Steginsky Capital LLC Acquires 6,942 Shares of Costco Wholesale Corporation $COST

Key Points

• Steginsky Capital LLC increased its Costco stake by 5.5% in the fourth quarter, buying 6,942 additional shares and bringing its total to 132,195 shares worth about $114.0 million. Costco is now the fund’s second-largest holding, representing roughly 19.2% of its portfolio.
• Costco reported strong quarterly results, with EPS of $4.58 topping estimates and revenue of $69.60 billion also beating expectations. Revenue rose 9.2% year over year, and analysts still expect the company to earn 20.31 EPS for the full year.
• The company raised its quarterly dividend to $1.47 per share from $1.30, while also continuing to expand its store footprint with a new warehouse opening in New Braunfels, Texas. Despite solid fundamentals, some commentary notes that Costco’s premium valuation remains a key concern for investors.

Steginsky Capital LLC raised its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 5.5% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 132,195 shares of the retailer's stock after buying an additional 6,942 shares during the quarter. Costco Wholesale accounts for about 19.2% of Steginsky Capital LLC's investment portfolio, making the stock its 2nd largest position. Steginsky Capital LLC's holdings in Costco Wholesale were worth $113,997,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in COST. Hurley Capital LLC grew its holdings in Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock valued at $31,000 after buying an additional 18 shares during the last quarter. Joseph Group Capital Management acquired a new stake in Costco Wholesale in the 4th quarter valued at approximately $33,000. Abich Financial Wealth Management LLC acquired a new stake in Costco Wholesale in the 3rd quarter valued at approximately $34,000. Collier Financial acquired a new stake in Costco Wholesale in the 3rd quarter valued at approximately $35,000. Finally, AXS Investments LLC acquired a new stake in Costco Wholesale in the 3rd quarter valued at approximately $36,000. Institutional investors and hedge funds own 68.48% of the company's stock.

Insider Activity at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of the business's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the sale, the executive vice president owned 6,121 shares in the company, valued at approximately $6,139,485.42. The trade was a 10.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale Price Performance

Shares of COST stock opened at $1,048.95 on Friday. The stock has a 50 day moving average of $1,000.90 and a two-hundred day moving average of $955.06. 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 Corporation has a 12 month low of $844.06 and a 12 month high of $1,067.08. The company 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 announced its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, beating 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 business had revenue of $69.60 billion for the quarter, compared to analyst estimates of $68.96 billion. During the same quarter in the previous year, the firm earned $4.02 EPS. Costco Wholesale's quarterly revenue was up 9.2% on a year-over-year basis. As a group, equities analysts expect that Costco Wholesale Corporation will post 20.31 EPS for the current year.

Costco Wholesale Increases Dividend

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

Key Stories 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)

Analysts Set New Price Targets

COST has been the subject of a number of research reports. Truist Financial raised their price objective on Costco Wholesale from $926.00 to $977.00 and gave the stock a "hold" rating in a research report on Friday, March 6th. Citigroup reiterated a "neutral" rating on shares of Costco Wholesale in a research report on Friday, February 20th. Gordon Haskett raised their price objective on Costco Wholesale from $1,000.00 to $1,100.00 in a research report on Tuesday, February 3rd. Oppenheimer raised their price objective on Costco Wholesale from $1,050.00 to $1,100.00 and gave the stock an "outperform" rating in a research report on Thursday, February 5th. Finally, Evercore set a $1,100.00 price objective on Costco Wholesale in a research report on Monday, March 2nd. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $1,047.27.

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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