Nuveen LLC Invests $3.46 Billion in Costco Wholesale Corporation (NASDAQ:COST)

Key Points

• Nuveen LLC acquired a significant new stake in Costco Wholesale Corporation, purchasing approximately 3.66 million shares valued at about $3.46 billion, making Costco its 13th largest holding.
• Costco's recent quarterly earnings report revealed an earnings per share of $4.28, exceeding expectations, with revenue hitting $63.21 billion, an 8% increase from the previous year.
• The company declared a quarterly dividend of $1.30 per share, which will be paid on August 15th, representing a yield of 0.5% and a payout ratio of 29.50%.

Nuveen LLC purchased a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 3,659,581 shares of the retailer's stock, valued at approximately $3,461,159,000. Costco Wholesale accounts for about 1.1% of Nuveen LLC's holdings, making the stock its 13th largest position. Nuveen LLC owned 0.82% of Costco Wholesale as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Peninsula Wealth LLC grew its position in shares of Costco Wholesale by 1.2% in the fourth quarter. Peninsula Wealth LLC now owns 818 shares of the retailer's stock valued at $749,000 after purchasing an additional 10 shares during the period. Bosun Asset Management LLC boosted its position in Costco Wholesale by 1.6% during the fourth quarter. Bosun Asset Management LLC now owns 636 shares of the retailer's stock worth $583,000 after acquiring an additional 10 shares during the last quarter. Corps Capital Advisors LLC boosted its position in Costco Wholesale by 0.7% during the first quarter. Corps Capital Advisors LLC now owns 1,547 shares of the retailer's stock worth $1,463,000 after acquiring an additional 10 shares during the last quarter. Covestor Ltd boosted its position in Costco Wholesale by 8.6% during the first quarter. Covestor Ltd now owns 126 shares of the retailer's stock worth $119,000 after acquiring an additional 10 shares during the last quarter. Finally, NFP Retirement Inc. boosted its position in Costco Wholesale by 1.1% during the fourth quarter. NFP Retirement Inc. now owns 980 shares of the retailer's stock worth $898,000 after acquiring an additional 11 shares during the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale Stock Up 0.8%

Shares of NASDAQ:COST traded up $7.76 during trading hours on Monday, reaching $988.74. The stock had a trading volume of 2,288,841 shares, compared to its average volume of 2,222,014. Costco Wholesale Corporation has a 1 year low of $852.40 and a 1 year high of $1,078.23. The firm's 50 day moving average is $977.93 and its 200-day moving average is $985.43. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.52 and a current ratio of 1.02. The stock has a market capitalization of $438.48 billion, a price-to-earnings ratio of 56.08, a P/E/G ratio of 6.10 and a beta of 0.96.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Thursday, May 29th. The retailer reported $4.28 EPS for the quarter, beating analysts' consensus estimates of $4.24 by $0.04. Costco Wholesale had a net margin of 2.92% and a return on equity of 30.48%. The company had revenue of $63.21 billion for the quarter, compared to the consensus estimate of $62.93 billion. During the same period in the prior year, the firm posted $3.78 EPS. The company's quarterly revenue was up 8.0% compared to the same quarter last year. Research analysts predict that Costco Wholesale Corporation will post 18.03 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Shareholders of record on Friday, August 1st will be given a $1.30 dividend. The ex-dividend date of this dividend is Friday, August 1st. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.5%. Costco Wholesale's dividend payout ratio is currently 29.50%.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Truist Financial boosted their price target on shares of Costco Wholesale from $995.00 to $1,042.00 and gave the stock a "hold" rating in a research report on Friday, May 30th. Erste Group Bank lowered shares of Costco Wholesale from a "buy" rating to a "hold" rating in a research report on Tuesday, August 5th. Loop Capital decreased their target price on shares of Costco Wholesale from $1,115.00 to $1,110.00 and set a "buy" rating on the stock in a report on Thursday, May 29th. Telsey Advisory Group reiterated an "outperform" rating and issued a $1,100.00 target price on shares of Costco Wholesale in a report on Monday, August 4th. Finally, Stifel Nicolaus set a $1,035.00 target price on shares of Costco Wholesale in a report on Thursday, May 29th. Ten analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the company's stock. According to MarketBeat, Costco Wholesale has a consensus rating of "Moderate Buy" and an average price target of $1,050.00.

Insider Activity

In related news, EVP Pierre Riel sold 2,000 shares of the stock in a transaction on Friday, June 6th. The shares were sold at an average price of $1,014.15, for a total value of $2,028,300.00. Following the transaction, the executive vice president directly owned 8,210 shares of the company's stock, valued at $8,326,171.50. This trade represents a 19.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Yoram Rubanenko sold 4,000 shares of the stock in a transaction on Monday, July 14th. The shares were sold at an average price of $974.96, for a total transaction of $3,899,840.00. Following the completion of the transaction, the executive vice president directly owned 5,774 shares in the company, valued at $5,629,419.04. This trade represents a 40.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 9,547 shares of company stock valued at $9,472,510. 0.18% of the stock is currently owned by company insiders.

Costco Wholesale Profile

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.