Shepherd Street Advisors LLC Makes New Investment in Costco Wholesale Corporation $COST

Key Points

• Shepherd Street Advisors LLC opened a new position in Costco, buying 1,592 shares worth about $1.37 million in the fourth quarter. The stock now makes up 1.3% of the firm’s portfolio.
• Costco’s latest quarterly results were mixed: revenue topped estimates at $70.53 billion, but EPS came in just below expectations at $4.93 versus $4.94. The company also raised its quarterly dividend to $1.47 per share from $1.30.
• Despite strong business trends and bullish analyst coverage, Costco shares have faced pressure as investors focus on valuation and post-earnings expectations. Analysts currently have a consensus rating of Moderate Buy with an average price target of $1,056.32.

Shepherd Street Advisors LLC bought a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 1,592 shares of the retailer's stock, valued at approximately $1,373,000. Costco Wholesale accounts for 1.3% of Shepherd Street Advisors LLC's portfolio, making the stock its 26th largest holding.

Other institutional investors have also recently bought and sold shares of the company. FORA Capital LLC acquired a new position in shares of Costco Wholesale in the 3rd quarter valued at $2,781,000. World Investment Advisors grew its holdings in shares of Costco Wholesale by 8.4% in the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock valued at $15,835,000 after buying an additional 1,560 shares during the period. Teacher Retirement System of Texas grew its holdings in shares of Costco Wholesale by 24.5% in the 4th quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer's stock valued at $121,098,000 after buying an additional 27,625 shares during the period. Curtis Advisory Group LLC grew its holdings in shares of Costco Wholesale by 56.7% in the 4th quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer's stock valued at $3,911,000 after buying an additional 1,641 shares during the period. Finally, Mariner LLC grew its holdings in shares of Costco Wholesale by 1.5% in the 3rd quarter. Mariner LLC now owns 399,894 shares of the retailer's stock valued at $370,140,000 after buying an additional 5,937 shares during the period. Institutional investors and hedge funds own 68.48% of the company's stock.

More Costco Wholesale News

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

• Positive Sentiment: Costco reported robust fiscal Q3 results, including double-digit sales growth, strong comparable sales, and continued strength in memberships and digital operations, which supports the long-term investment case. Article Title
• Positive Sentiment: Jefferies said Costco’s value strategy, membership growth, and fuel business continue to support sales momentum, reinforcing confidence in the company’s operating model. Article Title
• Positive Sentiment: Analysts highlighted Costco’s strong traffic trends and larger baskets, suggesting the company is still gaining share with shoppers even as the stock weakens. Article Title
• Positive Sentiment: Costco’s record gas sales and surprisingly strong protein sales show continued demand across key categories, which may help offset concerns about slower overall momentum. Article Title
• Neutral Sentiment: Multiple market commentaries say Costco is attracting heavy investor attention after earnings, but the stock remains stuck in a post-results pullback as traders weigh the next catalyst. Article Title
• Neutral Sentiment: Several articles note that Costco’s stock has failed to rally after its strong quarter, implying investors may already have high expectations priced in. Article Title
• Negative Sentiment: Costco was downgraded in a blue-chip rankings update, adding to the cautious tone around the shares. Article Title
• Negative Sentiment: Commentary from Jim Cramer and other analysts suggested Costco could have done better, reinforcing concerns that the market expected even more from the latest report. Article Title
• Negative Sentiment: Market coverage says COST is falling despite record-breaking gas sales, underscoring that investors are focusing on valuation and the post-earnings setup rather than the headline growth. Article Title

Costco Wholesale Trading Up 0.9%

COST opened at $954.27 on Wednesday. The stock has a market capitalization of $423.36 billion, a P/E ratio of 48.00, a P/E/G ratio of 4.59 and a beta of 0.88. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The firm's fifty day simple moving average is $1,007.23 and its 200 day simple moving average is $963.04. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). The company had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.72%. During the same period in the prior year, the firm posted $4.28 earnings per share. As a group, research analysts anticipate that Costco Wholesale Corporation will post 20.36 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were given a dividend of $1.47 per share. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale's payout ratio is presently 29.58%.

Insider Buying and Selling

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the business'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 sale, the executive vice president directly owned 6,121 shares of the company's stock, valued at $6,139,485.42. The trade was a 10.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 0.10% of the stock is owned by company insiders.

Analysts Set New Price Targets

COST has been the subject of several research analyst reports. Jefferies Financial Group reissued a "buy" rating and issued a $1,050.00 price target on shares of Costco Wholesale in a report on Thursday, March 5th. Robert W. Baird set a $1,100.00 price target on shares of Costco Wholesale in a report on Thursday, February 5th. Truist Financial boosted their price target on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a report on Friday, May 29th. JPMorgan Chase & Co. boosted their price objective on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an "overweight" rating in a research report on Friday, April 17th. Finally, Sanford C. Bernstein boosted their price objective on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an "outperform" rating in a research report on Friday, May 29th. 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 company's stock. Based on data from MarketBeat.com, Costco Wholesale presently has an average rating of "Moderate Buy" and a consensus price target of $1,056.32.

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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