J. Derek Lewis & Associates Inc. Buys New Holdings in Costco Wholesale Corporation $COST

Key Points

• J. Derek Lewis & Associates opened a new position in Costco during the fourth quarter, buying 4,551 shares valued at about $3.9 million. The holding now makes up roughly 0.9% of the firm’s portfolio.
• Institutional interest in Costco remains heavy, with several large funds significantly adding to their stakes and institutions owning 68.48% of the company’s shares.
• Costco reported fiscal-quarter EPS of $4.93, just below expectations, while revenue of $70.53 billion slightly topped estimates. The company also raised its quarterly dividend to $1.47 per share from $1.30.

J. Derek Lewis & Associates Inc. purchased a new position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 4,551 shares of the retailer's stock, valued at approximately $3,924,000. Costco Wholesale comprises about 0.9% of J. Derek Lewis & Associates Inc.'s portfolio, making the stock its 22nd biggest position.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Norges Bank purchased a new position in Costco Wholesale in the fourth quarter valued at $5,195,415,000. Corient Private Wealth LLC lifted its holdings in Costco Wholesale by 838.9% during the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock worth $5,282,182,000 after buying an additional 5,472,968 shares during the last quarter. Cardano Risk Management B.V. boosted its position in shares of Costco Wholesale by 907.1% during the 4th quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer's stock worth $1,539,346,000 after acquiring an additional 1,607,833 shares in the last quarter. Assenagon Asset Management S.A. boosted its position in shares of Costco Wholesale by 1,586.8% during the 4th quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer's stock worth $980,857,000 after acquiring an additional 1,070,005 shares in the last quarter. Finally, Amundi increased its holdings in shares of Costco Wholesale by 45.0% in the 3rd quarter. Amundi now owns 3,176,606 shares of the retailer's stock valued at $2,893,697,000 after acquiring an additional 986,182 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Price Performance

Shares of NASDAQ COST opened at $951.45 on Monday. The stock has a fifty day moving average price of $1,000.19 and a 200 day moving average price of $969.42. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The company has a market cap of $421.95 billion, a PE ratio of 47.86, a P/E/G ratio of 4.61 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period in the prior year, the firm posted $4.28 earnings per share. Sell-side analysts forecast that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were paid 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 positive change from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date was Friday, May 1st. Costco Wholesale's dividend payout ratio (DPR) is presently 29.58%.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on COST shares. Roth Mkm raised their target price on Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research report on Friday, May 29th. The Goldman Sachs Group increased their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research note on Friday, May 29th. UBS Group raised 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. Evercore set a $1,100.00 price objective on shares of Costco Wholesale in a research report on Monday, March 2nd. Finally, Citigroup assumed coverage on shares of Costco Wholesale in a report on Thursday. They issued a "neutral" rating and a $1,020.00 target price for the company. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $1,061.45.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco’s latest operating update showed strong momentum, with comparable sales up 9.8%, membership fees rising 10.7%, and digitally enabled sales jumping 21.5%, reinforcing the company’s durable growth story. Prediction: Costco Will Trade At This Price in 2027
• Positive Sentiment: Analysts and commentators continue to highlight Costco’s competitive advantages, loyal membership base, and ongoing technology investments to improve the shopping experience and ease customer pain points like parking. Costco tackles major frustration for members
• Positive Sentiment: Several recent articles frame the stock weakness as a possible buying opportunity, pointing to Costco’s resilient business model and long-term compounding potential. Why Weakness in Dividend-Paying Costco Stock Is a Strong Buying Opportunity
• Neutral Sentiment: Fresh media coverage around Costco products, store hours, and local development approvals is supportive of brand visibility, but these items are unlikely to materially move the stock on their own. Is Costco open on Juneteenth?
• Negative Sentiment: Investor sentiment remains cautious because Costco’s premium valuation is being questioned amid macro uncertainty and sticky inflation, with one recent note saying growth may not fully justify the stock’s price. Should You Buy Costco Stock for the Long Haul? Here's the Honest Answer.
• Negative Sentiment: Analyst disagreement is also weighing on the shares, with one report noting Costco fell after Citi and Bernstein issued conflicting views on the big-box retailer. Costco Stock (COST) Drops as Analysts Can’t Agree on the Big-Box Retailer

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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