Hollencrest Capital Management Sells 66,257 Shares of Costco Wholesale Corporation $COST

Key Points

• Hollencrest Capital Management cut its Costco position by 93.9% in the second quarter, selling 66,257 shares and retaining 4,304 shares valued at approximately $4.03 million. Institutional investors collectively own 68.48% of Costco.
• Costco reported strong fourth-quarter sales of $93.9 billion, up 11.3% year over year, while digitally enabled comparable sales rose 19.5%. Analysts maintain a “Moderate Buy” consensus with an average price target of $1,056.03.
• Despite solid sales and analyst support, Costco trades at a premium valuation with a 45.78 price-to-earnings ratio; shares opened at $910.18, below their 50-day and 200-day moving averages, amid concerns about competition and slowing growth.

Hollencrest Capital Management trimmed its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 93.9% in the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 4,304 shares of the retailer's stock after selling 66,257 shares during the period. Hollencrest Capital Management's holdings in Costco Wholesale were worth $4,026,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the business. Brighton Jones LLC raised its stake in Costco Wholesale by 12.3% during the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock valued at $18,165,000 after buying an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC grew its stake in shares of Costco Wholesale by 13.1% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock worth $1,029,000 after acquiring an additional 130 shares during the last quarter. Sivia Capital Partners LLC grew its stake in shares of Costco Wholesale by 4.5% in the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock worth $3,814,000 after acquiring an additional 165 shares during the last quarter. Pinnacle Wealth Planning Services Inc. increased its holdings in shares of Costco Wholesale by 1.1% during the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock valued at $2,089,000 after acquiring an additional 23 shares in the last quarter. Finally, Schnieders Capital Management LLC. raised its position in shares of Costco Wholesale by 2.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock worth $8,416,000 after purchasing an additional 182 shares during the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Strong fourth-quarter sales: Costco reported fourth-quarter net sales of $93.9 billion, up 11.3% year over year. Digitally enabled comparable sales increased 19.5%, suggesting e-commerce and omnichannel initiatives remain important growth drivers. Costco's Q4 Sales Rise 11.3% as Digital Momentum Remains Strong
• Positive Sentiment: Analyst upgrade: Freedom Broker raised Costco from “hold” to “buy” and established a $1,030 price target, implying meaningful potential upside from recent trading levels. However, the upgrade has not yet overcome broader selling pressure. Costco Stock Falls Despite Freedom Broker Upgrade to Buy
• Neutral Sentiment: Returns and liquidation operations: Reports that Costco resells some returned merchandise through liquidation and B-stock auctions provide additional context on its inventory practices. The activity appears operational rather than a major new earnings catalyst, although it may help recover value from returned goods. How Costco Resells Items Returned Under Its Satisfaction Guarantee Policy
• Negative Sentiment: Premium valuation and competitive concerns: Costco’s recent underperformance has renewed debate over whether its high valuation is justified. Jim Cramer argued that the retailer may have lost some of its edge, while other commentary points to competition from discount stores. With a price-to-earnings ratio above 45, investors may be particularly sensitive to any slowdown in growth or membership appeal. Cramer Warns Costco May Have Lost Its Edge
• Negative Sentiment: Supplier bankruptcy headline: The loss of a Costco distribution deal contributed to a beverage brand’s Chapter 11 filing. This is not a direct financial threat to Costco, but it highlights vendor and product-selection risks within its merchandise ecosystem. Loss of Costco Deal Helps Push Beverage Brand Into Chapter 11

Insider Buying and Selling

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the firm's stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders own 0.10% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently issued reports on COST shares. Oppenheimer upped their price objective on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a research report on Tuesday, May 19th. Mizuho set a $1,100.00 price objective on Costco Wholesale in a research report on Monday, June 1st. BTIG Research reissued a "buy" rating and set a $1,125.00 price objective on shares of Costco Wholesale in a report on Thursday, September 3rd. JPMorgan Chase & Co. lowered their price objective on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating on the stock in a research report on Thursday, July 9th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $1,091.00 target price on shares of Costco Wholesale in a report on Friday. Twenty-two research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $1,056.03.

Costco Wholesale Stock Down 0.6%

COST opened at $910.18 on Wednesday. The company has a market capitalization of $403.65 billion, a PE ratio of 45.78, a price-to-earnings-growth ratio of 3.80 and a beta of 0.86. The firm has a 50-day simple moving average of $942.45 and a two-hundred day simple moving average of $976.18. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50.

Costco Wholesale Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were paid a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's dividend payout ratio is presently 29.58%.

Costco Wholesale Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.

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