Front Street Capital Management Inc. Sells 4,736 Shares of Costco Wholesale Corporation $COST

Front Street Capital Management Inc. decreased its position in shares of Costco Wholesale Corporation (NASDAQ:COSTFree Report) by 21.5% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 17,329 shares of the retailer’s stock after selling 4,736 shares during the period. Costco Wholesale makes up about 2.2% of Front Street Capital Management Inc.’s investment portfolio, making the stock its 17th largest position. Front Street Capital Management Inc.’s holdings in Costco Wholesale were worth $17,267,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in Costco Wholesale during the 4th quarter valued at about $27,000. Lifetime Wealth Management P.C. purchased a new stake in Costco Wholesale in the 4th quarter worth about $28,000. Mcguire Capital Advisors Inc. bought a new stake in Costco Wholesale in the fourth quarter worth about $28,000. Entrust Financial LLC purchased a new position in shares of Costco Wholesale during the fourth quarter valued at approximately $31,000. Finally, Joseph Group Capital Management bought a new position in shares of Costco Wholesale during the fourth quarter valued at approximately $33,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Costco Wholesale Stock Performance

Costco Wholesale stock opened at $955.17 on Friday. The company 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. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The company has a market capitalization of $423.60 billion, a PE ratio of 48.05, a P/E/G ratio of 4.71 and a beta of 0.88.

Costco Wholesale (NASDAQ:COSTGet Free Report) last announced its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) 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 firm had revenue of $70.53 billion during the quarter, compared to analysts’ expectations of $70.12 billion. During the same quarter in the previous year, the firm posted $4.28 EPS. As a group, equities analysts forecast that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Friday, July 24th will be given a dividend of $1.47 per share. The ex-dividend date of this dividend is 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 29.58%.

Key Costco Wholesale News

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.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. UBS Group increased their price target on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a “buy” rating in a report on Wednesday, May 20th. Truist Financial upped their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the company a “hold” rating in a research report on Friday, May 29th. HC Wainwright reaffirmed a “buy” rating on shares of Costco Wholesale in a research report on Monday, June 1st. Roth Capital increased their target price on Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a research note on Friday, May 29th. Finally, TD Cowen reiterated a “buy” rating and set a $1,175.00 target price on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Twenty-two equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Costco Wholesale presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,059.07.

Read Our Latest Report on COST

Insider Buying and Selling at Costco Wholesale

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the company’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 completion of the sale, the director directly owned 4,779 shares in the company, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.10% of the company’s stock.

Costco Wholesale Company Profile

(Free Report)

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.

Further Reading

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:COSTFree Report).

Institutional Ownership by Quarter for Costco Wholesale (NASDAQ:COST)

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