Hillsdale Investment Management Inc. Reduces Holdings in Costco Wholesale Corporation $COST

Key Points

• Hillsdale Investment Management reduced its Costco stake by 38% in the fourth quarter, selling 2,160 shares and leaving it with 3,518 shares valued at about $3.0 million.
• Institutional ownership remains high, with 68.48% of Costco shares held by hedge funds and other institutions, and several other funds either added to or initiated positions in the stock.
• Costco reported strong third-quarter results with revenue of $70.53 billion and same-store sales up 9.8%, but EPS of $4.93 only matched expectations and margin pressure/valuation concerns have kept some investors cautious.

Hillsdale Investment Management Inc. trimmed its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 38.0% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,518 shares of the retailer's stock after selling 2,160 shares during the period. Hillsdale Investment Management Inc.'s holdings in Costco Wholesale were worth $3,034,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of the business. Triglav Investments D.O.O. purchased a new position in shares of Costco Wholesale during the 4th quarter worth approximately $1,638,000. Zhang Financial LLC grew its stake in Costco Wholesale by 8.2% in the 4th quarter. Zhang Financial LLC now owns 1,654 shares of the retailer's stock worth $1,427,000 after acquiring an additional 126 shares during the period. Fideuram Asset Management Ireland dac purchased a new stake in Costco Wholesale in the 4th quarter worth approximately $5,068,000. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. purchased a new stake in Costco Wholesale in the 4th quarter worth approximately $204,000. Finally, Linscomb Wealth Inc. grew its stake in Costco Wholesale by 3.9% in the 4th quarter. Linscomb Wealth Inc. now owns 6,682 shares of the retailer's stock worth $5,762,000 after acquiring an additional 249 shares during the period. 68.48% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, EVP Claudine Adamo sold 730 shares of the business's stock in a transaction on 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 directly owned 6,121 shares of the company's stock, valued at $6,139,485.42. The trade was a 10.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.10% of the stock is owned by corporate insiders.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco posted strong third-quarter results, with revenue of $70.53 billion topping estimates and same-store sales rising 9.8%, showing that members are still spending on essentials and value-focused purchases.
• Positive Sentiment: Gasoline sales were a standout, with Costco’s gas stations setting all-time or record volume levels as drivers sought lower-priced fuel amid elevated energy costs. Article Title
• Positive Sentiment: Digital growth and membership strength continued to support results, helping offset margin pressure and reinforcing Costco’s value-driven model.
• Positive Sentiment: Several Wall Street firms raised price targets or reiterated bullish ratings, including Bank of America, Goldman Sachs, Bernstein, BTIG, and Morgan Stanley, signaling confidence in Costco’s long-term fundamentals.
• Neutral Sentiment: DA Davidson reaffirmed a neutral rating with a $1,000 target, suggesting modest upside but not a strong catalyst for a re-rating.
• Neutral Sentiment: Costco said it will return U.S. tariff refunds to members “in some form,” which may help customer loyalty but does not yet provide a clear financial boost.
• Negative Sentiment: EPS of $4.93 missed consensus by a small margin, and investors appear focused on the earnings shortfall more than the sales beat.
• Negative Sentiment: Margin pressure from higher costs and a premium valuation have prompted some traders to sell after the report, limiting enthusiasm despite the strong top-line performance.

Wall Street Analyst Weigh In

Several analysts have commented on COST shares. Evercore set a $1,100.00 target price on shares of Costco Wholesale in a research note on Monday, March 2nd. BMO Capital Markets lifted their target price 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. Sanford C. Bernstein lifted their target price on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research note on Friday. Truist Financial lifted their target price on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research note on Friday. Finally, DA Davidson reaffirmed a "neutral" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a research note on Friday. Twenty-one 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 company. Based on data from MarketBeat, Costco Wholesale has an average rating of "Moderate Buy" and a consensus target price of $1,056.32.

Costco Wholesale Price Performance

Shares of NASDAQ COST opened at $956.32 on Monday. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The firm has a fifty day moving average of $1,007.80 and a 200-day moving average of $962.81. The stock has a market capitalization of $424.27 billion, a PE ratio of 48.10, a P/E/G ratio of 4.70 and a beta of 0.88. 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 Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $4.93. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.72%. The company had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $70.53 billion. During the same period in the previous year, the company earned $4.28 EPS. On average, analysts anticipate that Costco Wholesale Corporation will post 20.36 EPS for the current year.

Costco Wholesale Increases Dividend

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

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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