Vestor Capital LLC Trims Position in Costco Wholesale Corporation $COST

Key Points

• Vestor Capital cut its Costco position by 99.9% in the first quarter, selling 969,823 shares and retaining just 1,017 shares worth approximately $1.0 million.
• Other major institutions generally increased their holdings, and institutional investors collectively own 68.48% of Costco. Analysts maintain a “Moderate Buy” consensus with an average price target of $1,059.07.
• Costco’s revenue exceeded quarterly expectations, but earnings per share fell slightly short; shares traded near $955 with a demanding P/E ratio of 48.05. The company also declared a quarterly dividend of $1.47 per share, yielding about 0.6%.

Vestor Capital LLC lowered its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 99.9% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,017 shares of the retailer's stock after selling 969,823 shares during the period. Vestor Capital LLC's holdings in Costco Wholesale were worth $1,013,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. boosted its stake in Costco Wholesale by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer's stock worth $37,615,889,000 after buying an additional 165,349 shares during the last quarter. Geode Capital Management LLC grew its holdings in Costco Wholesale by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer's stock valued at $8,919,573,000 after buying an additional 26,690 shares during the period. Morgan Stanley increased its stake in shares of Costco Wholesale by 1.1% during the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer's stock valued at $8,212,433,000 after acquiring an additional 107,775 shares during the last quarter. Bank of America Corp DE increased its stake in shares of Costco Wholesale by 11.5% during the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock valued at $7,488,203,000 after acquiring an additional 773,651 shares during the last quarter. Finally, Diamant Asset Management Inc. lifted its holdings in shares of Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock worth $672,690,000 after acquiring an additional 6,720,130 shares during the period. Hedge funds and other institutional investors own 68.48% of the company's stock.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco is reportedly testing a new gasoline-sales strategy that could expand fuel-related revenue and potentially make gas stations a more meaningful contributor to the company’s business model. The long-term opportunity could support investor interest if the experiment improves traffic, margins, or membership economics. Costco: A New Experiment With Gasoline Sales Could Fundamentally Transform The Company
• Positive Sentiment: Costco continues to receive favorable momentum coverage, supported by its loyal membership base, resilient sales, and long-term earnings and dividend-growth record. A new hydration-product partnership with Coco5 also gives the retailer another branded product aimed at health-conscious shoppers. Here's Why Costco Is a Strong Momentum Stock
• Neutral Sentiment: The Federal Reserve held interest rates at 3.5%-3.75%. Stable rates avoid an immediate financing shock, but elevated borrowing costs can limit consumer spending and keep pressure on richly valued retail stocks. Costco’s valuation remains demanding, with a reported forward earnings multiple near 48 and a PEG ratio above 4.
• Neutral Sentiment: Recent comparisons with Walmart frame Costco as a high-quality retailer with strong customer loyalty and digital growth, but investors must balance those strengths against its higher valuation and expectations for continued execution.
• Negative Sentiment: Costco agreed to a $14 million settlement involving allegations that promotional emails sent to Washington shoppers used misleading expiration language. Costco denies wrongdoing, but the settlement may create reputational and compliance concerns. Costco’s $14 Million Email Settlement
• Negative Sentiment: An animal-welfare investigation alleging severe mistreatment and biosecurity failures at an organic chicken supplier linked to Costco could increase scrutiny of the company’s supply-chain oversight and create potential legal or reputational costs.
• Negative Sentiment: Costco’s reported quarterly earnings slightly missed consensus estimates, despite revenue exceeding expectations. Combined with its elevated valuation, even modest earnings disappointments can weigh on the stock.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on COST shares. BTIG Research restated a "buy" rating and issued a $1,125.00 target price on shares of Costco Wholesale in a report on Friday, May 29th. Truist Financial lifted their price target on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a report on Friday, May 29th. JPMorgan Chase & Co. lowered their price objective on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating for the company in a research note on Thursday, July 9th. Telsey Advisory Group upped their price objective on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an "outperform" rating in a report on Thursday, April 9th. Finally, DA Davidson reaffirmed a "neutral" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a research report on Thursday, June 4th. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Costco Wholesale presently has an average rating of "Moderate Buy" and a consensus target price of $1,059.07.

Insider Buying and Selling at Costco Wholesale

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 completion of the sale, the director directly owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.10% of the company's stock.

Costco Wholesale Stock Down 1.9%

COST opened at $955.17 on Friday. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The firm has a 50 day moving average price of $956.95 and a 200 day moving average price of $982.32. 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 has a market cap of $423.60 billion, a PE ratio of 48.05, a price-to-earnings-growth ratio of 4.71 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results 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 net margin of 3.01% and a return on equity of 28.04%. The business had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same period last year, the firm earned $4.28 earnings per share. Sell-side analysts expect that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Announces Dividend

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

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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