957.59.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The company had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. During the same period in the prior year, the company earned $4.02 EPS. Costco Wholesale's revenue was up 9.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that Costco Wholesale Corporation will post 20.31 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were issued a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.5%. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date was Friday, May 1st. Costco Wholesale's dividend payout ratio (DPR) is presently 30.58%.

Key Costco Wholesale News

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

• Positive Sentiment: Costco raised its quarterly dividend by 13% to $1.47 per share, marking 22 straight years of dividend increases and signaling confidence in cash generation. This helped push shares to new highs. Where Will Costco Stock Be In 2028?
• Positive Sentiment: Analysts turned more constructive ahead of the company’s May 28 earnings report, with Oppenheimer lifting its price target to $1,160 after strong April sales and the dividend hike. Costco (COST) Stock Gains as Analysts Raise Price Targets Before Quarterly Report
• Positive Sentiment: Costco’s April sales reinforced its defensive appeal, with 11.6% comparable sales growth and 18.8% digital sales growth as value-focused shoppers kept buying in bulk. Costco's April Sales Reinforce Its Case as the Ultimate Defensive Stock
• Positive Sentiment: New food-court items, including chicken strips, are generating customer buzz and social media attention that may support traffic and membership loyalty. Forget chicken fingers, Costco quietly adds new food court item
• Neutral Sentiment: Several articles discuss whether Costco should split its stock now that shares are above $1,000, but management has not announced any split. Costco's Stock Keeps Breaking the $1,000 Threshold -- Don't Expect a Stock Split

Insider Buying and Selling at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of the business's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the sale, the executive vice president directly owned 6,121 shares in the company, valued at approximately $6,139,485.42. The trade was a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company 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.

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