Pacer Advisors Inc. Boosts Stake in Costco Wholesale Corporation $COST

Key Points

• Pacer Advisors Inc. increased its Costco stake by 11.1% in the fourth quarter, buying 7,380 more shares and bringing its total holding to 74,067 shares valued at about $63.9 million.
• Wall Street sentiment remains mostly positive on Costco, with 22 Buy ratings, 11 Hold ratings, and 1 Sell rating. The average analyst target price is $1,061.45, while recent firms have continued to lift their price targets.
• Costco’s latest quarter slightly missed EPS expectations at $4.93 vs. $4.94, but revenue came in above estimates at $70.53 billion. The company also raised its quarterly dividend to $1.47 per share from $1.30, reflecting continued shareholder returns.

Pacer Advisors Inc. raised its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 11.1% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 74,067 shares of the retailer's stock after acquiring an additional 7,380 shares during the quarter. Pacer Advisors Inc.'s holdings in Costco Wholesale were worth $63,871,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Mcguire Capital Advisors Inc. purchased a new stake in shares of Costco Wholesale during the 4th quarter worth $28,000. Hurley Capital LLC grew its stake in 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 purchasing an additional 18 shares during the last quarter. Entrust Financial LLC bought a new position in Costco Wholesale in the fourth quarter worth about $31,000. Joseph Group Capital Management purchased a new stake in shares of Costco Wholesale during the fourth quarter valued at about $33,000. Finally, Imprint Wealth LLC purchased a new stake in shares of Costco Wholesale during the third quarter valued at about $36,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research firms have recently weighed in on COST. JPMorgan Chase & Co. raised their price target on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an "overweight" rating in a report on Friday, April 17th. DA Davidson reissued a "neutral" rating and set a $1,000.00 target price on shares of Costco Wholesale in a research report on Thursday, June 4th. Daiwa Securities Group raised their target price on shares of Costco Wholesale from $917.00 to $975.00 and gave the company a "neutral" rating in a research note on Tuesday, March 10th. UBS Group lifted their price target on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a report on Wednesday, May 20th. Finally, Roth Mkm upped their price target on Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research report on Friday, May 29th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $1,061.45.

Costco Wholesale Price Performance

Shares of COST stock opened at $951.45 on Friday. 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 firm has a market capitalization of $421.95 billion, a price-to-earnings ratio of 47.86, a PEG ratio of 4.68 and a beta of 0.88. The stock's 50-day simple moving average is $1,001.77 and its 200-day simple moving average is $969.14.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). The company had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period in the previous year, the business earned $4.28 earnings per share. As a group, equities analysts forecast that Costco Wholesale Corporation will post 20.38 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were paid a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Friday, May 1st. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio (DPR) is currently 29.58%.

Key Costco Wholesale News

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?

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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