MV Capital Management Inc. Acquires New Position in Costco Wholesale Corporation $COST

Key Points

• MV Capital Management opened a new position in Costco Wholesale during the fourth quarter, buying 4,501 shares valued at about $3.88 million.
• Costco reported quarterly EPS of $4.93, just below the $4.94 consensus estimate, while revenue came in at $70.53 billion, slightly above expectations.
• The company also raised its quarterly dividend to $1.47 per share from $1.30, increasing the annualized payout to $5.88 and highlighting its continued shareholder returns.

MV Capital Management Inc. acquired a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 4,501 shares of the retailer's stock, valued at approximately $3,881,000.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Mcguire Capital Advisors Inc. bought a new position in Costco Wholesale in the 4th quarter worth about $28,000. Hurley Capital LLC increased its position in shares of Costco Wholesale by 120.0% during 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 during the period. Entrust Financial LLC purchased a new position in Costco Wholesale during the fourth quarter valued at approximately $31,000. Joseph Group Capital Management purchased a new position in Costco Wholesale during the fourth quarter valued at approximately $33,000. Finally, Imprint Wealth LLC purchased a new position in Costco Wholesale during the third quarter valued at approximately $36,000. Institutional investors own 68.48% of the company's stock.

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 P/E ratio of 47.86, a PEG ratio of 4.68 and a beta of 0.88. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The stock has a 50 day moving average price of $1,001.77 and a two-hundred day moving average price of $969.14.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its 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). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The firm had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. During the same quarter in the prior year, the business posted $4.28 EPS. Analysts expect that Costco Wholesale Corporation will post 20.38 earnings per share for the current 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 given a $1.47 dividend. The ex-dividend date was Friday, May 1st. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio is presently 29.58%.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco continues to show strong underlying demand, with May sales growth, high membership renewal rates, and faster-growing digital/e-commerce channels supporting the long-term growth story. How Investors May Respond To Costco (COST) Digital Momentum Amid Valuation Jitters And Macro Uncertainty
• Positive Sentiment: Costco lowered prices on some Kirkland Signature items, reinforcing its value proposition for inflation-conscious shoppers and potentially helping traffic and member loyalty. Why Weakness in Dividend-Paying Costco Stock Is a Strong Buying Opportunity
• Positive Sentiment: A new Costco gas station was approved in a Bay Area city, adding another potential traffic driver and incremental fuel-related sales opportunity. This Bay Area city approves new Costco gas station
• Neutral Sentiment: Citigroup initiated coverage with a neutral rating and a $1,020 price target, which is above the recent trading level but does not signal a strong near-term catalyst. Benzinga coverage of Citigroup initiation
• Negative Sentiment: Analyst commentary is divided, with one report noting that Costco shares fell after Citi and Bernstein issued conflicting views, adding to uncertainty around the stock’s premium valuation. Costco Stock (COST) Drops as Analysts Can’t Agree on the Big-Box Retailer
• Negative Sentiment: Several recent articles focus on whether Costco’s stock is too expensive near the $1,000 level, reflecting valuation jitters that can pressure shares when growth expectations are already high. Costco at $1,000: A Timeless Business, Is the Stock Still a Buy or a Bubble?

Analysts Set New Price Targets

COST has been the topic of several recent analyst reports. HC Wainwright reiterated a "buy" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a research report on Monday, June 1st. Weiss Ratings raised shares of Costco Wholesale from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, June 4th. JPMorgan Chase & Co. increased their price objective on Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an "overweight" rating in a research report on Friday, April 17th. Finally, TD Cowen reissued a "buy" rating and set a $1,175.00 price objective on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Twenty-two equities 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 company's stock. Based on data from MarketBeat.com, Costco Wholesale has an average rating of "Moderate Buy" and a consensus price target of $1,061.45.

About Costco Wholesale

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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