Main Street Research LLC Cuts Position in Costco Wholesale Corporation $COST

Key Points

• Main Street Research LLC cut its Costco position by 26% in the first quarter, selling 16,227 shares and leaving it with 46,139 shares worth about $45.97 million.
• Despite some investor selling, hedge funds and other institutional investors still own 68.48% of Costco, and several other firms recently increased their stakes.
• Costco reported solid June sales of $29.24 billion and analysts remain broadly positive, with a consensus rating of Moderate Buy and a target price around $1,061.10.

Main Street Research LLC decreased its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 26.0% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 46,139 shares of the retailer's stock after selling 16,227 shares during the period. Costco Wholesale accounts for 2.7% of Main Street Research LLC's portfolio, making the stock its 13th largest position. Main Street Research LLC's holdings in Costco Wholesale were worth $45,974,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in COST. Brighton Jones LLC grew its position in Costco Wholesale by 12.3% during the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock valued at $18,165,000 after purchasing an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC raised its holdings in Costco Wholesale by 13.1% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock worth $1,029,000 after buying an additional 130 shares during the last quarter. Sivia Capital Partners LLC lifted its stake in shares of Costco Wholesale by 4.5% in the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock worth $3,814,000 after buying an additional 165 shares in the last quarter. Pinnacle Wealth Planning Services Inc. lifted its stake in shares of Costco Wholesale by 1.1% in the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock worth $2,089,000 after buying an additional 23 shares in the last quarter. Finally, Schnieders Capital Management LLC. grew its holdings in shares of Costco Wholesale by 2.2% during the second quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock valued at $8,416,000 after buying an additional 182 shares during the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 0.10% of the company's stock.

Key Costco Wholesale News

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

• Positive Sentiment: Bank of America and other analysts reiterated bullish views, saying Costco’s value-focused model and affluent membership base should continue to support market share gains. Costco shares fall after June sales update, Bank of America remains bullish
• Positive Sentiment: Costco posted strong June net sales of $29.24 billion and continued to see robust digital and U.S. demand, which suggests the core business remains healthy. Costco Wholesale Corporation Reports June Sales Results and Announces Quarterly Cash Dividend
• Neutral Sentiment: Costco declared a quarterly dividend, which is supportive for income investors but unlikely to be a major near-term stock mover. Costco Wholesale Corporation Reports June Sales Results and Announces Quarterly Cash Dividend
• Negative Sentiment: A proposed class-action lawsuit alleging Costco’s protein powder contained toxic heavy metals could create legal and reputational overhang. Costco faces class-action lawsuit alleging protein powder was laced with toxic heavy metals

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on COST shares. Bank of America boosted their price objective on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a report on Friday, May 29th. The Goldman Sachs Group lifted their target price on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Citigroup assumed coverage on Costco Wholesale in a research note on Thursday, June 18th. They issued a "neutral" rating and a $1,020.00 price target for the company. Guggenheim reaffirmed a "neutral" rating on shares of Costco Wholesale in a report on Monday, June 1st. Finally, JPMorgan Chase & Co. dropped their price objective on Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating on the stock in a research report on Thursday. 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 stock. Based on data from MarketBeat, Costco Wholesale presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,061.10.

Costco Wholesale Trading Down 4.2%

Costco Wholesale stock opened at $912.97 on Friday. The business has a 50-day simple moving average of $985.31 and a two-hundred day simple moving average of $975.67. The company has a market cap of $404.88 billion, a P/E ratio of 45.92, a P/E/G ratio of 4.62 and a beta of 0.88. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings data 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). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The business had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. During the same quarter last year, the company earned $4.28 EPS. Analysts predict that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Friday, July 24th will be issued a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Friday, July 24th. Costco Wholesale's dividend payout ratio is currently 29.58%.

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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