Polymer Capital Management HK LTD Purchases New Position in Costco Wholesale Corporation $COST

Key Points

• Polymer Capital Management HK LTD initiated a new position in Costco, buying 2,200 shares worth about $1.9 million in the fourth quarter.
• Costco recently reported quarterly earnings of $4.93 per share, just below estimates, while revenue of $70.53 billion slightly topped expectations. Analysts still expect the company to earn 20.38 EPS for the current fiscal year.
• The company raised its quarterly dividend to $1.47 per share from $1.30, bringing the annualized payout to $5.88 and underscoring its shareholder-return strategy.

Polymer Capital Management HK LTD purchased a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 2,200 shares of the retailer's stock, valued at approximately $1,897,000.

A number of other hedge funds also recently bought and sold shares of COST. Brighton Jones LLC boosted its position in Costco Wholesale by 12.3% during the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock valued at $18,165,000 after acquiring an additional 2,172 shares in the last quarter. Revolve Wealth Partners LLC boosted its position in Costco Wholesale by 13.1% during the 4th 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 in the last quarter. Sivia Capital Partners LLC boosted its position in Costco Wholesale by 4.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock valued at $3,814,000 after acquiring an additional 165 shares in the last quarter. Pinnacle Wealth Planning Services Inc. boosted its position in Costco Wholesale by 1.1% during the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock valued at $2,089,000 after acquiring an additional 23 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its position in Costco Wholesale by 2.2% during the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock valued at $8,416,000 after acquiring an additional 182 shares in the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale Stock Performance

Shares of COST opened at $982.35 on Friday. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The business's 50 day moving average price is $1,005.34 and its 200-day moving average price is $966.74. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50. The stock has a market cap of $435.65 billion, a P/E ratio of 49.41, a P/E/G ratio of 4.73 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the prior year, the firm earned $4.28 earnings per share. Equities research analysts anticipate 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. Stockholders of record on Friday, May 1st were given a $1.47 dividend. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's payout ratio is presently 29.58%.

Key Costco Wholesale News

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

• Positive Sentiment: Erste Group Bank lifted its FY2026 and FY2027 earnings forecasts for Costco, signaling expectations for stronger profitability ahead.
• Positive Sentiment: Commentary in 24/7 Wall St. emphasized Costco’s membership-fee model as a resilient source of recurring revenue that can support long-term earnings growth.
• Positive Sentiment: Barchart coverage noted Costco as one of the retail names rewarding shareholders with a higher dividend, reinforcing the company’s capital-return appeal.
• Neutral Sentiment: Coverage that Costco offers shopping without a membership in limited cases is mainly informational and not likely to materially affect the stock.
• Neutral Sentiment: The Iowa court decision involving a former Costco manager appears to be a legal headline with limited direct impact on the company’s overall financial outlook.
• Negative Sentiment: Bloomberg reported rising plastic input costs may lead to higher prices for consumer goods later this year, which could add inflation pressure to Costco’s retail environment and potentially squeeze margins or demand.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the company. TD Cowen reaffirmed a "buy" rating and set a $1,175.00 price objective on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Roth Mkm lifted their price objective on Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a research report on Friday, May 29th. Guggenheim reaffirmed a "neutral" rating on shares of Costco Wholesale in a research report on Monday, June 1st. BTIG Research reaffirmed a "buy" rating and set a $1,125.00 price objective on shares of Costco Wholesale in a research report on Friday, May 29th. Finally, Citigroup reaffirmed a "neutral" rating on shares of Costco Wholesale in a research report on Friday, February 20th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Costco Wholesale presently has a consensus rating of "Moderate Buy" and an average price target of $1,060.41.

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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