Motley Fool Wealth Management LLC trimmed its stake in shares of Costco Wholesale Co. (NASDAQ:COST) by 26.4% in the 1st quarter, Holdings Channel reports. The firm owned 19,910 shares of the retailer’s stock after selling 7,144 shares during the quarter. Motley Fool Wealth Management LLC’s holdings in Costco Wholesale were worth $4,821,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Horan Capital Advisors LLC. acquired a new position in Costco Wholesale in the 1st quarter worth about $26,000. ERTS Wealth Advisors LLC bought a new stake in shares of Costco Wholesale during the 4th quarter worth about $30,000. Arbor Wealth Management LLC bought a new stake in shares of Costco Wholesale during the 4th quarter worth about $33,000. PRW Wealth Management LLC bought a new stake in Costco Wholesale during the 4th quarter valued at approximately $36,000. Finally, C J Advisory Inc bought a new stake in Costco Wholesale during the 1st quarter valued at approximately $36,000. 71.14% of the stock is owned by institutional investors and hedge funds.
In other news, VP Patrick J. Callans sold 2,000 shares of the stock in a transaction that occurred on Friday, June 7th. The stock was sold at an average price of $252.15, for a total value of $504,300.00. Following the completion of the transaction, the vice president now directly owns 66,479 shares of the company’s stock, valued at approximately $16,762,679.85. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider James C. Klauer sold 5,000 shares of the stock in a transaction that occurred on Friday, June 7th. The stock was sold at an average price of $255.53, for a total value of $1,277,650.00. Following the completion of the transaction, the insider now directly owns 48,310 shares of the company’s stock, valued at $12,344,654.30. The disclosure for this sale can be found here. Insiders sold a total of 12,140 shares of company stock valued at $3,056,340 in the last quarter. Corporate insiders own 0.21% of the company’s stock.
Shares of COST stock opened at $257.23 on Thursday. The company has a quick ratio of 0.48, a current ratio of 0.98 and a debt-to-equity ratio of 0.32. Costco Wholesale Co. has a 12 month low of $189.51 and a 12 month high of $259.61. The company has a market capitalization of $113.07 billion, a price-to-earnings ratio of 37.66, a PEG ratio of 3.61 and a beta of 0.91.
Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings data on Thursday, May 30th. The retailer reported $1.89 EPS for the quarter, topping the Zacks’ 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 during the quarter, compared to the consensus estimate of $34.72 billion. During the same quarter last year, the company earned $1.70 EPS. The company’s quarterly revenue was up 7.4% on a year-over-year basis. On average, equities research analysts forecast that Costco Wholesale Co. will post 8.04 EPS for the current year.
Costco Wholesale declared that its Board of Directors has initiated a share buyback program on Friday, April 26th that authorizes the company to repurchase $4.00 billion in shares. This repurchase authorization authorizes the retailer to purchase up to 3.8% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its stock is undervalued.
The company also recently disclosed a quarterly dividend, which was paid on Friday, May 24th. Shareholders of record on Friday, May 10th were given a $0.65 dividend. The ex-dividend date of this dividend was Thursday, May 9th. This represents a $2.60 dividend on an annualized basis and a dividend yield of 1.01%. This is an increase from Costco Wholesale’s previous quarterly dividend of $0.57. Costco Wholesale’s dividend payout ratio (DPR) is currently 38.07%.
Several brokerages recently weighed in on COST. Zacks Investment Research upgraded Costco Wholesale from a “hold” rating to a “buy” rating and set a $272.00 target price for the company in a research note on Tuesday. Loop Capital increased their target price on Costco Wholesale from $260.00 to $265.00 and gave the company a “buy” rating in a research note on Monday, April 1st. Oppenheimer increased their target price on Costco Wholesale from $245.00 to $270.00 and gave the company an “outperform” rating in a research note on Wednesday, April 17th. BMO Capital Markets set a $275.00 target price on Costco Wholesale and gave the company a “buy” rating in a research note on Friday, May 31st. Finally, Telsey Advisory Group restated an “outperform” rating and set a $265.00 target price (up previously from $250.00) on shares of Costco Wholesale in a research note on Tuesday, April 9th. Seven analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. The company presently has a consensus rating of “Buy” and an average target price of $252.13.
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About Costco Wholesale
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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