SummitTX Capital L.P. Sells 21,320 Shares of Costco Wholesale Corporation $COST

Key Points

• SummitTX Capital cut its Costco stake by 67.2% in the first quarter, selling 21,320 shares and retaining 10,395 shares valued at approximately $10.36 million. Institutional investors collectively own 68.48% of Costco.
• Costco’s latest quarter showed $70.53 billion in revenue, above estimates, while EPS of $4.93 narrowly missed expectations. The company declared a quarterly dividend of $1.47, equivalent to a 0.6% annualized yield.
• Wall Street remains broadly positive, with a “Moderate Buy” consensus and an average price target of $1,059.07, despite shares recently trading below their 50-day and 200-day moving averages.

SummitTX Capital L.P. trimmed its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 67.2% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 10,395 shares of the retailer's stock after selling 21,320 shares during the period. SummitTX Capital L.P.'s holdings in Costco Wholesale were worth $10,358,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also bought and sold shares of the company. Lazard Asset Management LLC increased its stake in Costco Wholesale by 70.5% in the first quarter. Lazard Asset Management LLC now owns 180,870 shares of the retailer's stock valued at $180,224,000 after acquiring an additional 74,800 shares during the last quarter. Jessup Wealth Management Inc increased its stake in shares of Costco Wholesale by 184.3% in the 1st quarter. Jessup Wealth Management Inc now owns 10,974 shares of the retailer's stock valued at $10,935,000 after purchasing an additional 7,114 shares during the last quarter. Family Manage LLC raised its holdings in shares of Costco Wholesale by 32.6% during the 1st quarter. Family Manage LLC now owns 1,217 shares of the retailer's stock worth $1,213,000 after buying an additional 299 shares in the last quarter. Intelligence Driven Advisers LLC bought a new stake in shares of Costco Wholesale during the 1st quarter worth $233,000. Finally, Gateway Wealth Partners LLC grew its position in Costco Wholesale by 52.8% in the first quarter. Gateway Wealth Partners LLC now owns 7,468 shares of the retailer's stock valued at $7,442,000 after acquiring an additional 2,582 shares during the last quarter. Institutional investors own 68.48% of the company's stock.

Insider Buying and Selling at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares of the company's stock, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. 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 Price Performance

Shares of NASDAQ:COST opened at $935.03 on Monday. The firm has a market cap of $414.67 billion, a P/E ratio of 47.03, a P/E/G ratio of 4.52 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 business has a fifty day simple moving average of $965.91 and a 200 day simple moving average of $980.66. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share 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 analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period in the previous year, the company posted $4.28 EPS. Analysts predict that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Friday, July 24th will be paid a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Friday, July 24th. Costco Wholesale's dividend payout ratio is currently 29.58%.

More Costco Wholesale News

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

• Positive Sentiment: Record demand for Costco Gas is driving more store visits, which can support merchandise sales and membership renewals by increasing overall customer traffic. Costco Gas Demand Hits Record as Low Prices Drive Member Visits
• Positive Sentiment: Costco was highlighted as a stock that can hold up if inflation stays elevated, with its membership model and scale seen as a defensive advantage for investors. 2 Stocks Built to Thrive If Inflation Refuses to Fade (COST)
• Positive Sentiment: Analysts continue to view Costco favorably overall, with the company reported to have a “Moderate Buy” consensus recommendation. Costco Wholesale Corporation NASDAQ: COST Receives Consensus Recommendation of "Moderate Buy" from Analysts
• Neutral Sentiment: Some shoppers may be eligible for cash from Costco’s $14 million settlement in Washington, which is a consumer-relations issue but does not appear large enough to materially change the investment case. Some Costco shoppers could qualify for cash in settlement payout
• Neutral Sentiment: Short interest data showed 0 shares reported, offering no meaningful new signal on trading pressure or sentiment.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. Wells Fargo & Company increased their target price on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Thursday, April 9th. BTIG Research reaffirmed a "buy" rating and set a $1,125.00 target price on shares of Costco Wholesale in a research note on Friday, May 29th. Mizuho set a $1,100.00 price target on Costco Wholesale in a research note on Monday, June 1st. Oppenheimer raised their price objective on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a report on Tuesday, May 19th. Finally, HC Wainwright reiterated a "buy" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Twenty-two equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $1,059.07.

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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