Main Street Research LLC Sells 16,227 Shares of Costco Wholesale Corporation $COST

Main Street Research LLC reduced its stake in shares of Costco Wholesale Corporation (NASDAQ:COST) by 26.0% during the first quarter, Holdings Channel reports. The institutional investor owned 46,139 shares of the retailer’s stock after selling 16,227 shares during the period. Costco Wholesale comprises 2.7% of Main Street Research LLC’s holdings, making the stock its 13th biggest position. Main Street Research LLC’s holdings in Costco Wholesale were worth $45,974,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in the stock. FORA Capital LLC purchased a new position in Costco Wholesale in the 3rd quarter worth approximately $2,781,000. World Investment Advisors grew its holdings in Costco Wholesale by 8.4% during the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock valued at $15,835,000 after buying an additional 1,560 shares in the last quarter. Teacher Retirement System of Texas raised its position in shares of Costco Wholesale by 24.5% during the fourth quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer’s stock valued at $121,098,000 after buying an additional 27,625 shares during the last quarter. Curtis Advisory Group LLC lifted its holdings in shares of Costco Wholesale by 56.7% in the fourth quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer’s stock worth $3,911,000 after buying an additional 1,641 shares in the last quarter. Finally, Perryman Financial Advisory Inc. AD bought a new position in shares of Costco Wholesale during the fourth quarter worth $9,300,000. 68.48% of the stock is currently owned by institutional investors.

Costco Wholesale Stock Down 4.2%

NASDAQ COST opened at $912.97 on Friday. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The company has a fifty day moving average of $985.31 and a two-hundred day moving average of $975.67. The firm has a market capitalization of $404.88 billion, a price-to-earnings ratio of 45.92, a PEG ratio of 4.62 and a beta of 0.88. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50.

Costco Wholesale (NASDAQ:COST) last announced its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share 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 firm had revenue of $70.53 billion during the quarter, compared to analysts’ expectations of $70.12 billion. During the same period in the prior year, the company posted $4.28 EPS. On average, analysts predict that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Announces Dividend

The company also recently declared 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. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date is Friday, July 24th. Costco Wholesale’s dividend payout ratio is presently 29.58%.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Bank of America and other analysts reiterated bullish views, saying Costco’s value-focused model and affluent membership base should continue to support market share gains. Costco shares fall after June sales update, Bank of America remains bullish
• Positive Sentiment: Costco posted strong June net sales of $29.24 billion and continued to see robust digital and U.S. demand, which suggests the core business remains healthy. Costco Wholesale Corporation Reports June Sales Results and Announces Quarterly Cash Dividend
• Neutral Sentiment: Costco declared a quarterly dividend, which is supportive for income investors but unlikely to be a major near-term stock mover. Costco Wholesale Corporation Reports June Sales Results and Announces Quarterly Cash Dividend
• Negative Sentiment: A proposed class-action lawsuit alleging Costco’s protein powder contained toxic heavy metals could create legal and reputational overhang. Costco faces class-action lawsuit alleging protein powder was laced with toxic heavy metals

Insider Buying and Selling

In related news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction dated Tuesday, June 23rd. The shares were 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 $4,575,653.55. This represents a 15.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.10% of the company’s stock.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Wells Fargo & Company raised their target price on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the company an “equal weight” rating in a research note on Thursday, April 9th. TD Cowen reissued a “buy” rating and set a $1,175.00 price objective on shares of Costco Wholesale in a report on Wednesday, June 3rd. Telsey Advisory Group raised their price objective on Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an “outperform” rating in a research report on Thursday, April 9th. BTIG Research reaffirmed a “buy” rating and issued a $1,125.00 target price on shares of Costco Wholesale in a report on Friday, May 29th. Finally, JPMorgan Chase & Co. decreased their target price on Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating on the stock in a research report on Thursday. Twenty-two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $1,061.10.

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.