Income Insurance Ltd Acquires New Position in Costco Wholesale Corporation $COST

Key Points

• Income Insurance Ltd initiated a new stake in Costco Wholesale during the fourth quarter, buying 1,335 shares valued at about $1.15 million. The position represents 0.7% of the firm’s portfolio and is now its 23rd-largest holding.
• Wall Street sentiment remains broadly positive on Costco, with multiple analysts raising price targets and the stock carrying a Moderate Buy consensus rating. Twenty-two analysts rate it Buy, eleven Hold, and one Sell, with a consensus target of $1,046.03.
• Costco reported strong recent performance, including April net sales up 13% and quarterly earnings that topped expectations. The company also increased its quarterly dividend to $1.47 per share from $1.30.

Income Insurance Ltd acquired a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 1,335 shares of the retailer's stock, valued at approximately $1,151,000. Costco Wholesale accounts for 0.7% of Income Insurance Ltd's investment portfolio, making the stock its 23rd largest holding.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Hurley Capital LLC lifted its stake in shares of Costco Wholesale by 120.0% in the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock valued at $31,000 after purchasing an additional 18 shares during the period. Abich Financial Wealth Management LLC acquired a new stake in shares of Costco Wholesale in the third quarter valued at about $34,000. Collier Financial acquired a new stake in shares of Costco Wholesale in the third quarter valued at about $35,000. Joseph Group Capital Management acquired a new stake in shares of Costco Wholesale in the fourth quarter valued at about $33,000. Finally, AXS Investments LLC acquired a new stake in shares of Costco Wholesale in the third quarter valued at about $36,000. Institutional investors and hedge funds own 68.48% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently commented on COST shares. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a "buy" rating in a research note on Thursday. Weiss Ratings upgraded shares of Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, March 17th. Daiwa Securities Group raised 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. Mizuho raised their price objective on shares of Costco Wholesale from $1,065.00 to $1,100.00 and gave the company an "outperform" rating in a research note on Thursday, April 16th. Finally, Evercore set a $1,100.00 target price on shares of Costco Wholesale in a research report on Monday, March 2nd. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $1,046.03.

Insider Activity at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of Costco Wholesale 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 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 filing with the SEC, which is available through the SEC website. 0.10% of the stock is currently owned by company insiders.

Costco Wholesale Stock Performance

Shares of COST opened at $1,008.79 on Friday. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. The stock has a market cap of $447.55 billion, a P/E ratio of 52.46, a PEG ratio of 4.97 and a beta of 0.92. The company has a 50-day moving average of $998.03 and a two-hundred day moving average of $951.50. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,067.08.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.55 by $0.03. The company had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The firm's quarterly revenue was up 9.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $4.02 earnings per share. As a group, research analysts predict that Costco Wholesale Corporation will post 20.32 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Friday, May 1st will be issued a dividend of $1.47 per share. 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. The ex-dividend date is Friday, May 1st. Costco Wholesale's payout ratio is presently 30.58%.

Key Costco Wholesale News

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

• Positive Sentiment: April net sales rose 13% and comparable sales remained strong, signaling resilient demand and solid momentum for Costco’s core business. Costco Wholesale Corporation Reports April Sales Results
• Positive Sentiment: Bank of America reiterated a Buy rating after the sales update, pointing to Costco’s steady comparable sales trend despite macro uncertainty. Costco April sales top expectations despite Easter shift, macroeconomic uncertainty
• Positive Sentiment: Deutsche Bank raised its price target and kept a Buy rating, adding to bullish sentiment around the stock. Deutsche Bank adjusts Costco Wholesale PT
• Positive Sentiment: Market chatter around a possible special dividend later this year may be attracting income-focused investors to COST. Is Costco Preparing Another Special Dividend This Year?
• Neutral Sentiment: Costco is also in the news for store expansion plans in California and Florida, which is constructive long term but not an immediate stock catalyst. Costco plots major California expansion as it announces new store openings
• Neutral Sentiment: Several lifestyle and product roundups highlight Costco’s strong brand and value perception, but these are unlikely to move the stock much on their own.
• Negative Sentiment: A lawsuit over Costco’s tariff-refund pricing strategy could create legal and margin uncertainty, though the longer-term financial impact is still unclear. Costco’s Going to Court Because It Wants to Give You Tariff Refunds

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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