Ocean Capital Management LLC trimmed its holdings in Costco Wholesale Co. (NASDAQ:COST) by 2.8% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 49,606 shares of the retailer’s stock after selling 1,453 shares during the period. Costco Wholesale accounts for about 10.8% of Ocean Capital Management LLC’s portfolio, making the stock its 2nd biggest holding. Ocean Capital Management LLC’s holdings in Costco Wholesale were worth $13,109,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds have also added to or reduced their stakes in COST. Horan Capital Advisors LLC. acquired a new stake in Costco Wholesale during the 1st quarter worth approximately $26,000. Canton Hathaway LLC lifted its holdings in Costco Wholesale by 41.0% during the 2nd quarter. Canton Hathaway LLC now owns 141 shares of the retailer’s stock worth $37,000 after purchasing an additional 41 shares during the last quarter. Thor Advisors LLC bought a new position in Costco Wholesale during the 1st quarter worth $35,000. C J Advisory Inc bought a new position in Costco Wholesale during the 1st quarter worth $36,000. Finally, JNBA Financial Advisors increased its stake in Costco Wholesale by 484.6% during the 1st quarter. JNBA Financial Advisors now owns 152 shares of the retailer’s stock worth $37,000 after acquiring an additional 126 shares during the period. 71.20% of the stock is owned by institutional investors.
Shares of COST traded up $2.52 during midday trading on Thursday, hitting $270.67. The company’s stock had a trading volume of 71,170 shares, compared to its average volume of 1,786,482. Costco Wholesale Co. has a one year low of $189.51 and a one year high of $284.31. The company’s fifty day moving average price is $274.09. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.98 and a quick ratio of 0.48. The company has a market cap of $119.32 billion, a PE ratio of 39.54, a price-to-earnings-growth ratio of 3.80 and a beta of 0.95.
Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings results on Thursday, May 30th. The retailer reported $1.89 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.83 by $0.06. Costco Wholesale had a return on equity of 25.03% and a net margin of 2.41%. The company had revenue of $34.74 billion for the quarter, compared to analyst estimates of $34.72 billion. During the same quarter last year, the company posted $1.70 EPS. The company’s revenue for the quarter was up 7.4% compared to the same quarter last year. As a group, equities analysts forecast that Costco Wholesale Co. will post 8.04 EPS for the current year.
Costco Wholesale announced that its board has authorized a stock buyback plan on Friday, April 26th that permits the company to buyback $4.00 billion in outstanding shares. This buyback authorization permits the retailer to reacquire up to 3.8% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its stock is undervalued.
The firm also recently declared a quarterly dividend, which will be paid on Friday, September 13th. Stockholders of record on Friday, August 30th will be paid a $0.65 dividend. The ex-dividend date is Thursday, August 29th. This represents a $2.60 annualized dividend and a dividend yield of 0.96%. Costco Wholesale’s payout ratio is 38.07%.
In related news, insider James C. Klauer sold 5,000 shares of the firm’s stock in a transaction on Friday, June 7th. The stock was sold at an average price of $255.53, for a total transaction of $1,277,650.00. Following the sale, the insider now owns 48,310 shares of the company’s stock, valued at approximately $12,344,654.30. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP James P. Murphy sold 10,000 shares of the firm’s stock in a transaction on Thursday, June 20th. The shares were sold at an average price of $265.85, for a total value of $2,658,500.00. Following the sale, the vice president now directly owns 45,100 shares in the company, valued at approximately $11,989,835. The disclosure for this sale can be found here. In the last quarter, insiders sold 28,136 shares of company stock worth $7,380,374. Corporate insiders own 0.21% of the company’s stock.
A number of research firms have commented on COST. Deutsche Bank set a $252.00 price objective on Costco Wholesale and gave the stock a “hold” rating in a research note on Monday, July 15th. Nomura raised their price objective on Costco Wholesale from $235.00 to $256.00 and gave the stock a “neutral” rating in a research note on Thursday, July 11th. Evercore ISI restated a “buy” rating on shares of Costco Wholesale in a research note on Sunday. Goldman Sachs Group began coverage on Costco Wholesale in a research note on Thursday, July 11th. They set a “buy” rating and a $290.00 price objective on the stock. Finally, Gordon Haskett lowered Costco Wholesale from an “accumulate” rating to a “hold” rating and set a $244.90 price objective on the stock. in a research note on Wednesday, May 29th. They noted that the move was a valuation call. Seven investment analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average price target of $266.04.
Costco Wholesale Profile
Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. It offers branded and private-label products in a range of merchandise categories. The company provides dry and packaged foods, and groceries; snack foods, candies, alcoholic and nonalcoholic beverages, and cleaning supplies; appliances, electronics, health and beauty aids, hardware, and garden and patio products; meat, bakery, deli, and produces; and apparel and small appliances.
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