Western Wealth Management LLC Acquires 3,333 Shares of Costco Wholesale Corporation $COST

Key Points

• Western Wealth Management increased its Costco stake by 21% in the first quarter, purchasing 3,333 additional shares for a total of 19,195 shares valued at approximately $19.1 million. Institutional investors collectively own 68.48% of Costco.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $1,059.53; 22 analysts rate the stock a Buy, 11 a Hold and one a Sell.
• Costco reported quarterly revenue of $70.53 billion and EPS of $4.93, narrowly missing estimates, while shares traded near $944.32 and carried a high valuation of about 47.5 times earnings. The company also paid a quarterly dividend of $1.47 per share, yielding approximately 0.6%.

Western Wealth Management LLC boosted its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 21.0% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 19,195 shares of the retailer's stock after purchasing an additional 3,333 shares during the period. Costco Wholesale makes up 0.7% of Western Wealth Management LLC's portfolio, making the stock its 23rd largest position. Western Wealth Management LLC's holdings in Costco Wholesale were worth $19,126,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in COST. World Investment Advisors boosted its holdings in Costco Wholesale by 8.4% in the fourth quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock valued at $15,835,000 after acquiring an additional 1,560 shares in the last quarter. Teacher Retirement System of Texas lifted its position in shares of Costco Wholesale by 24.5% in the 4th quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer's stock worth $121,098,000 after purchasing an additional 27,625 shares during the period. Perryman Financial Advisory Inc. AD bought a new stake in shares of Costco Wholesale during the 4th quarter valued at about $9,300,000. Oak Ridge Investments LLC boosted its stake in shares of Costco Wholesale by 7.3% during the 4th quarter. Oak Ridge Investments LLC now owns 22,117 shares of the retailer's stock valued at $19,072,000 after purchasing an additional 1,496 shares in the last quarter. Finally, Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust purchased a new position in shares of Costco Wholesale during the fourth quarter valued at about $5,813,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on COST shares. Sanford C. Bernstein increased their price target on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research note on Friday, May 29th. Citigroup assumed coverage on Costco Wholesale in a report on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 target price on the stock. BTIG Research reissued a "buy" rating and issued a $1,125.00 target price on shares of Costco Wholesale in a research report on Friday, May 29th. UBS Group lifted their price target on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a research report on Wednesday, May 20th. Finally, DA Davidson reaffirmed a "neutral" rating and issued a $1,000.00 price target on shares of Costco Wholesale in a research note on Thursday, June 4th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $1,059.53.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: July sales remained very strong. Costco reported July net sales of $23.12 billion, up 10.7% year over year. Comparable sales increased 8.9% globally and 10.3% in the U.S., while digital sales and membership activity remained healthy. The results suggest Costco continues to attract value-conscious consumers and could support earnings expectations. Costco Delivered Another Strong Sales Print in July
• Positive Sentiment: Expansion continues. Planned warehouses, including a possible additional North Texas location and a Kent-area project expected to create about 250 jobs, point to continued investment in Costco’s store footprint. The initiatives are a modest long-term growth positive, although they are unlikely to materially affect near-term results. Costco May Add Another Store in North Texas
• Neutral Sentiment: Earnings expectations are the next major catalyst. Retail-sector coverage describes COST as consolidating ahead of earnings. Investors will focus on comparable sales, membership trends, margins and whether July’s growth can continue through the remainder of the year. Reported short interest of zero shares appears inconsistent with normal market data and provides no meaningful trading signal. Retail Stocks Forecasts
• Negative Sentiment: Valuation is limiting upside. Analysts acknowledge Costco’s resilient demand, membership strength and high-quality business model, but question whether its premium valuation already discounts much of the good news. With a trailing P/E near 47.5, even solid results may not be enough if growth slows or management guidance disappoints. Are Costco’s July Sales Solid Enough to Justify Its Premium Valuation?

Insider Buying and Selling

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the business's stock in a transaction 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 sale, the director directly owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.10% of the company's stock.

Costco Wholesale Price Performance

Shares of COST opened at $944.32 on Wednesday. The stock has a market cap of $418.79 billion, a PE ratio of 47.50, a price-to-earnings-growth ratio of 4.53 and a beta of 0.87. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The firm's 50-day simple moving average is $950.45 and its two-hundred day simple moving average is $981.77.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate 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 analysts' expectations of $70.12 billion. During the same quarter in the previous year, the business posted $4.28 earnings per share. Analysts anticipate that Costco Wholesale Corporation will post 20.42 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were paid a dividend of $1.47 per share. The ex-dividend date was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's payout ratio is presently 29.58%.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source