TFR Capital LLC. Reduces Stock Holdings in Costco Wholesale Corporation $COST

Key Points

• TFR Capital LLC cut its Costco stake by 28.2% in the first quarter, selling 1,788 shares and ending with 4,550 shares worth about $4.53 million.
• Institutional ownership of Costco remains high, with hedge funds and other investors holding 68.48% of the company’s stock, and several large funds recently increased positions significantly.
• Analysts remain largely positive on Costco despite its premium valuation: the stock has a Moderate Buy consensus rating with an average price target of about $1,059, while Costco also reported slightly missed EPS but beat revenue expectations in its latest quarter.

TFR Capital LLC. lessened its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 28.2% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 4,550 shares of the retailer's stock after selling 1,788 shares during the period. Costco Wholesale makes up about 1.4% of TFR Capital LLC.'s portfolio, making the stock its 19th biggest position. TFR Capital LLC.'s holdings in Costco Wholesale were worth $4,534,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Diamant Asset Management Inc. increased its position in shares of Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after acquiring an additional 6,720,130 shares during the period. Norges Bank acquired a new stake in Costco Wholesale during the 4th quarter worth about $5,195,415,000. Corient Private Wealth LLC lifted its position in Costco Wholesale by 838.9% during the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock worth $5,282,182,000 after acquiring an additional 5,472,968 shares during the period. Cardano Risk Management B.V. grew its stake in Costco Wholesale by 907.1% during the 4th quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer's stock valued at $1,539,346,000 after purchasing an additional 1,607,833 shares during the last quarter. Finally, Assenagon Asset Management S.A. grew its stake in Costco Wholesale by 1,586.8% during the 4th quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer's stock valued at $980,857,000 after purchasing an additional 1,070,005 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on COST shares. Citigroup started coverage on Costco Wholesale in a research note on Thursday, June 18th. They issued a "neutral" rating and a $1,020.00 price objective for the company. Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Royal Bank Of Canada initiated coverage on shares of Costco Wholesale in a research note on Monday. They issued a "sector perform" rating and a $1,000.00 price objective on the stock. The Goldman Sachs Group boosted their target price on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Finally, Deutsche Bank Aktiengesellschaft increased their price target on Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Costco Wholesale presently has a consensus rating of "Moderate Buy" and an average target price of $1,059.07.

Costco Wholesale News Summary

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

• Positive Sentiment: RBC Capital described Costco as one of retail’s best stories and a top industry player, pointing to its unique membership model, market share gains, and resilient consumer demand. Several articles highlighted that the stock was gaining on the analyst optimism, which helped support the shares. Article: Costco Stock (COST) Gains As Analyst Says It Is ‘One of the Best Stories in Retail’
• Positive Sentiment: Commentary on Costco’s June sales and digital growth suggested the retailer is still seeing strong demand, with its low-price, high-volume model continuing to attract shoppers and defend market share. Article: Are Costco's June Sales Enough to Defend Its Rich Valuation?
• Neutral Sentiment: Multiple pieces compared Costco with Walmart, generally framing COST as an elite defensive retailer but noting that investors are weighing Costco’s premium valuation against its growth durability. Article: Costco vs. Walmart: 1 Dividend-Paying Retail Giant Stands Above the Other
• Neutral Sentiment: Stories about Costco’s cultural popularity and employee success reinforced the brand’s strength and consumer appeal, but they are not likely to materially move the stock on their own. Article: The One Thing Everyone in America Can Agree On? Costco
• Negative Sentiment: Costco is facing a proposed class-action lawsuit over an allegedly contaminated protein powder product, which could raise concerns about quality controls and consumer trust if the case gains traction. Article: Costco (COST) Faces Protein Powder Heavy Metals Lawsuit And A Test Of Trust
• Negative Sentiment: Analysts also flagged that Costco’s rich valuation and slowing comparable-sales growth could limit further upside, even though the business remains fundamentally strong. Article: Are Costco's June Sales Enough to Defend Its Rich Valuation?

Costco Wholesale Stock Performance

Shares of NASDAQ COST opened at $926.43 on Tuesday. The company has a market capitalization of $410.85 billion, a PE ratio of 46.60, a price-to-earnings-growth ratio of 4.44 and a beta of 0.88. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The company's fifty day moving average price is $981.90 and its 200 day moving average price is $976.64. 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 issued its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same quarter last year, the company posted $4.28 EPS. On average, research analysts predict that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Friday, July 24th will be issued a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Friday, July 24th. Costco Wholesale's dividend payout ratio (DPR) is presently 29.58%.

Insider Buying and Selling

In other news, Director Kenneth D. Denman sold 885 shares of the business's stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 0.10% of the company's stock.

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.

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