Urban Wealth Management LLC Purchases New Holdings in Costco Wholesale Corporation $COST

Key Points

• Urban Wealth Management LLC bought a new position in Costco during Q4—1,733 shares worth about $1.49M, roughly 1.4% of its portfolio and its 17th largest holding.
• Several large institutions materially increased stakes—most notably Assenagon (+1,586.8% to 1,137,436 shares) and Amundi (+45% to 3,176,606 shares)—and institutional investors now own about 68.48% of Costco.
• Costco reported quarterly EPS of $4.58 (slightly above estimates) with revenue up 9.2% YoY, and the company raised its quarterly dividend to $1.47 (annualized $5.88, ~0.6% yield).

Urban Wealth Management LLC bought a new position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 1,733 shares of the retailer's stock, valued at approximately $1,494,000. Costco Wholesale makes up about 1.4% of Urban Wealth Management LLC's portfolio, making the stock its 17th largest holding.

A number of other hedge funds have also added to or reduced their stakes in COST. Assenagon Asset Management S.A. grew its stake in Costco Wholesale by 1,586.8% in the 4th quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer's stock worth $980,857,000 after acquiring an additional 1,070,005 shares in the last quarter. Amundi grew its stake in Costco Wholesale by 45.0% in the 3rd quarter. Amundi now owns 3,176,606 shares of the retailer's stock worth $2,893,697,000 after acquiring an additional 986,182 shares in the last quarter. Voloridge Investment Management LLC grew its stake in Costco Wholesale by 112.2% in the 3rd quarter. Voloridge Investment Management LLC now owns 477,425 shares of the retailer's stock worth $441,919,000 after acquiring an additional 252,453 shares in the last quarter. Worldquant Millennium Advisors LLC grew its stake in Costco Wholesale by 638.7% in the 2nd quarter. Worldquant Millennium Advisors LLC now owns 227,310 shares of the retailer's stock worth $225,023,000 after acquiring an additional 196,537 shares in the last quarter. Finally, CIBC Bancorp USA Inc. bought a new position in Costco Wholesale in the 3rd quarter worth about $158,189,000. 68.48% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In related news, EVP Claudine Adamo sold 730 shares of the stock in a transaction that occurred on 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 completion of the sale, the executive vice president owned 6,121 shares of the company's stock, valued at $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.10% of the stock is owned by insiders.

Costco Wholesale Trading Down 1.3%

NASDAQ:COST opened at $998.01 on Tuesday. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,067.08. The firm has a 50 day moving average of $996.71 and a 200 day moving average of $948.66. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The stock has a market capitalization of $442.77 billion, a price-to-earnings ratio of 51.90, a PEG ratio of 4.98 and a beta of 0.99.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its earnings results on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The company had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. During the same quarter in the prior year, the company posted $4.02 earnings per share. Costco Wholesale's revenue for the quarter was up 9.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that Costco Wholesale Corporation will post 20.31 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be given a dividend of $1.47 per share. The ex-dividend date of this dividend is Friday, May 1st. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's dividend payout ratio is currently 30.58%.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Mizuho upped their target price on shares of Costco Wholesale from $1,065.00 to $1,100.00 and gave the stock an "outperform" rating in a research note on Thursday, April 16th. Gordon Haskett upped their target price on shares of Costco Wholesale from $1,000.00 to $1,100.00 in a research note on Tuesday, February 3rd. Deutsche Bank Aktiengesellschaft upped their target price on shares of Costco Wholesale from $1,103.00 to $1,104.00 and gave the stock a "buy" rating in a research note on Thursday, April 9th. BTIG Research reiterated a "buy" rating and set a $1,115.00 price objective on shares of Costco Wholesale in a research note on Thursday, March 5th. Finally, Oppenheimer increased their price objective on shares of Costco Wholesale from $1,050.00 to $1,100.00 and gave the company an "outperform" rating in a research note on Thursday, February 5th. Twenty-two analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $1,045.97.

Costco Wholesale Company 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.

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.