Profund Advisors LLC Increases Position in Costco Wholesale Corporation $COST

Key Points

• Profund Advisors LLC increased its Costco stake by 6.3% in the fourth quarter, adding 2,264 shares and bringing its total to 38,178 shares worth about $32.9 million.
• Wall Street remains bullish on Costco, with 22 analysts rating it a Buy and a consensus target price of $1,047.27, even after recent target hikes from firms like Mizuho and Raymond James.
• Costco’s business momentum is strong: its latest quarter beat EPS and revenue estimates, revenue rose 9.2% year over year, and the company raised its quarterly dividend by 13% to $1.47 per share.

Profund Advisors LLC lifted its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 6.3% during the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 38,178 shares of the retailer's stock after buying an additional 2,264 shares during the period. Costco Wholesale makes up approximately 1.0% of Profund Advisors LLC's portfolio, making the stock its 15th biggest holding. Profund Advisors LLC's holdings in Costco Wholesale were worth $32,922,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in shares of Costco Wholesale by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer's stock worth $37,615,889,000 after buying an additional 165,349 shares during the last quarter. Amundi boosted its stake in shares of Costco Wholesale by 45.0% in the 3rd quarter. Amundi now owns 3,176,606 shares of the retailer's stock worth $2,893,697,000 after buying an additional 986,182 shares during the last quarter. Fisher Asset Management LLC boosted its stake in shares of Costco Wholesale by 1.1% in the 3rd quarter. Fisher Asset Management LLC now owns 3,145,241 shares of the retailer's stock worth $2,911,331,000 after buying an additional 34,826 shares during the last quarter. American Century Companies Inc. boosted its stake in shares of Costco Wholesale by 8.5% in the 3rd quarter. American Century Companies Inc. now owns 1,619,703 shares of the retailer's stock worth $1,499,246,000 after buying an additional 127,495 shares during the last quarter. Finally, Principal Financial Group Inc. boosted its stake in shares of Costco Wholesale by 0.7% in the 3rd quarter. Principal Financial Group Inc. now owns 1,210,837 shares of the retailer's stock worth $1,120,787,000 after buying an additional 8,259 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on COST. Mizuho boosted their target price on Costco Wholesale from $1,065.00 to $1,100.00 and gave the stock an "outperform" rating in a research note on Thursday, April 16th. Truist Financial increased their target price on shares of Costco Wholesale from $926.00 to $977.00 and gave the company a "hold" rating in a research report on Friday, March 6th. Jefferies Financial Group reissued a "buy" rating and set a $1,050.00 target price on shares of Costco Wholesale in a research report on Thursday, March 5th. Raymond James Financial increased their target price on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an "outperform" rating in a research report on Friday, March 6th. Finally, TD Cowen reissued a "buy" rating on shares of Costco Wholesale in a research report on Friday, March 6th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $1,047.27.

Costco Wholesale Stock Up 2.6%

Costco Wholesale stock opened at $1,076.47 on Tuesday. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,079.83. The firm has a 50 day moving average price of $1,002.78 and a 200-day moving average price of $956.31. The company has a market capitalization of $477.58 billion, a P/E ratio of 55.98, a P/E/G ratio of 5.16 and a beta of 0.92. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. The firm had revenue of $69.60 billion during the quarter, compared to the consensus estimate of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The company's revenue was up 9.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.02 EPS. As a group, equities analysts predict that Costco Wholesale Corporation will post 20.31 EPS for the current year.

Costco Wholesale Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors 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 dividend yield of 0.5%. The ex-dividend date was Friday, May 1st. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio is currently 30.58%.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco reported strong April sales, with net sales up 13.0% year over year, comparable sales rising 11.6%, and digital sales climbing 18.8%, reinforcing its reputation as a defensive retailer benefiting from value-focused consumer spending. Costco's April Sales Reinforce Its Case as the Ultimate Defensive Stock
• Positive Sentiment: The company boosted its quarterly dividend by 13% to $1.47 per share, a signal of confidence in cash generation that can attract income-oriented investors. Costco (COST) Surges to New 52-Week Peak Following Strong Dividend Boost
• Positive Sentiment: Several articles framed Costco as a breakout candidate after its recent rally, with commentary pointing to strong year-to-date momentum and a new 52-week high. Prediction: The Stage is Set for a Costco Stock Breakout
• Positive Sentiment: Costco is also gaining attention for product expansion and brand strength, including a test of new chicken strips in food courts and a broader rollout of mixsoon skincare products across U.S. warehouse locations. Costco is testing chicken strips in food courts and customers say they’re ginormous
• Neutral Sentiment: One article highlighted a legal issue tied to a disability discrimination verdict, which adds some headline risk but appears smaller than the company’s sales and dividend positives. How Investors Are Reacting To Costco Wholesale (COST) Double‑Digit April Sales, Florida Expansion And Jury Verdict
• Neutral Sentiment: Analyst commentary remains constructive overall, with coverage describing Costco as resilient and well positioned, but these pieces mainly reinforce an already favorable narrative rather than introducing a new catalyst. The Zacks Analyst Blog Highlights Costco, Coca-Cola, AstraZeneca and Franklin Financial Services

Insider Activity at Costco Wholesale

In related news, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction that occurred on 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 sale, 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 position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.10% of the company's stock.

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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