Dillon & Associates Increases Stake in Costco Wholesale

Dillon & Associates Inc. has increased its investment in Costco Wholesale Co. (NASDAQ:COST - Free Report) by 8.7% in the fourth quarter, as reported in its latest filing with the SEC. The firm now holds a total of 8,114 shares of the retailer after acquiring 647 additional shares during the quarter. Costco comprises approximately 1.0% of Dillon & Associates Inc.'s overall investment portfolio, marking it as the 28th largest investment for the fund. As of the most recent reporting period, the total value of Dillon & Associates Inc.'s holdings in Costco was $7,432,000.

Other Institutional Investments

Recent reports indicate that various hedge funds have modified their positions in Costco as well. For instance, Proficio Capital Partners LLC significantly raised its stake by an astounding 74,796.3% during the fourth quarter, now owning 1,521,893 shares valued at approximately $1,394,465,000 after acquiring 1,519,861 shares. Similarly, Strategic Financial Concepts LLC increased its stake by 100,422.3%, resulting in ownership of 796,137 shares worth about $729,476,000 following the purchase of 795,345 shares.

Additionally, Vanguard Group Inc. raised its investment by 1.1%, bringing their total ownership to 42,201,610 shares valued at around $38,668,069,000 after acquiring 455,043 shares. Assenagon Asset Management S.A. increased its stake by 55.7%, now holding 1,068,772 shares worth $979,284,000. Finally, FMR LLC raised its position by 3.6%, owning 9,308,615 shares valued at $8,252,274,000, after purchasing 324,973 shares. Currently, institutional investors own about 68.48% of Costco’s stock.

Costco’s Recent Performance

Costco's stock opened at $909.26 on Monday. The company has a current ratio of 0.98, a quick ratio of 0.43, and a debt-to-equity ratio of 0.23. Over the past year, Costco's stock has experienced a low of $697.27 and a high of $1,078.24. It has a fifty-day moving average price of $987.55 and a two-hundred-day average price of $945.45, with a market capitalization of $403.42 billion, a price-to-earnings ratio of 53.39, a PEG ratio of 6.15, and a beta of 0.82.

Earnings Report

Costco Wholesale's latest earnings results were announced on March 6th, reporting earnings per share of $4.02, slightly below the consensus estimate of $4.09. Notably, the company achieved a return on equity of 32.31% with a net margin of 2.93%. The revenue for the quarter was $63.72 billion, surpassing analyst expectations of $63.02 billion. Analysts are anticipating that Costco will post earnings per share of 18.03 for the current fiscal year.

Dividend Information

Furthermore, Costco has declared a quarterly dividend, which was paid on February 21st. Shareholders who were on record by February 7th received $1.16 as a dividend. This corresponds to an annualized dividend of $4.64, yielding approximately 0.51%. The ex-dividend date was also reported as February 7th, and Costco's payout ratio stands at 27.09%.

Analyst Ratings and Price Targets

Several analysts have recently updated their price targets for Costco shares. Evercore ISI increased its price target from $1,050.00 to $1,070.00 and assigned an "outperform" rating. Truist Financial raised its target from $935.00 to $995.00, maintaining a "hold" rating. Cowen reiterated a "buy" rating. Barclays adjusted their target from $940.00 to $980.00, rating it as "equal weight." Oppenheimer also reaffirmed an "outperform" rating with a revised target price of $1,075.00, up from $980.00. In total, nine analysts have rated the stock with a hold rating while twenty-one have issued buy ratings. The consensus rating for Costco Wholesale remains as a "Moderate Buy," with a target price averaging $1,029.00.

Insider Transactions

In related news, CEO Roland Michael Vachris sold 3,600 shares of Costco stock on March 11th at an average price of $931.00, resulting in a total sale of $3,351,600.00. Post-sale, the CEO holds approximately 41,077 shares valued at about $38,242,687, marking an 8.06% reduction in their ownership. This transaction was filed with the SEC and is publicly accessible. Currently, insiders hold around 0.18% of Costco's shares.

Company Overview

Costco Wholesale Corporation operates membership-based warehouse clubs in countries including the United States, Mexico, Japan, Canada, and several others. The company provides a wide array of merchandises, including both branded and private-label products across various categories.

Costco, Investment, Stock