Pincus Capital Management LP Invests $3.31 Million in Costco Wholesale Corporation $COST

Pincus Capital Management LP bought a new position in shares of Costco Wholesale Corporation (NASDAQ:COST) during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 3,835 shares of the retailer’s stock, valued at approximately $3,307,000. Costco Wholesale accounts for approximately 2.2% of Pincus Capital Management LP’s portfolio, making the stock its 12th biggest holding.

A number of other institutional investors have also modified their holdings of COST. Hurley Capital LLC increased its position in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer’s stock worth $31,000 after acquiring an additional 18 shares during the period. Entrust Financial LLC purchased a new position in shares of Costco Wholesale during the fourth quarter worth approximately $31,000. Joseph Group Capital Management purchased a new position in shares of Costco Wholesale during the fourth quarter worth approximately $33,000. Abich Financial Wealth Management LLC purchased a new position in shares of Costco Wholesale during the third quarter worth approximately $34,000. Finally, Collier Financial purchased a new position in shares of Costco Wholesale during the third quarter worth approximately $35,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the firm’s stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the completion of the sale, the executive vice president directly owned 6,121 shares in the company, valued at $6,139,485.42. This trade represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is currently owned by company insiders.

Key Costco Wholesale News

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

• Positive Sentiment: Analysts and bulls continue to point to Costco’s strong long-term drivers, including value-focused pricing, membership growth, solid traffic, and digital expansion, with Jefferies and DA Davidson both highlighting the company’s durable business model and reinforcing constructive outlooks. Costco’s value strategy, membership growth support outlook after strong quarter, says Jefferies
• Positive Sentiment: Costco’s fiscal Q3 showed continued sales strength, including 9.8% comparable sales growth and 12% revenue growth, while reports also noted record gas sales and strong protein-related demand, suggesting healthy consumer traffic and resilient basket sizes. Is Costco’s 9.8% Comparable Sales Growth Stronger Than It Looks?
• Positive Sentiment: Costco is benefiting from shifting consumer demand for protein-heavy foods and drinks, which could support category growth as GLP-1 usage and wellness trends boost protein spending. Costco is selling wild amounts of protein as whey shortages loom
• Neutral Sentiment: Several new-store and local development stories, including plans for a new Costco in Irondale and efforts to preserve a Kansas City location, are supportive of the growth narrative but are not immediate stock catalysts. New Costco coming to Irondale. Here’s what to know
• Negative Sentiment: The main reason the stock is falling is that investors appear unconvinced the strong operating results justify Costco’s premium valuation, especially after the shares slid to a three-month low following earnings. Costco (COST) Stock Drops 16% From Peak — Should You Buy the Dip?
• Negative Sentiment: Despite solid revenue growth, multiple articles note that the stock did not get a post-earnings boost, reflecting concern about slowing membership growth, margin sensitivity, and whether the recent pullback is enough to make the shares attractive. Why Even 12% Revenue Growth in Q3 Wasn’t Enough to Give Costco’s Stock a Boost

Costco Wholesale Price Performance

Shares of COST opened at $946.11 on Tuesday. The company has a market cap of $419.74 billion, a price-to-earnings ratio of 47.59, a price-to-earnings-growth ratio of 4.70 and a beta of 0.88. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The company has a 50 day moving average of $1,007.23 and a two-hundred day moving average of $963.04.

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). The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.72%. During the same quarter last year, the business earned $4.28 earnings per share. As a group, analysts predict that Costco Wholesale Corporation will post 20.36 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were paid a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. This is a positive change from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date was Friday, May 1st. Costco Wholesale’s payout ratio is 30.58%.

Analysts Set New Price Targets

A number of brokerages have recently commented on COST. TD Cowen reaffirmed a “buy” rating on shares of Costco Wholesale in a research report on Friday, March 6th. Oppenheimer raised their target price on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 19th. DA Davidson reiterated a “neutral” rating and set a $1,000.00 price objective on shares of Costco Wholesale in a research note on Friday. Raymond James Financial increased their price objective on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an “outperform” rating in a research note on Friday, March 6th. Finally, Citigroup reiterated a “neutral” rating on shares of Costco Wholesale in a research note on Friday, February 20th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Costco Wholesale currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,056.32.

Costco Wholesale Company 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.