MidFirst Bank Invests $9 Million in Costco Wholesale Corporation $COST

Key Points

• MidFirst Bank initiated a new position in Costco Wholesale during the fourth quarter, buying 10,436 shares valued at about $9 million.
• Costco continues to show solid operating momentum, with comparable sales up 9.8%, membership fees rising 10.7%, and digitally enabled sales jumping 21.5%.
• The stock remains a point of debate: Costco beat revenue expectations but missed EPS by a penny, while analysts are split between bullish and neutral views amid concerns about its premium valuation.

MidFirst Bank purchased 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 SEC. The institutional investor purchased 10,436 shares of the retailer's stock, valued at approximately $9,000,000.

Other hedge funds have also recently bought and sold shares of the company. Mcguire Capital Advisors Inc. purchased a new stake in Costco Wholesale during the fourth quarter worth $28,000. Hurley Capital LLC increased its position in shares of Costco Wholesale by 120.0% in the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock valued at $31,000 after buying an additional 18 shares in the last quarter. Entrust Financial LLC purchased a new position in shares of Costco Wholesale in the fourth quarter valued at $31,000. Joseph Group Capital Management acquired a new position in shares of Costco Wholesale during the 4th quarter worth $33,000. Finally, Imprint Wealth LLC acquired a new position in shares of Costco Wholesale during the 3rd quarter worth $36,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Costco Wholesale

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

Costco Wholesale Stock Performance

Shares of COST stock opened at $951.45 on Friday. The company has a market capitalization of $421.95 billion, a price-to-earnings ratio of 47.86, a PEG ratio of 4.61 and a beta of 0.88. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The firm has a 50-day moving average price of $1,000.19 and a 200 day moving average price of $969.01. 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 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). The firm had revenue of $70.53 billion for the quarter, compared to analyst estimates 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 prior year, the business earned $4.28 earnings per share. Research 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. Investors of record on Friday, May 1st were given a dividend of $1.47 per share. 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. The ex-dividend date was Friday, May 1st. Costco Wholesale's dividend payout ratio (DPR) is 29.58%.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the stock. Guggenheim reissued a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Evercore set a $1,100.00 target price on shares of Costco Wholesale in a research report on Monday, March 2nd. BTIG Research reaffirmed a "buy" rating and issued a $1,125.00 price target on shares of Costco Wholesale in a report on Friday, May 29th. Citigroup started coverage on shares of Costco Wholesale in a research report on Thursday. They issued a "neutral" rating and a $1,020.00 price target on the stock. Finally, Truist Financial lifted their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research report on Friday, May 29th. Twenty-two analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $1,061.45.

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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