Inspire Trust Co. N.A. Buys 1,100 Shares of Costco Wholesale Corporation $COST

Key Points

• Inspire Trust Co. N.A. increased its Costco stake by 23.9% in the fourth quarter, buying 1,100 more shares and bringing its total holdings to 5,700 shares worth about $4.9 million.
• Institutional ownership remains high, with hedge funds and other institutional investors holding 68.48% of Costco’s stock, and several other funds also recently adding to their positions.
• Analysts remain broadly positive on Costco, with 21 Buy ratings, 11 Hold ratings, and a consensus “Moderate Buy” rating; the average price target is $1,051.18.

Inspire Trust Co. N.A. lifted its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 23.9% in the fourth quarter, according to its most recent filing with the SEC. The fund owned 5,700 shares of the retailer's stock after acquiring an additional 1,100 shares during the period. Inspire Trust Co. N.A.'s holdings in Costco Wholesale were worth $4,915,000 as of its most recent SEC filing.

A number of other large investors also recently added to or reduced their stakes in COST. FORA Capital LLC purchased a new stake in Costco Wholesale in the third quarter worth about $2,781,000. World Investment Advisors grew its holdings in Costco Wholesale by 8.4% in the fourth quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock worth $15,835,000 after purchasing an additional 1,560 shares during the period. Teacher Retirement System of Texas grew its holdings in Costco Wholesale by 24.5% in the fourth quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer's stock worth $121,098,000 after purchasing an additional 27,625 shares during the period. Curtis Advisory Group LLC grew its holdings in Costco Wholesale by 56.7% in the fourth quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer's stock worth $3,911,000 after purchasing an additional 1,641 shares during the period. Finally, Mariner LLC grew its holdings in Costco Wholesale by 1.5% in the third quarter. Mariner LLC now owns 399,894 shares of the retailer's stock worth $370,140,000 after purchasing an additional 5,937 shares during the period. Hedge funds and other institutional investors own 68.48% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on COST shares. TD Cowen restated a "buy" rating on shares of Costco Wholesale in a report on Friday, March 6th. Truist Financial upped their price objective on shares of Costco Wholesale from $926.00 to $977.00 and gave the stock a "hold" rating in a report on Friday, March 6th. Evercore set a $1,100.00 price objective on shares of Costco Wholesale in a report on Monday, March 2nd. BMO Capital Markets upped their price objective on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an "outperform" rating in a report on Friday, March 6th. Finally, UBS Group upped their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a report on Wednesday, May 20th. Twenty-one equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,051.18.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco reported stronger-than-expected sales, including U.S. same-store sales growth of 9.8% and adjusted comparable sales up 6.6%, showing that demand remains resilient even in a pressured consumer environment.
• Positive Sentiment: Revenue came in above Wall Street expectations, with $70.53 billion in quarterly sales versus estimates of $69.68 billion, reinforcing the company’s ability to keep growing at scale.
• Positive Sentiment: Membership and gas-related traffic appear to be supporting results, with higher fuel prices bringing more shoppers into warehouses and boosting basket sizes and same-store sales.
• Neutral Sentiment: EPS of $4.93 was slightly below the consensus estimate of $4.98, making the report mixed rather than uniformly strong, even though profits still improved year over year.
• Neutral Sentiment: Several pre-earnings articles framed Costco as a high-quality defensive retailer with a premium valuation, suggesting investors may continue to focus on whether the stock can justify its elevated multiple.
• Negative Sentiment: The small earnings miss could temper enthusiasm in the near term, especially given the stock’s recent run-up and the market’s high expectations heading into the print.

Insider Activity at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total value of $732,204.60. Following the completion of the sale, the executive vice president 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.10% of the company's stock.

Costco Wholesale Trading Down 0.8%

NASDAQ:COST opened at $995.20 on Friday. The company's 50 day moving average price is $1,008.28 and its 200-day moving average price is $962.53. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The stock has a market cap of $441.52 billion, a price-to-earnings ratio of 51.75, a PEG ratio of 4.94 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing analysts' consensus estimates of $4.98 by ($0.05). The firm had revenue of $70.53 billion for the quarter, compared to analysts' expectations of $69.68 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. During the same quarter in the previous year, the company earned $4.28 EPS. On average, equities research analysts forecast that Costco Wholesale Corporation will post 20.33 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were issued a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Friday, May 1st. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio is 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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