Keudell Morrison Wealth Management Invests $1.52 Million in Costco Wholesale Corporation $COST

Key Points

• Keudell Morrison Wealth Management initiated a new position in Costco during the fourth quarter, buying 1,757 shares valued at about $1.52 million.
• Institutional ownership in Costco remains very high, with hedge funds and other institutions holding about 68.48% of the company’s stock. Several major investors, including Vanguard and Amundi, also increased their stakes recently.
• Analysts remain generally upbeat on Costco after strong earnings and a dividend hike, though some see the stock as richly valued near record highs. The consensus rating is Moderate Buy, with a consensus price target of $1,052.60.

Keudell Morrison Wealth Management bought a new position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 1,757 shares of the retailer's stock, valued at approximately $1,515,000.

A number of other hedge funds have also recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in shares of Costco Wholesale by 0.4% in the fourth quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer's stock worth $37,615,889,000 after buying an additional 165,349 shares during the last quarter. Amundi raised its holdings in Costco Wholesale by 45.0% in the 3rd quarter. Amundi now owns 3,176,606 shares of the retailer's stock worth $2,893,697,000 after purchasing an additional 986,182 shares during the period. Fisher Asset Management LLC raised its holdings in Costco Wholesale by 1.1% in the 3rd quarter. Fisher Asset Management LLC now owns 3,145,241 shares of the retailer's stock worth $2,911,331,000 after purchasing an additional 34,826 shares during the period. American Century Companies Inc. raised its holdings in Costco Wholesale by 8.5% in the 3rd quarter. American Century Companies Inc. now owns 1,619,703 shares of the retailer's stock worth $1,499,246,000 after purchasing an additional 127,495 shares during the period. Finally, Principal Financial Group Inc. raised its holdings in Costco Wholesale by 0.7% in the 3rd quarter. Principal Financial Group Inc. now owns 1,210,837 shares of the retailer's stock worth $1,120,787,000 after purchasing an additional 8,259 shares during the period. Hedge funds and other institutional investors own 68.48% of the company's stock.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: UBS raised its price target on Costco to $1,275 and reiterated a buy rating, signaling confidence in the company’s growth and earnings power. UBS adjusts price target on Costco Wholesale to $1,275 from $1,205, maintains buy rating
• Positive Sentiment: Analysts continue to back Costco ahead of its fiscal Q3 report, saying the company is likely to deliver strong results despite macro pressures. Costco Expected to Deliver Strong Q3 Results Despite Macro Pressures, UBS Says
• Positive Sentiment: Recent articles highlight continued momentum in Costco’s stock, including record highs and renewed split speculation, reflecting strong investor enthusiasm. Costco Stock Tops $1,000 as Split Speculation Builds
• Neutral Sentiment: Costco is expanding its real estate footprint, with new land purchases and rezoning efforts tied to potential warehouse openings in Upstate New York and Central Georgia, which could support future growth but are unlikely to move the stock today. Costco buys $15.6 million in more Upstate NY land from Pyramid
• Neutral Sentiment: Some articles were largely consumer-interest pieces, including Costco’s new dessert, ethnic grocery selection, and the company’s membership/value proposition; these add to brand visibility but are not major stock drivers. Costco pays new members to join with rare offer
• Negative Sentiment: The main pressure point is valuation: with Costco already near record territory, some investors worry there is limited upside unless upcoming earnings clearly exceed lofty expectations. Costco Q3 Preview: Shares Are A Hold As Expectations Run High
• Negative Sentiment: Headlines about a tax dispute in Japan and broader retail competition, including Kroger’s planned price cuts, add a small amount of near-term noise and margin pressure concerns. Costco hit with 1.5 billion yen tab for undeclared consumption tax

Insider Activity at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the transaction, the executive vice president owned 6,121 shares of the company's stock, valued at $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.10% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of research firms recently weighed in on COST. Raymond James Financial upped their price target on Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Friday, March 6th. Telsey Advisory Group upped their price target on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an "outperform" rating in a report on Thursday, April 9th. Wells Fargo & Company upped their price target on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Thursday, April 9th. Roth Mkm reaffirmed a "sell" rating on shares of Costco Wholesale in a report on Wednesday, February 4th. Finally, Robert W. Baird set a $1,100.00 price target on Costco Wholesale in a report on Thursday, February 5th. Twenty-two research 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's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $1,052.60.

Costco Wholesale Price Performance

Shares of Costco Wholesale stock opened at $1,050.45 on Friday. The business has a 50 day simple moving average of $1,007.14 and a two-hundred day simple moving average of $959.65. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The stock has a market capitalization of $466.04 billion, a P/E ratio of 54.63, a PEG ratio of 5.28 and a beta of 0.92. 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 (NASDAQ:COST - Get Free Report) last announced its earnings results on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The business had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. During the same quarter in the prior year, the firm earned $4.02 earnings per share. The business's revenue was up 9.2% compared to the same quarter last year. As a group, analysts predict that Costco Wholesale Corporation will post 20.33 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

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