Guardian Capital LLC Buys New Stake in Costco Wholesale Corporation $COST

Key Points

• Guardian Capital LLC opened a new position in Costco Wholesale during the fourth quarter, buying 2,944 shares worth about $2.54 million. The stake makes Costco about 2.3% of the firm’s portfolio.
• Costco’s latest quarterly results beat expectations, with EPS of $4.58 versus the $4.55 estimate and revenue of $69.6 billion, up 9.2% year over year. Analysts currently expect the company to earn 20.31 EPS for the fiscal year.
• The company also raised its quarterly dividend to $1.47 per share from $1.30, bringing the annualized payout to $5.88 and the dividend yield to 0.6%. Meanwhile, Wall Street remains broadly positive, with a consensus rating of Moderate Buy and an average price target of $1,047.27.

Guardian Capital LLC bought a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 2,944 shares of the retailer's stock, valued at approximately $2,539,000. Costco Wholesale comprises 2.3% of Guardian Capital LLC's portfolio, making the stock its 13th biggest holding.

A number of other hedge funds have also recently bought and sold shares of the company. Graney & King LLC increased its stake in Costco Wholesale by 6.8% during the 2nd quarter. Graney & King LLC now owns 173 shares of the retailer's stock worth $171,000 after buying an additional 11 shares during the period. Seneschal Advisors LLC increased its stake in Costco Wholesale by 0.4% during the 2nd quarter. Seneschal Advisors LLC now owns 3,142 shares of the retailer's stock worth $3,110,000 after buying an additional 11 shares during the period. Cascade Investment Group Inc. increased its stake in Costco Wholesale by 1.0% during the 3rd quarter. Cascade Investment Group Inc. now owns 1,151 shares of the retailer's stock worth $1,065,000 after buying an additional 11 shares during the period. Brown Wealth Management LLC increased its stake in Costco Wholesale by 3.7% during the 3rd quarter. Brown Wealth Management LLC now owns 305 shares of the retailer's stock worth $282,000 after buying an additional 11 shares during the period. Finally, Caliber Wealth Management LLC KS increased its stake in Costco Wholesale by 1.7% during the 3rd quarter. Caliber Wealth Management LLC KS now owns 655 shares of the retailer's stock worth $606,000 after buying an additional 11 shares during the period. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Price Performance

Shares of COST stock opened at $1,048.95 on Friday. The firm has a market cap of $465.37 billion, a P/E ratio of 54.55, a P/E/G ratio of 5.16 and a beta of 0.92. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,067.08. The firm has a fifty day moving average of $1,000.90 and a two-hundred day moving average of $955.06.

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

Costco Wholesale Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were given a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's payout ratio is currently 30.58%.

Insider Buying and Selling at Costco Wholesale

In related news, EVP Claudine Adamo sold 730 shares of the business's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the sale, the executive vice president owned 6,121 shares of the company's stock, valued at $6,139,485.42. This represents a 10.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.10% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco opened a long-awaited warehouse in New Braunfels, Texas, adding to its store base and reinforcing investor confidence in continued unit growth and market expansion. Long-awaited Costco Wholesale now open in New Braunfels
• Positive Sentiment: Another report confirmed the New Braunfels store is now open for business, underscoring Costco’s ongoing rollout of new locations that can support membership and revenue growth. Costco Wholesale now open for business in New Braunfels
• Positive Sentiment: Analysts and market commentary continue to favor Costco’s membership-driven model, saying it benefits from resilient grocery demand and supports steady growth even in a volatile retail backdrop. WMT or COST: Which Retail Giant Looks More Attractive Now?
• Positive Sentiment: Costco’s purchase of a 55-acre property in Florida suggests the company is still investing in significant long-term store growth, which investors typically view as a sign of confidence in future demand. Costco Just Signed Off on a Massive Retail Real Estate Deal in Florida. Here's What Investors Need to Know About Costco's Store Growth Goals.
• Neutral Sentiment: Articles debating whether Costco is still a good buy after its multi-year rally mostly reinforce that the stock remains a quality business but is expensive, making the reaction more about valuation than any new fundamental change. Is It Too Late To Consider Costco Wholesale (COST) After Its Strong Multi Year Rally
• Neutral Sentiment: Coverage on Costco’s food court chicken tender launch is generating consumer buzz, but the main takeaway is mixed, with some concerns about whether it replaces a favorite item rather than clearly boosting the investment outlook. Costco food court chicken tender launch sparks concerns over item replacement
• Negative Sentiment: Some recent commentary flags Costco’s premium valuation and argues the stock may be difficult to justify at current levels, which can temper enthusiasm despite strong fundamentals. Costco: Strong Fundamentals Meet Growth Premium - A Hold Entering FQ3'26
• Negative Sentiment: Another Seeking Alpha piece argues there is a reason to sell Costco beyond valuation, adding to the cautious tone around the stock’s elevated price level. Costco: Another Reason To Sell (Besides The Valuation)

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on COST. BMO Capital Markets lifted their price target on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an "outperform" rating in a research note on Friday, March 6th. Truist Financial lifted their price target on shares of Costco Wholesale from $926.00 to $977.00 and gave the stock a "hold" rating in a research note on Friday, March 6th. Sanford C. Bernstein reissued an "outperform" rating and set a $1,192.00 price objective on shares of Costco Wholesale in a report on Tuesday. Raymond James Financial raised their price objective on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Friday, March 6th. Finally, DA Davidson reissued a "neutral" rating and set a $1,000.00 price objective on shares of Costco Wholesale in a report on Friday, April 10th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $1,047.27.

Costco Wholesale Company 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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