Pinebridge Investments LLC Takes $70.98 Million Position in Costco Wholesale Corporation $COST

Key Points

• Pinebridge Investments LLC disclosed a new fourth-quarter stake in Costco Wholesale, buying 82,306 shares worth about $70.98 million.
• Costco continues to draw strong institutional and analyst interest, with 68.48% of shares owned by hedge funds and other institutions and the stock carrying a consensus rating of “Moderate Buy”.
• The company remains fundamentally solid: it recently reported May net sales up 14.5% year over year, though investors are still weighing Costco’s premium valuation after a strong rally.

Pinebridge Investments LLC bought a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 82,306 shares of the retailer's stock, valued at approximately $70,976,000.

A number of other institutional investors and hedge funds have also made changes to their positions in COST. Hurley Capital LLC increased its stake in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after acquiring an additional 18 shares during the period. Entrust Financial LLC acquired a new position in shares of Costco Wholesale during the fourth quarter worth about $31,000. Joseph Group Capital Management acquired a new position in shares of Costco Wholesale during the fourth quarter worth about $33,000. Abich Financial Wealth Management LLC acquired a new position in shares of Costco Wholesale during the third quarter worth about $34,000. Finally, Collier Financial acquired a new position in shares of Costco Wholesale during the third quarter worth about $35,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

More Costco Wholesale News

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

Analysts Set New Price Targets

A number of research analysts have recently issued reports on COST shares. Raymond James Financial boosted their price target on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a research note on Friday, March 6th. DA Davidson reiterated a "neutral" rating and set a $1,000.00 price target on shares of Costco Wholesale in a research note on Thursday. Wells Fargo & Company boosted their price target on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 9th. Daiwa Securities Group boosted their price target on shares of Costco Wholesale from $917.00 to $975.00 and gave the stock a "neutral" rating in a research note on Tuesday, March 10th. Finally, HC Wainwright reiterated a "buy" rating on shares of Costco Wholesale in a research note on Monday. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,060.41.

Insiders Place Their Bets

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the transaction, the executive vice president directly owned 6,121 shares in the company, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 0.10% of the company's stock.

Costco Wholesale Trading Down 0.0%

Shares of COST opened at $971.87 on Friday. The company has a current ratio of 1.07, a quick ratio of 0.59 and a debt-to-equity ratio of 0.17. The firm's 50-day moving average is $1,006.71 and its two-hundred day moving average is $963.99. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50. The firm has a market capitalization of $431.17 billion, a P/E ratio of 48.89, a PEG ratio of 4.71 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share 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 company had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same quarter in the previous year, the company posted $4.28 earnings per share. On average, research analysts predict that Costco Wholesale Corporation will post 20.38 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

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

Costco Wholesale 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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