Independent Financial Group LLC Purchases New Shares in Costco Wholesale Corporation $COST

Key Points

• Independent Financial Group LLC opened a new position in Costco during the first quarter, buying 17,678 shares valued at about $17.6 million. The stake makes Costco its 28th-largest holding and about 0.5% of its portfolio.
• Costco’s latest earnings were slightly below expectations, with $4.93 EPS versus the $4.94 estimate, though revenue came in a bit ahead at $70.53 billion. Analysts still expect the company to earn 20.38 EPS for the current fiscal year.
• The company also announced a quarterly dividend of $1.47 per share, payable on August 7, with an ex-dividend date of July 24. That works out to an annualized dividend of $5.88 and a yield of about 0.6%.

Independent Financial Group LLC bought a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 17,678 shares of the retailer's stock, valued at approximately $17,616,000. Costco Wholesale comprises approximately 0.5% of Independent Financial Group LLC's portfolio, making the stock its 28th biggest holding.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of Costco Wholesale in the 4th quarter worth about $27,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale in the 4th quarter worth approximately $28,000. Lifetime Wealth Management P.C. bought a new stake in Costco Wholesale in the fourth quarter valued at $28,000. Manning & Napier Advisors LLC lifted its position in Costco Wholesale by 750.0% in the 1st quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer's stock valued at $34,000 after purchasing an additional 30 shares during the last quarter. Finally, Entrust Financial LLC acquired a new position in shares of Costco Wholesale during the fourth quarter worth approximately $31,000. Institutional investors own 68.48% of the company's stock.

Insider Buying and Selling at Costco Wholesale

In related news, Director Kenneth D. 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 value of $847,343.25. Following the transaction, the director directly owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.10% of the company's stock.

Costco Wholesale Trading Up 3.2%

Shares of NASDAQ:COST opened at $945.57 on Friday. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The stock has a market capitalization of $419.34 billion, a PE ratio of 47.56, a P/E/G ratio of 4.44 and a beta of 0.88. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The firm has a fifty day moving average price of $977.09 and a 200 day moving average price of $977.80.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The company had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. During the same quarter last year, the business earned $4.28 earnings per share. Analysts expect that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Friday, July 24th will be issued a dividend of $1.47 per share. The ex-dividend date of this dividend is Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio is currently 29.58%.

Key Costco Wholesale News

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

• Positive Sentiment: Costco is set to go ex-dividend on Friday, July 24, with the payout scheduled for August 7, which may be supporting near-term interest from income-focused investors. 2 Well-Known Stocks Are Ready to Pay You Dividends – But You Must Act Before July 24
• Positive Sentiment: New articles highlighted Costco’s strong long-term performance and continued consumer demand, reinforcing the view that the retailer remains a high-quality defensive name. Verizon to Lay Off 3,000 Workers as Part of Broader Restructuring
• Neutral Sentiment: One report said Costco’s June sales growth slowed, but also noted resilient demand, digital gains, and rising estimates; the takeaway was mixed rather than clearly negative. Is Costco Stock Still a Buy After Its June Sales Update?
• Neutral Sentiment: Another article argued Costco still looks expensive after its big multi-year run, which keeps valuation concerns in focus for investors. Costco (COST) Stock Still Looks Overvalued As Its 133% Run Draws Scrutiny
• Neutral Sentiment: Several other stories were broadly informational, including dividend math, comparisons with Walmart, warehouse expansion chatter, and consumer-product placement at Costco, but they do not appear to be major stock drivers on their own. Here's How Many Shares of Costco Stock You'd Need for $1,000 in Yearly Dividends

Wall Street Analyst Weigh In

Several research firms recently weighed in on COST. Guggenheim reaffirmed a "neutral" rating on shares of Costco Wholesale in a report on Monday, June 1st. UBS Group raised their price objective on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a research note on Wednesday, May 20th. Wells Fargo & Company raised their target price on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Thursday, April 9th. Truist Financial lifted their price target on Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a report on Friday, May 29th. Finally, The Goldman Sachs Group boosted their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Twenty-two equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,059.07.

Costco Wholesale 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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