Qsemble Capital Management LP Has $8.73 Million Stake in Costco Wholesale Corporation $COST

Key Points

• Qsemble Capital Management increased its Costco stake by 61.5% in the fourth quarter, ending with 10,118 shares valued at about $8.73 million. Costco now makes up 0.7% of the firm’s portfolio.
• Costco continues to expand its footprint, highlighted by the opening of a new warehouse in New Braunfels, Texas and the purchase of a 55-acre property in Florida, both of which point to ongoing long-term growth plans.
• The company remains financially strong, recently beating quarterly EPS and revenue estimates and raising its dividend to $1.47 per share. However, the stock trades at a premium valuation, and some analysts remain cautious despite broad institutional and analyst support.

Qsemble Capital Management LP lifted its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 61.5% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 10,118 shares of the retailer's stock after purchasing an additional 3,852 shares during the quarter. Costco Wholesale accounts for 0.7% of Qsemble Capital Management LP's portfolio, making the stock its 26th largest position. Qsemble Capital Management LP's holdings in Costco Wholesale were worth $8,725,000 at the end of the most recent reporting period.

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

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco opened a long-awaited warehouse in New Braunfels, Texas, adding to its store base and reinforcing investor confidence in continued unit growth and market expansion. Long-awaited Costco Wholesale now open in New Braunfels
• Positive Sentiment: Another report confirmed the New Braunfels store is now open for business, underscoring Costco’s ongoing rollout of new locations that can support membership and revenue growth. Costco Wholesale now open for business in New Braunfels
• Positive Sentiment: Analysts and market commentary continue to favor Costco’s membership-driven model, saying it benefits from resilient grocery demand and supports steady growth even in a volatile retail backdrop. WMT or COST: Which Retail Giant Looks More Attractive Now?
• Positive Sentiment: Costco’s purchase of a 55-acre property in Florida suggests the company is still investing in significant long-term store growth, which investors typically view as a sign of confidence in future demand. Costco Just Signed Off on a Massive Retail Real Estate Deal in Florida. Here's What Investors Need to Know About Costco's Store Growth Goals.
• Neutral Sentiment: Articles debating whether Costco is still a good buy after its multi-year rally mostly reinforce that the stock remains a quality business but is expensive, making the reaction more about valuation than any new fundamental change. Is It Too Late To Consider Costco Wholesale (COST) After Its Strong Multi Year Rally
• Neutral Sentiment: Coverage on Costco’s food court chicken tender launch is generating consumer buzz, but the main takeaway is mixed, with some concerns about whether it replaces a favorite item rather than clearly boosting the investment outlook. Costco food court chicken tender launch sparks concerns over item replacement
• Negative Sentiment: Some recent commentary flags Costco’s premium valuation and argues the stock may be difficult to justify at current levels, which can temper enthusiasm despite strong fundamentals. Costco: Strong Fundamentals Meet Growth Premium - A Hold Entering FQ3'26
• Negative Sentiment: Another Seeking Alpha piece argues there is a reason to sell Costco beyond valuation, adding to the cautious tone around the stock’s elevated price level. Costco: Another Reason To Sell (Besides The Valuation)

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Robert W. Baird set a $1,100.00 target price on Costco Wholesale in a research note on Thursday, February 5th. Rothschild & Co Redburn increased their price objective on Costco Wholesale from $890.00 to $1,000.00 and gave the stock a "neutral" rating in a research note on Tuesday, February 17th. JPMorgan Chase & Co. increased their price objective on Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an "overweight" rating in a research note on Friday, April 17th. Bank of America began coverage on 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. Finally, Daiwa Securities Group increased their price objective on Costco Wholesale from $917.00 to $975.00 and gave the stock a "neutral" rating in a research note on Tuesday, March 10th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $1,047.27.

Costco Wholesale Stock Performance

Costco Wholesale stock opened at $1,048.95 on Friday. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. The stock has a fifty day moving average price of $1,000.90 and a two-hundred day moving average price of $955.06. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,067.08. The firm has a market capitalization of $465.37 billion, a P/E ratio of 54.55, a P/E/G ratio of 5.13 and a beta of 0.92.

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

Costco Wholesale Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were given a dividend of $1.47 per share. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date was Friday, May 1st. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale's dividend payout ratio is currently 30.58%.

Insider Transactions at Costco Wholesale

In related 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is currently owned by company insiders.

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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