Intech Investment Management LLC Sells 4,792 Shares of Costco Wholesale Corporation $COST

Key Points

• Intech Investment Management cut its Costco position by 11.6% in the fourth quarter, selling 4,792 shares and leaving it with 36,606 shares valued at about $31.6 million.
• Costco’s latest quarterly earnings were mixed: revenue of $70.53 billion beat expectations, but EPS of $4.93 came in slightly below the $4.98 consensus estimate.
• Analysts remain generally constructive on the stock, with Costco carrying a Moderate Buy consensus and an average price target of $1,051.18, while the company also recently raised its quarterly dividend to $1.47 per share.

Intech Investment Management LLC reduced its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 11.6% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 36,606 shares of the retailer's stock after selling 4,792 shares during the period. Intech Investment Management LLC's holdings in Costco Wholesale were worth $31,567,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. Hurley Capital LLC boosted its holdings in shares of Costco Wholesale by 120.0% during the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after buying an additional 18 shares during the period. Entrust Financial LLC bought a new stake in shares of Costco Wholesale during the 4th quarter worth $31,000. Abich Financial Wealth Management LLC bought a new stake in shares of Costco Wholesale during the 3rd quarter worth $34,000. Collier Financial bought a new stake in shares of Costco Wholesale during the 3rd quarter worth $35,000. Finally, Joseph Group Capital Management bought a new stake in shares of Costco Wholesale during the 4th quarter worth $33,000. 68.48% of the stock is owned by institutional investors.

Insider Activity

In other news, EVP Claudine Adamo sold 730 shares of the stock in a transaction on Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the completion of the transaction, the executive vice president owned 6,121 shares in the company, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.10% of the company's stock.

Analyst Ratings Changes

Several analysts recently issued reports on COST shares. DA Davidson reaffirmed a "neutral" rating and set a $1,000.00 price objective on shares of Costco Wholesale in a report on Friday, April 10th. Roth Mkm reissued a "sell" rating on shares of Costco Wholesale in a report on Wednesday, February 4th. UBS Group increased their price target on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a report on Wednesday, May 20th. TD Cowen reissued a "buy" rating on shares of Costco Wholesale in a report on Friday, March 6th. Finally, Mizuho increased their price target on shares of Costco Wholesale from $1,065.00 to $1,100.00 and gave the company an "outperform" rating in a report on Thursday, April 16th. Twenty-one analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Costco Wholesale has an average rating of "Moderate Buy" and a consensus price target of $1,051.18.

Costco Wholesale Price Performance

Shares of Costco Wholesale stock opened at $995.20 on Friday. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The firm has a fifty day moving average price of $1,008.28 and a two-hundred day moving average price of $962.53. The company has a market cap of $441.52 billion, a PE ratio of 51.75, a price-to-earnings-growth ratio of 4.94 and a beta of 0.92.

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

Costco Wholesale Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were paid a $1.47 dividend. The ex-dividend date was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio is currently 30.58%.

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.

About Costco Wholesale

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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