Sapient Capital LLC Cuts Stock Position in Costco Wholesale Corporation $COST

Key Points

• Sapient Capital LLC trimmed its Costco position by 2.2% in the fourth quarter, but still held 94,293 shares worth about $81.6 million at the end of the period.
• Costco posted better-than-expected earnings and revenue for the quarter, with EPS of $4.58 versus $4.55 expected and revenue of $69.60 billion, up 9.2% from a year earlier.
• The company also raised its quarterly dividend to $1.47 per share from $1.30, while analysts remain broadly positive with a consensus rating of Moderate Buy and an average target price of $1,047.27.

Sapient Capital LLC lessened its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 2.2% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 94,293 shares of the retailer's stock after selling 2,072 shares during the quarter. Costco Wholesale comprises approximately 1.1% of Sapient Capital LLC's portfolio, making the stock its 13th biggest position. Sapient Capital LLC's holdings in Costco Wholesale were worth $81,604,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of COST. Hurley Capital LLC grew its holdings in 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. Joseph Group Capital Management acquired a new position in Costco Wholesale during the fourth quarter worth $33,000. Abich Financial Wealth Management LLC acquired a new position in Costco Wholesale during the third quarter worth $34,000. Collier Financial acquired a new position in Costco Wholesale during the third quarter worth $35,000. Finally, AXS Investments LLC acquired a new position in Costco Wholesale during the third quarter worth $36,000. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Price Performance

Costco Wholesale stock opened at $1,048.95 on Monday. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The firm has a market capitalization of $465.37 billion, a price-to-earnings ratio of 54.55, a price-to-earnings-growth ratio of 5.16 and a beta of 0.92. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,067.08. The stock's fifty day moving average is $1,000.90 and its two-hundred day moving average is $955.24.

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

Costco Wholesale Increases Dividend

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

Analyst Ratings Changes

A number of research analysts recently weighed in on COST shares. The Goldman Sachs Group dropped their price objective on Costco Wholesale from $1,171.00 to $1,088.00 and set a "buy" rating on the stock in a report on Friday, March 6th. BTIG Research reaffirmed a "buy" rating and set a $1,115.00 price objective on shares of Costco Wholesale in a report on Thursday, March 5th. UBS Group set a $1,175.00 price objective on Costco Wholesale in a report on Friday, March 6th. Weiss Ratings raised Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, March 17th. Finally, Deutsche Bank Aktiengesellschaft upped their price objective on Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Twenty-two 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.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $1,047.27.

Insider Activity at Costco Wholesale

In related news, EVP Claudine Adamo sold 730 shares of the stock in a transaction on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the sale, the executive vice president owned 6,121 shares of the company's stock, valued at $6,139,485.42. This trade represents a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is currently owned by insiders.

Costco Wholesale News Summary

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)

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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