Highland Capital Management LLC Has $34.31 Million Stock Position in Costco Wholesale Corporation $COST

Key Points

• Highland Capital increased its stake in Costco by 18.6% in Q4 and now owns 39,791 shares worth about $34.31 million, representing roughly 1.7% of its portfolio and its 12th-largest position.
• Analyst sentiment is broadly positive with a consensus rating of Moderate Buy, an average target of $1,045.97, and a breakdown of 22 Buys, 11 Holds and 1 Sell; several firms (JPMorgan, Wells Fargo, Oppenheimer) recently raised price targets.
• Costco raised its quarterly dividend to $1.47 (from $1.30) — $5.88 annualized, 0.6% yield, ex-dividend May 1 — and reported a slight quarterly EPS beat ($4.58 vs. $4.55) with revenue up 9.2% year-over-year to $69.6 billion.

Highland Capital Management LLC grew its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 18.6% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 39,791 shares of the retailer's stock after purchasing an additional 6,228 shares during the quarter. Costco Wholesale comprises about 1.7% of Highland Capital Management LLC's investment portfolio, making the stock its 12th biggest position. Highland Capital Management LLC's holdings in Costco Wholesale were worth $34,313,000 at the end of the most recent quarter.

A number of other large investors have also recently bought and sold shares of COST. Hurley Capital LLC boosted its stake in shares of Costco Wholesale by 120.0% during the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after acquiring an additional 18 shares in the last quarter. Joseph Group Capital Management bought a new position in shares of Costco Wholesale in the 4th quarter valued at approximately $33,000. Abich Financial Wealth Management LLC acquired a new stake in Costco Wholesale in the 3rd quarter worth approximately $34,000. Collier Financial acquired a new stake in Costco Wholesale in the 3rd quarter worth approximately $35,000. Finally, AXS Investments LLC bought a new stake in Costco Wholesale during the third quarter worth approximately $36,000. 68.48% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the company. Wells Fargo & Company increased their price target on Costco Wholesale from $950.00 to $1,000.00 and gave the company an "equal weight" rating in a report on Thursday, April 9th. JPMorgan Chase & Co. upped their price objective on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an "overweight" rating in a report on Friday, April 17th. Sanford C. Bernstein reiterated an "outperform" rating and issued a $1,155.00 target price on shares of Costco Wholesale in a research note on Monday, February 9th. Roth Mkm reiterated a "sell" rating on shares of Costco Wholesale in a report on Wednesday, February 4th. Finally, Oppenheimer boosted their target price on shares of Costco Wholesale from $1,050.00 to $1,100.00 and gave the stock an "outperform" rating in a research report on Thursday, February 5th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $1,045.97.

Costco Wholesale Stock Up 0.1%

Shares of COST stock opened at $1,012.79 on Tuesday. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,067.08. The firm has a market cap of $449.32 billion, a PE ratio of 52.67, a price-to-earnings-growth ratio of 4.98 and a beta of 0.92. The stock has a 50 day moving average of $996.93 and a 200-day moving average of $950.04. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18.

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 (EPS) 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 business had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. During the same quarter last year, the company posted $4.02 earnings per share. Costco Wholesale's quarterly revenue was up 9.2% on a year-over-year basis. On average, equities analysts predict that Costco Wholesale Corporation will post 20.32 EPS for the current year.

Costco Wholesale Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be paid a $1.47 dividend. The ex-dividend date is Friday, May 1st. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio is 30.58%.

Insiders Place Their Bets

In related 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 transaction, the executive vice president directly owned 6,121 shares in the company, valued at $6,139,485.42. The trade was a 10.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.10% of the stock is currently owned by company insiders.

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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