Kovitz Investment Group Partners LLC Sells 38,824 Shares of Costco Wholesale Corporation $COST

Key Points

• Kovitz Investment Group Partners LLC cut its Costco position by 91.1% in the fourth quarter, selling 38,824 shares and leaving it with 3,784 shares worth about $3.26 million.
• Costco’s business trends remain strong, with recent operating results showing comparable sales up 9.8%, membership fees rising 10.7%, and digitally enabled sales climbing 21.5%.
• Despite the company’s solid performance, investors are still debating Costco’s premium valuation, and analysts remain mixed even though the overall consensus rating is still Moderate Buy.

Kovitz Investment Group Partners LLC decreased its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 91.1% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 3,784 shares of the retailer's stock after selling 38,824 shares during the quarter. Kovitz Investment Group Partners LLC's holdings in Costco Wholesale were worth $3,263,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also added to or reduced their stakes in COST. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale during the 4th quarter valued at about $28,000. Hurley Capital LLC raised its stake in Costco Wholesale by 120.0% in the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after buying an additional 18 shares in the last quarter. Entrust Financial LLC bought a new position in Costco Wholesale in the fourth quarter worth about $31,000. Joseph Group Capital Management purchased a new stake in Costco Wholesale in the fourth quarter worth about $33,000. Finally, Imprint Wealth LLC purchased a new stake in Costco Wholesale in the third quarter worth about $36,000. Institutional investors own 68.48% of the company's stock.

Key Costco Wholesale News

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

Analyst Ratings Changes

A number of research analysts have weighed in on the company. BTIG Research reiterated a "buy" rating and set a $1,125.00 target price on shares of Costco Wholesale in a report on Friday, May 29th. DA Davidson restated a "neutral" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a research note on Thursday, June 4th. Truist Financial lifted their price target on Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a research report on Friday, May 29th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $1,050.00 price target on shares of Costco Wholesale in a research note on Thursday, March 5th. Finally, Bank of America increased their price objective on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,061.45.

Costco Wholesale Stock Performance

NASDAQ COST opened at $951.45 on Friday. 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 cap of $421.95 billion, a P/E ratio of 47.86, a P/E/G ratio of 4.61 and a beta of 0.88. The stock's fifty day moving average price is $1,000.19 and its 200-day moving average price is $969.01. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17.

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 the consensus estimate of $4.94 by ($0.01). The company had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same quarter in the previous year, the business earned $4.28 earnings per share. As a group, equities analysts forecast that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were paid a dividend of $1.47 per share. The ex-dividend date was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio (DPR) is 29.58%.

Costco Wholesale 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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