Kovack Advisors Inc. Purchases 5,102 Shares of Costco Wholesale Corporation $COST

Key Points

• Kovack Advisors Inc. increased its Costco stake by 183.7% in the fourth quarter, buying 5,102 additional shares and lifting its total holdings to 7,879 shares valued at about $6.79 million.
• Costco reported mixed quarterly results, with earnings per share of $4.93 narrowly missing estimates by $0.01 while revenue of $70.53 billion came in slightly above expectations.
• The company also raised its quarterly dividend to $1.47 per share from $1.30, and analysts remain broadly bullish with a consensus rating of Moderate Buy and an average price target of $1,060.41.

Kovack Advisors Inc. grew its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 183.7% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The fund owned 7,879 shares of the retailer's stock after buying an additional 5,102 shares during the quarter. Kovack Advisors Inc.'s holdings in Costco Wholesale were worth $6,794,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Hurley Capital LLC lifted its position in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after purchasing an additional 18 shares during the last quarter. Entrust Financial LLC bought a new position in shares of Costco Wholesale in the fourth quarter worth about $31,000. Joseph Group Capital Management purchased a new position in Costco Wholesale in the 4th quarter worth about $33,000. Abich Financial Wealth Management LLC bought a new stake in Costco Wholesale during the 3rd quarter valued at about $34,000. Finally, Imprint Wealth LLC bought a new position in Costco Wholesale in the 3rd quarter worth about $36,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Stock Down 0.8%

Costco Wholesale stock opened at $975.69 on Friday. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The firm has a market cap of $432.70 billion, a P/E ratio of 49.08, a P/E/G ratio of 4.76 and a beta of 0.88. The business has a fifty day moving average of $1,005.62 and a two-hundred day moving average of $966.63. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). The company had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same period in the previous year, the firm posted $4.28 earnings per share. On average, analysts forecast that Costco Wholesale Corporation will post 20.38 earnings per share 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 $1.47 dividend. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Friday, May 1st. Costco Wholesale's dividend payout ratio is presently 29.58%.

Analyst Ratings Changes

A number of equities analysts have recently commented on COST shares. BMO Capital Markets raised their target price on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an "outperform" rating in a research report on Friday, March 6th. Raymond James Financial raised their price objective 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. Weiss Ratings upgraded Costco Wholesale from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, June 4th. Oppenheimer increased their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 19th. Finally, Rothschild & Co Redburn raised their price target on Costco Wholesale from $890.00 to $1,000.00 and gave the company a "neutral" rating in a research note on Tuesday, February 17th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Costco Wholesale has a consensus rating of "Moderate Buy" and a consensus price target of $1,060.41.

Costco Wholesale News Roundup

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

• Positive Sentiment: Analysts at Erste Group Bank raised their earnings estimates for Costco, lifting FY2026 EPS to $20.49 and FY2027 EPS to $22.61, slightly above prior forecasts and reinforcing confidence in Costco’s long-term earnings power.
• Positive Sentiment: Jim Cramer said he thinks investors should “buy some here,” adding another public bullish call on Costco and keeping the stock in focus as a defensive long-term holding.
• Positive Sentiment: Multiple commentary pieces highlighted Costco’s membership-fee model as a durable, recurring-revenue engine, which continues to appeal to investors looking for steady compounding and defensive growth.
• Positive Sentiment: Costco’s CEO is set to receive a leadership honor for advancing women in corporate governance, adding a modest ESG/governance positive for institutional investors.
• Neutral Sentiment: Articles noted that Costco allows some shopping without a membership in the U.S., a consumer-facing detail that may support traffic but is not likely to materially change fundamentals on its own. Confirmed: Costco Reveals the Only Way to Shop Without a Membership Anywhere in the United States
• Neutral Sentiment: Costco is fighting a lawsuit over claims that its $5 rotisserie chicken is falsely advertised as having “no preservatives,” which creates headline risk but has not yet been shown to affect operations. Costco fires back over lawsuit tied to iconic product as shoppers claim false advertising
• Negative Sentiment: Commentary comparing Costco with Dollar Tree suggested tighter consumer budgets could increase competition on value, which may pressure pricing power at the margin if shoppers trade down.

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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