Moors & Cabot Inc. Cuts Stock Holdings in Costco Wholesale Corporation $COST

Key Points

• Moors & Cabot Inc. reduced its Costco stake by 22.6% in the fourth quarter, selling 2,821 shares and leaving it with 9,672 shares worth about $8.34 million.
• Costco reported mixed quarterly results: revenue topped expectations at $70.53 billion, but EPS of $4.93 came in slightly below consensus estimates of $4.98.
• The company recently raised its quarterly dividend to $1.47 per share from $1.30, while analysts remain broadly positive with a consensus rating of “Moderate Buy.”

Moors & Cabot Inc. cut its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 22.6% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 9,672 shares of the retailer's stock after selling 2,821 shares during the period. Moors & Cabot Inc.'s holdings in Costco Wholesale were worth $8,341,000 as of its most recent SEC filing.

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

Insider Buying and Selling

In other news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total value of $732,204.60. Following the sale, the executive vice president directly owned 6,121 shares in the company, valued at approximately $6,139,485.42. This trade represents a 10.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.10% of the stock is owned by insiders.

Costco Wholesale Price Performance

Shares of Costco Wholesale stock opened at $995.20 on Friday. The business's 50-day moving average price is $1,008.28 and its 200-day moving average price is $962.53. The firm has a market capitalization of $441.52 billion, a PE ratio of 51.75, a price-to-earnings-growth ratio of 4.94 and a beta of 0.92. 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 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.98 by ($0.05). The business had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $69.68 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. During the same period in the prior year, the business posted $4.28 EPS. Sell-side analysts forecast that Costco Wholesale Corporation will post 20.33 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. Stockholders of record on Friday, May 1st were paid a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale's payout ratio is currently 30.58%.

More Costco Wholesale News

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

• Positive Sentiment: Costco reported stronger-than-expected sales, including U.S. same-store sales growth of 9.8% and adjusted comparable sales up 6.6%, showing that demand remains resilient even in a pressured consumer environment.
• Positive Sentiment: Revenue came in above Wall Street expectations, with $70.53 billion in quarterly sales versus estimates of $69.68 billion, reinforcing the company’s ability to keep growing at scale.
• Positive Sentiment: Membership and gas-related traffic appear to be supporting results, with higher fuel prices bringing more shoppers into warehouses and boosting basket sizes and same-store sales.
• Neutral Sentiment: EPS of $4.93 was slightly below the consensus estimate of $4.98, making the report mixed rather than uniformly strong, even though profits still improved year over year.
• Neutral Sentiment: Several pre-earnings articles framed Costco as a high-quality defensive retailer with a premium valuation, suggesting investors may continue to focus on whether the stock can justify its elevated multiple.
• Negative Sentiment: The small earnings miss could temper enthusiasm in the near term, especially given the stock’s recent run-up and the market’s high expectations heading into the print.

Wall Street Analyst Weigh In

Several analysts have commented on COST shares. Rothschild & Co Redburn lifted their price objective on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 17th. Telsey Advisory Group upped their price target on Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an "outperform" rating in a research report on Thursday, April 9th. JPMorgan Chase & Co. lifted their price objective on Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an "overweight" rating in a report on Friday, April 17th. UBS Group boosted their price objective on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a research note on Wednesday, May 20th. Finally, Sanford C. Bernstein restated an "outperform" rating and issued a $1,192.00 target price on shares of Costco Wholesale in a research note on Tuesday, May 12th. Twenty-one equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Costco Wholesale presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,051.18.

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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