Independent Solutions Wealth Management LLC Has $9.80 Million Stock Position in Costco Wholesale Corporation $COST

Key Points

• Independent Solutions Wealth Management cut its Costco position by 46.2% in the fourth quarter, but still held 11,363 shares worth about $9.8 million at quarter-end.
• Costco continues to expand its footprint, highlighted by the opening of a new warehouse in New Braunfels, Texas, and a reported purchase of a 55-acre Florida property for future growth.
• The company remains fundamentally strong, with quarterly earnings and revenue beating estimates, but investors and analysts are also focused on its premium valuation despite widespread Buy ratings on Wall Street.

Independent Solutions Wealth Management LLC reduced its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 46.2% in the 4th quarter, according to its most recent filing with the SEC. The fund owned 11,363 shares of the retailer's stock after selling 9,742 shares during the period. Costco Wholesale comprises 1.8% of Independent Solutions Wealth Management LLC's holdings, making the stock its 12th largest position. Independent Solutions Wealth Management LLC's holdings in Costco Wholesale were worth $9,799,000 at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. Hurley Capital LLC lifted its stake in Costco Wholesale by 120.0% in the 3rd 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 last quarter. Joseph Group Capital Management acquired a new stake in Costco Wholesale in the 4th quarter valued at about $33,000. Abich Financial Wealth Management LLC acquired a new stake in Costco Wholesale in the 3rd quarter valued at about $34,000. Collier Financial acquired a new stake in Costco Wholesale in the 3rd quarter valued at about $35,000. Finally, AXS Investments LLC acquired a new stake in Costco Wholesale in the 3rd quarter valued at about $36,000. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco opened a long-awaited warehouse in New Braunfels, Texas, adding to its store base and reinforcing investor confidence in continued unit growth and market expansion. Long-awaited Costco Wholesale now open in New Braunfels
• Positive Sentiment: Another report confirmed the New Braunfels store is now open for business, underscoring Costco’s ongoing rollout of new locations that can support membership and revenue growth. Costco Wholesale now open for business in New Braunfels
• Positive Sentiment: Analysts and market commentary continue to favor Costco’s membership-driven model, saying it benefits from resilient grocery demand and supports steady growth even in a volatile retail backdrop. WMT or COST: Which Retail Giant Looks More Attractive Now?
• Positive Sentiment: Costco’s purchase of a 55-acre property in Florida suggests the company is still investing in significant long-term store growth, which investors typically view as a sign of confidence in future demand. Costco Just Signed Off on a Massive Retail Real Estate Deal in Florida. Here's What Investors Need to Know About Costco's Store Growth Goals.
• Neutral Sentiment: Articles debating whether Costco is still a good buy after its multi-year rally mostly reinforce that the stock remains a quality business but is expensive, making the reaction more about valuation than any new fundamental change. Is It Too Late To Consider Costco Wholesale (COST) After Its Strong Multi Year Rally
• Neutral Sentiment: Coverage on Costco’s food court chicken tender launch is generating consumer buzz, but the main takeaway is mixed, with some concerns about whether it replaces a favorite item rather than clearly boosting the investment outlook. Costco food court chicken tender launch sparks concerns over item replacement
• Negative Sentiment: Some recent commentary flags Costco’s premium valuation and argues the stock may be difficult to justify at current levels, which can temper enthusiasm despite strong fundamentals. Costco: Strong Fundamentals Meet Growth Premium - A Hold Entering FQ3'26
• Negative Sentiment: Another Seeking Alpha piece argues there is a reason to sell Costco beyond valuation, adding to the cautious tone around the stock’s elevated price level. Costco: Another Reason To Sell (Besides The Valuation)

Wall Street Analyst Weigh In

Several brokerages recently issued reports on COST. 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. Rothschild & Co Redburn raised their target price on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the company a "neutral" rating in a research note on Tuesday, February 17th. Truist Financial raised their target price on shares of Costco Wholesale from $926.00 to $977.00 and gave the company a "hold" rating in a research note on Friday, March 6th. Bank of America initiated coverage on shares of Costco Wholesale in a report on Friday, February 27th. They issued a "buy" rating and a $1,185.00 price target on the stock. Finally, UBS Group set a $1,175.00 price target on shares of Costco Wholesale in a report on Friday, March 6th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $1,047.27.

Costco Wholesale Stock Up 0.7%

Costco Wholesale stock opened at $1,048.95 on Friday. The stock has a market cap of $465.37 billion, a P/E ratio of 54.55, a P/E/G ratio of 5.16 and a beta of 0.92. 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 Corporation has a twelve month low of $844.06 and a twelve month high of $1,067.08. The company's 50-day moving average price is $1,000.90 and its two-hundred day moving average price is $955.06.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its earnings results on Wednesday, March 11th. The retailer reported $4.58 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 company had revenue of $69.60 billion for the quarter, compared to analysts' expectations of $68.96 billion. During the same period last year, the firm earned $4.02 earnings per share. The business's revenue for the quarter was up 9.2% on a year-over-year basis. As a group, analysts expect that Costco Wholesale Corporation will post 20.31 EPS for the current year.

Costco Wholesale Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were issued a dividend of $1.47 per share. 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%. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale's payout ratio is 30.58%.

Insider Activity at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of the firm's stock in a transaction that occurred 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 transaction, the executive vice president directly owned 6,121 shares of the company's stock, valued at approximately $6,139,485.42. This trade represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.10% of the company's stock.

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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