King Luther Capital Management Corp Purchases 3,626 Shares of Costco Wholesale Corporation $COST

Key Points

• King Luther Capital Management increased its Costco stake by 7.8% in the fourth quarter, buying 3,626 shares and bringing its total to 49,840 shares valued at about $43.0 million.
• Several analysts remain bullish on Costco, with recent price-target boosts and a consensus rating of “Moderate Buy”; the average target price is currently $1,052.60.
• Costco continues to show solid operating momentum, with its latest quarter topping earnings and revenue expectations, while the company also raised its quarterly dividend to $1.47 per share.

King Luther Capital Management Corp lifted its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 7.8% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 49,840 shares of the retailer's stock after buying an additional 3,626 shares during the period. King Luther Capital Management Corp's holdings in Costco Wholesale were worth $42,979,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the company. Hurley Capital LLC increased its holdings in 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 purchasing an additional 18 shares in the last quarter. Entrust Financial LLC bought a new position in Costco Wholesale during the 4th quarter worth about $31,000. Joseph Group Capital Management bought a new position in Costco Wholesale during the 4th quarter worth about $33,000. Abich Financial Wealth Management LLC bought a new position in Costco Wholesale during the 3rd quarter worth about $34,000. Finally, Collier Financial bought a new position in Costco Wholesale during the 3rd quarter worth about $35,000. Institutional investors own 68.48% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. Evercore set a $1,100.00 target price on Costco Wholesale in a report on Monday, March 2nd. TD Cowen reiterated a "buy" rating on shares of Costco Wholesale in a report on Friday, March 6th. Raymond James Financial increased their target price 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. BMO Capital Markets increased their target price on 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, Oppenheimer increased their target price on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a report on Tuesday, May 19th. 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. According to data from MarketBeat.com, Costco Wholesale currently has an average rating of "Moderate Buy" and an average target price of $1,052.60.

Key Costco Wholesale News

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

• Positive Sentiment: Bank of America reiterated a Buy rating and kept its $1,185 price target, reinforcing the view that Costco (COST) still has upside if it delivers another solid quarter. Article Title
• Positive Sentiment: Analysts and options traders expect a meaningful post-earnings move, highlighting how much attention Costco is drawing heading into results. Article Title
• Positive Sentiment: Recent coverage points to strong membership growth, digital gains, and AI-driven personalization as drivers of continued sales momentum for Costco. Article Title
• Neutral Sentiment: Multiple previews say Costco is well positioned for earnings, but its premium valuation may limit enthusiasm unless the company beats expectations convincingly. Article Title
• Negative Sentiment: A federal jury ruled against Costco in a disability discrimination case, adding a legal and compliance overhang and potential extra costs from attorneys’ fees. Article Title
• Negative Sentiment: One article noted the shares are slipping ahead of earnings, reflecting investor caution and valuation concerns rather than a major operational setback. Article Title

Costco Wholesale Price Performance

Shares of NASDAQ COST opened at $1,002.93 on Wednesday. The stock has a market capitalization of $444.95 billion, a price-to-earnings ratio of 52.15, a PEG ratio of 5.06 and a beta of 0.92. The business has a 50-day moving average of $1,008.26 and a 200-day moving average of $961.45. 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.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 earnings per share for the quarter, beating the consensus estimate of $4.55 by $0.03. The company had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.Costco Wholesale's revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter last year, the company earned $4.02 EPS. As a group, sell-side analysts predict that Costco Wholesale Corporation will post 20.33 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were issued a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date 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%.

Insider Buying and Selling at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of the firm's stock in a transaction dated 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 transaction, the executive vice president owned 6,121 shares in the company, valued at $6,139,485.42. This trade represents a 10.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is owned by insiders.

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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