Tandem Investment Advisors Inc. Sells 7,379 Shares of Costco Wholesale Corporation $COST

Key Points

• Tandem Investment Advisors cut its Costco position by 14.5% in the first quarter, selling 7,379 shares and leaving it with 43,412 shares valued at about $43.3 million.
• Costco’s latest earnings were mixed: it posted $4.93 EPS, just below estimates, while revenue of $70.53 billion came in above expectations. Analysts still forecast about $20.39 EPS for the current fiscal year.
• The stock remains expensive by many measures, with shares recently trading around $940.87 and a PE ratio of 47.33; recent commentary also highlighted cooling comparable sales and valuation concerns even as Costco continues to pay a quarterly dividend of $1.47.

Tandem Investment Advisors Inc. lowered its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 14.5% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 43,412 shares of the retailer's stock after selling 7,379 shares during the quarter. Costco Wholesale accounts for about 2.1% of Tandem Investment Advisors Inc.'s investment portfolio, making the stock its 23rd largest position. Tandem Investment Advisors Inc.'s holdings in Costco Wholesale were worth $43,257,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of COST. SEB Asset Management AB bought a new stake in Costco Wholesale during the first quarter valued at about $17,647,000. Swiss National Bank lifted its position in shares of Costco Wholesale by 7.3% in the first quarter. Swiss National Bank now owns 1,302,660 shares of the retailer's stock valued at $1,298,010,000 after acquiring an additional 88,200 shares in the last quarter. World Equity Group Inc. boosted its stake in shares of Costco Wholesale by 17.6% in the first quarter. World Equity Group Inc. now owns 955 shares of the retailer's stock worth $951,000 after acquiring an additional 143 shares during the period. AIA Group Ltd boosted its stake in shares of Costco Wholesale by 2.0% in the first quarter. AIA Group Ltd now owns 26,816 shares of the retailer's stock worth $26,720,000 after acquiring an additional 517 shares during the period. Finally, Legacy Wealth Advisors LLC purchased a new stake in shares of Costco Wholesale during the first quarter worth about $402,000. 68.48% of the stock is currently owned by institutional investors.

Costco Wholesale News Summary

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

• Positive Sentiment: Erste Group Bank raised its FY2026 EPS estimate for Costco to $20.52 from $20.49, slightly above the Street consensus of $20.38, suggesting analysts still see modest earnings upside. Earnings forecast boost article
• Positive Sentiment: Costco remains a favorite dividend name, with its next ex-dividend date set for July 24, which may attract income-focused investors ahead of the payout. Dividend article
• Neutral Sentiment: A profile of a longtime Costco cashier who became a millionaire highlights the company’s employee retention and compensation culture, but it is unlikely to materially affect near-term fundamentals. Employee profile article
• Neutral Sentiment: Several local news items about new warehouses, gas stations, and remodels point to ongoing store expansion and reinvestment, but they are not major stock-moving catalysts by themselves.
• Negative Sentiment: MarketBeat said Costco’s June sales showed cooling comparable sales and weak international results, keeping the stock in “neutral” territory despite its premium valuation. Cooling comp sales article
• Negative Sentiment: Additional commentary from Zacks and Yahoo Finance argued Costco shares still look expensive after a strong multi-year run, reinforcing valuation concerns that can weigh on the stock. Valuation debate article

Insiders Place Their Bets

In related news, Director Kenneth D. Denman sold 885 shares of the company's 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 sale, the director owned 4,779 shares of the company's stock, valued at $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale Stock Performance

NASDAQ COST opened at $940.87 on Friday. The stock has a market capitalization of $417.26 billion, a PE ratio of 47.33, a P/E/G ratio of 4.56 and a beta of 0.88. The business has a 50 day simple moving average of $975.73 and a two-hundred day simple moving average of $977.54. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). The firm had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same period in the previous year, the firm earned $4.28 EPS. On average, research analysts predict that Costco Wholesale Corporation will post 20.39 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

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

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. Weiss Ratings downgraded Costco Wholesale from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, June 23rd. Wells Fargo & Company increased their price objective on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the company an "equal weight" rating in a report on Thursday, April 9th. Citigroup began coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 price objective on the stock. Royal Bank Of Canada assumed coverage on shares of Costco Wholesale in a research report on Monday, July 13th. They set a "sector perform" rating and a $1,000.00 target price for the company. Finally, Mizuho set a $1,100.00 target price on shares of Costco Wholesale in a research note on Monday, June 1st. Twenty-two analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $1,059.07.

About Costco Wholesale

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.

Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.