Investment firm Freedom Day Solutions LLC has reduced its stake in Costco Wholesale Corporation (NASDAQ:COST) by 8.9% during the first quarter of this year, as reported in its latest filing with the Securities & Exchange Commission. The firm now holds 4,552 shares after selling 443 shares in the quarter, with these holdings representing approximately 1.3% of its total investment portfolio, making Costco its eleventh largest position.
As of the most recent SEC filing, Freedom Day Solutions LLC’s investment in Costco was valued at around $4,305,000. Other significant investors have also adjusted their positions in Costco recently. For instance, May Barnhard Investments LLC acquired a new stake worth $485,000 during the fourth quarter, while Brighton Jones LLC increased its holdings by 12.3%, bringing its total to 19,825 shares valued at $18,165,000 after purchasing an additional 2,172 shares.
Revolve Wealth Partners LLC also expanded its investment by 13.1%, now owning 1,123 shares worth $1,029,000. Similarly, Bank Pictet & Cie Europe AG significantly increased its holdings by 45.0%, owning 117,254 shares valued at $107,436,000. Additionally, Highview Capital Management LLC DE increased its position by 0.8%, owning 4,813 shares worth $4,410,000. Notably, institutional investors together hold approximately 68.48% of Costco’s shares.
Analyst Ratings and Stock Performance
Analysts have varied opinions on Costco’s stock. On April 4, Cfra Research upgraded Costco from a “hold” to a “moderate buy” rating. Following this, Mizuho initiated coverage on April 11 with a “neutral” rating and a price target of $975.00. The Telsey Advisory Group reiterated an “outperform” rating, setting a target price of $1,100.00.
On May 30, Truist Financial raised its price target from $995.00 to $1,042.00, maintaining a “hold” rating. That same day, Morgan Stanley increased its target from $1,150.00 to $1,225.00, giving the stock an “overweight” rating. Currently, nine analysts rate Costco with a “hold” and twenty-one with a “buy,” leading to a consensus rating of “Moderate Buy” with an average price target of $1,034.79, according to MarketBeat.com.
On the trading front, Costco shares opened at $970.17 on Friday. The company boasts a debt-to-equity ratio of 0.21, a quick ratio of 0.52, and a current ratio of 1.02. Over the past year, Costco’s stock reached a low of $793.00 and a high of $1,078.24. The company has a market capitalization of approximately $430.25 billion and a price-to-earnings ratio of 55.03.
Recent Earnings and Dividend Announcement
Costco recently reported its quarterly earnings on May 29, revealing earnings per share (EPS) of $4.28, exceeding analysts’ expectations of $4.24. The company achieved a net margin of 2.92% and a return on equity of 30.48%. Revenue for the quarter totaled $63.21 billion, surpassing projected figures of $62.93 billion, marking an 8.0% increase compared to the same quarter last year.
In addition to the earnings announcement, Costco declared a quarterly dividend of $1.30, paid on May 16. Shareholders of record as of May 2 received this dividend, which reflects an annualized rate of $5.20 and a yield of 0.54%, up from its previous quarterly dividend of $1.16. The current dividend payout ratio stands at 29.50%.
Recent insider trading activity includes the sale of 547 shares by Director Susan L. Decker on June 18, valued at approximately $536,060. Following this transaction, Decker retains 11,531 shares valued at around $11,300,380. Additionally, Executive Vice President Patrick J. Callans sold 3,000 shares on June 9 for around $3,008,310, now owning 58,543 shares worth approximately $58,705,164.
As Costco continues to navigate the retail landscape, these strategic investment shifts and operational metrics provide insight into its ongoing performance and market positioning.