Modus Advisors LLC Acquires 1,436 Shares of Costco Wholesale Corporation $COST

Key Points

• Modus Advisors LLC increased its Costco stake by 67.4% in the fourth quarter, buying 1,436 shares and bringing its total holdings to 3,568 shares worth about $3.08 million.
• Institutional ownership remains very high, with major firms like Vanguard, Geode Capital, and Norges Bank also adding to or establishing positions; overall, institutions own 68.48% of Costco’s stock.
• Wall Street sentiment stays constructive despite valuation concerns: analysts’ consensus is Moderate Buy with an average price target of $1,060.41, while Costco continues to post strong sales growth and recently raised its quarterly dividend to $1.47 per share.

Modus Advisors LLC grew its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 67.4% during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 3,568 shares of the retailer's stock after buying an additional 1,436 shares during the period. Modus Advisors LLC's holdings in Costco Wholesale were worth $3,077,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Vanguard Group Inc. raised its position in shares of Costco Wholesale by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer's stock worth $37,615,889,000 after purchasing an additional 165,349 shares during the period. Geode Capital Management LLC raised its position in shares of Costco Wholesale by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer's stock worth $8,919,573,000 after purchasing an additional 26,690 shares during the period. Norges Bank acquired a new position in shares of Costco Wholesale during the fourth quarter worth approximately $5,195,415,000. Bank of New York Mellon Corp raised its position in shares of Costco Wholesale by 5.1% during the fourth quarter. Bank of New York Mellon Corp now owns 3,518,341 shares of the retailer's stock worth $3,034,006,000 after purchasing an additional 170,979 shares during the period. Finally, Amundi raised its position in shares of Costco Wholesale by 45.0% during the third quarter. Amundi now owns 3,176,606 shares of the retailer's stock worth $2,893,697,000 after purchasing an additional 986,182 shares during the period. 68.48% of the stock is currently owned by institutional investors.

Insider Activity

In other news, EVP Claudine Adamo sold 730 shares of the firm's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the sale, the executive vice president directly owned 6,121 shares of the company's stock, valued at $6,139,485.42. This trade represents a 10.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.10% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. Raymond James Financial upped their target price on Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a research report on Friday, March 6th. Citigroup reaffirmed a "neutral" rating on shares of Costco Wholesale in a research report on Friday, February 20th. DA Davidson reaffirmed a "neutral" rating and set a $1,000.00 target price on shares of Costco Wholesale in a research report on Thursday. The Goldman Sachs Group upped their target price on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Finally, Deutsche Bank Aktiengesellschaft upped their target price on Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Twenty-two 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. Based on data from MarketBeat, Costco Wholesale has a consensus rating of "Moderate Buy" and an average price target of $1,060.41.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco posted another strong month, with May net sales up 14.5% year over year to $24.01 billion and comparable sales still running at a healthy pace, reinforcing the view that traffic and spending trends remain solid. Costco Wholesale Corporation Reports May Sales Results
• Positive Sentiment: Analysts continued to point to Costco’s defensive fundamentals, strong U.S. comparable sales, fuel-driven traffic, and growing digital business as reasons for optimism on the stock. Costco Stock (COST) Keeps Wall Street Split despite Accelerating Sales
• Positive Sentiment: Costco’s ability to hold up during the broader market sell-off underscored its reputation as a defensive retailer, which may have helped support investor interest. Why Costco Stock Held Steady During Friday's Market Sell-Off
• Neutral Sentiment: Several articles framed Costco as a high-quality long-term compounder, but also emphasized that its premium valuation leaves less room for error if growth slows. Costco stock price shocks market despite major blowout quarter
• Neutral Sentiment: Costco’s valuation remains a debate point on Wall Street, with some analysts maintaining Buy ratings and high price targets while others argue the stock already reflects much of the good news. Costco: Robust Comps and Reaccelerating Digital Sales Support Buy Rating, Price Target Reaffirmed at $1275
• Negative Sentiment: One recent note argued that Costco’s strong quarter was not enough to offset valuation worries, suggesting investors may be hesitant to pay up after the recent sales-driven rally. Costco's Strong Quarter Still Leaves Investors with a Valuation Problem

Costco Wholesale Trading Down 0.0%

NASDAQ COST opened at $971.87 on Friday. The firm has a market capitalization of $431.00 billion, a P/E ratio of 48.89, a PEG ratio of 4.71 and a beta of 0.88. The business has a fifty day simple moving average of $1,006.71 and a 200 day simple moving average of $963.99. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The company has a current ratio of 1.07, a quick ratio of 0.59 and a debt-to-equity ratio of 0.17.

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 analysts' consensus estimates of $4.94 by ($0.01). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The company had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $70.12 billion. During the same period in the previous year, the company posted $4.28 earnings per share. On average, analysts predict that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were given a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's payout ratio is 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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