Principal Financial Group Inc. Decreases Stock Position in Costco Wholesale Corporation $COST

Key Points

• Principal Financial Group trimmed its position in Costco by 2.9%, selling 34,634 shares and holding 1,176,203 shares valued at about $1.014 billion after the quarter.
• Costco raised its quarterly dividend to $1.47 per share (annualized $5.88) with an ex-dividend date of May 1 and payment on May 15.
• Costco slightly beat quarterly expectations with EPS of $4.58 vs. $4.55 and revenue of $69.6 billion (up 9.2% year-over-year); analysts maintain a consensus "Moderate Buy" with a target around $1,046.

Principal Financial Group Inc. decreased its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 2.9% during the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,176,203 shares of the retailer's stock after selling 34,634 shares during the period. Principal Financial Group Inc. owned approximately 0.26% of Costco Wholesale worth $1,014,288,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also bought and sold shares of the company. Graney & King LLC lifted its stake in Costco Wholesale by 6.8% in the second quarter. Graney & King LLC now owns 173 shares of the retailer's stock worth $171,000 after acquiring an additional 11 shares during the period. Seneschal Advisors LLC lifted its stake in Costco Wholesale by 0.4% in the second quarter. Seneschal Advisors LLC now owns 3,142 shares of the retailer's stock worth $3,110,000 after acquiring an additional 11 shares during the period. Pasadena Private Wealth LLC lifted its stake in Costco Wholesale by 0.8% in the third quarter. Pasadena Private Wealth LLC now owns 1,403 shares of the retailer's stock worth $1,299,000 after acquiring an additional 11 shares during the period. Tandem Investment Partners LLC lifted its stake in Costco Wholesale by 1.1% in the third quarter. Tandem Investment Partners LLC now owns 990 shares of the retailer's stock worth $916,000 after acquiring an additional 11 shares during the period. Finally, Optima Capital LLC lifted its stake in Costco Wholesale by 0.9% in the third quarter. Optima Capital LLC now owns 1,192 shares of the retailer's stock worth $1,104,000 after acquiring an additional 11 shares during the period. Institutional investors own 68.48% of the company's stock.

Insider Activity

In other 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 owned 6,121 shares in the company, valued at $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.10% of the stock is currently owned by company insiders.

Costco Wholesale Trading Up 0.1%

NASDAQ COST opened at $1,012.79 on Tuesday. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,067.08. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The firm has a market cap of $449.32 billion, a PE ratio of 52.67, a price-to-earnings-growth ratio of 4.98 and a beta of 0.92. The company has a 50 day moving average price of $996.93 and a 200 day moving average price of $950.04.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The firm had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. During the same quarter in the prior year, the company posted $4.02 earnings per share. The company's revenue for the quarter was up 9.2% compared to the same quarter last year. As a group, sell-side analysts forecast that Costco Wholesale Corporation will post 20.32 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Friday, May 1st will be issued a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date is Friday, May 1st. Costco Wholesale's dividend payout ratio is currently 30.58%.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. BTIG Research restated a "buy" rating and issued a $1,115.00 price target on shares of Costco Wholesale in a report on Thursday, March 5th. Daiwa Securities Group boosted their price objective 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. BMO Capital Markets boosted their price objective on shares of Costco Wholesale from $1,175.00 to $1,315.00 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 objective on shares of Costco Wholesale in a research note on Friday, April 10th. Finally, Bank of America initiated coverage on shares of Costco Wholesale in a research note on Friday, February 27th. They set a "buy" rating and a $1,185.00 price objective for the company. 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 data from MarketBeat, Costco Wholesale currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,045.97.

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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