Watershed Private Wealth LLC Grows Position in Costco Wholesale Corporation $COST

Key Points

• Watershed Private Wealth LLC increased its Costco stake by 425.0% in Q4, buying an additional 1,054 shares to hold 1,302 shares valued at about $1.122 million.
• Costco raised membership fees for the first time in seven years and posted a quarterly beat (EPS $4.58 vs $4.55; revenue $69.6B vs $68.96B), while analysts maintain a consensus "Moderate Buy" with an average price target near $1,043.13.

Watershed Private Wealth LLC lifted its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 425.0% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,302 shares of the retailer's stock after buying an additional 1,054 shares during the quarter. Watershed Private Wealth LLC's holdings in Costco Wholesale were worth $1,122,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Hurley Capital LLC increased its position in shares of Costco Wholesale by 120.0% in the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after purchasing an additional 18 shares during the last quarter. Abich Financial Wealth Management LLC bought a new position in shares of Costco Wholesale in the third quarter worth approximately $34,000. Collier Financial bought a new position in shares of Costco Wholesale in the third quarter worth approximately $35,000. AXS Investments LLC bought a new position in shares of Costco Wholesale in the third quarter worth approximately $36,000. Finally, Imprint Wealth LLC bought a new position in shares of Costco Wholesale in the third quarter worth approximately $36,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Key Costco Wholesale News

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

• Positive Sentiment: Costco raised membership fees for the first time in seven years, which should boost stable, high-margin subscription revenue and is supported by strong renewal rates that preserve profitability. Costco Raised Membership Fees for the First Time in 7 Years. Here's What Investors Learned From It.
• Positive Sentiment: Analyst and media coverage highlights Costco as one of the top long-term compounders alongside Visa and Intuitive Surgical, reinforcing positive sentiment about durable growth and competitive advantages. These 3 Stocks Have Crushed the Market, and the Next 10 Years Could Be Even Better
• Positive Sentiment: Costco's success in Japan is cited as evidence the membership model and merchandising mix can win in difficult international markets, supporting longer-term store growth and margins abroad. Costco Co-Founder Once Said Japanese Love This Product Because It 'Smells Like America'
• Positive Sentiment: Rising gas prices are driving consumer interest in Costco's gas stations and its co-branded credit card, which can increase store traffic, membership stickiness, and interchange revenue. Soaring gas prices convinced me to switch over to Costco's credit card
• Neutral Sentiment: DA Davidson reiterated a Neutral rating on COST, signaling no near-term analyst-driven upgrade; that keeps upside expectations muted until clearer catalysts emerge. Costco Wholesale's (COST) Neutral Rating Reiterated at DA Davidson
• Neutral Sentiment: Coverage on whether a membership is “worth it just for gas” highlights consumer cost-savings benefits but doesn’t materially change fundamentals; it supports demand but is more anecdotal than catalytic. Is a Costco membership worth it just for gas?
• Negative Sentiment: Some analysts and articles continue to flag Costco's high valuation; one piece lists Costco among overvalued consumer stocks, which could cap near-term gains if broader market sentiment shifts. 2 Overvalued Consumer Stocks Investors Should Buy if a Massive Pullback Occurs

Insider Buying and Selling

In other news, EVP James C. Klauer sold 1,500 shares of the stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $939.00, for a total transaction of $1,408,500.00. Following the completion of the sale, the executive vice president owned 44,837 shares of the company's stock, valued at approximately $42,101,943. This represents a 3.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Claudine Adamo sold 730 shares of the firm's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total value of $732,204.60. Following the completion of the sale, the executive vice president directly owned 6,121 shares of the company's stock, valued at $6,139,485.42. The trade was a 10.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 3,538 shares of company stock worth $3,416,416. 0.10% of the stock is owned by company insiders.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Rothschild & Co Redburn upped their price objective on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 17th. Raymond James Financial increased their price target on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an "outperform" rating in a research report on Friday, March 6th. Sanford C. Bernstein reiterated an "outperform" rating and set a $1,155.00 price target on shares of Costco Wholesale in a research report on Monday, February 9th. Robert W. Baird set a $1,100.00 price target on shares of Costco Wholesale in a research report on Thursday, February 5th. Finally, BMO Capital Markets increased their price target on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the company an "outperform" rating in a research report on Friday, March 6th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $1,043.13.

Costco Wholesale Stock Performance

NASDAQ:COST opened at $998.47 on Monday. The firm has a market cap of $442.97 billion, a PE ratio of 51.92, a price-to-earnings-growth ratio of 4.92 and a beta of 0.99. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,067.08. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The business has a 50 day moving average price of $995.50 and a 200-day moving average price of $942.86.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings data on Thursday, March 5th. The retailer reported $4.58 earnings per share for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. The firm had revenue of $69.60 billion during the quarter, compared to analyst estimates of $68.96 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The business's quarterly revenue was up 9.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $4.02 earnings per share. Equities research analysts predict that Costco Wholesale Corporation will post 18.03 earnings per share for the current year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Friday, January 30th were paid a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend was Friday, January 30th. Costco Wholesale's dividend payout ratio is 27.04%.

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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