Peterson Wealth Services Increases Stake in Costco Wholesale

Peterson Wealth Services has increased its position in shares of Costco Wholesale Corporation (NASDAQ: COST) by 0.5% during the second quarter of 2023, as detailed in its latest filing with the Securities and Exchange Commission. The institutional investor now holds 13,616 shares of the retailer’s stock, having purchased an additional 72 shares during this period. Costco makes up approximately 3.7% of Peterson Wealth Services’ portfolio, ranking it as the firm’s sixth-largest investment. At the end of the most recent quarter, the stake was valued at $13,479,000.

Other institutional investors have also made significant movements in Costco shares. For instance, Fishman Jay A Ltd. MI raised its stake by 3.5% in the second quarter, now owning 16,888 shares valued at $16,718,000 after acquiring an additional 575 shares. Similarly, Independent Solutions Wealth Management LLC increased its holdings by 0.3%, resulting in ownership of 20,638 shares, valued at $20,430,000.

Additionally, Personal CFO Solutions LLC boosted its position by 12.4%, now holding 1,519 shares worth $1,436,000. Graybill Wealth Management LTD. made a notable entry with a purchase valued at $3,095,000, while Rossmore Private Capital increased its holdings by 0.9%, bringing its total to 6,687 shares valued at $6,325,000. Collectively, institutional investors now own 68.48% of Costco’s stock.

Insider Transactions and Company Performance

In other developments, insider transactions have seen significant activity. Tiffany Marie Barbre, an insider, sold 1,239 shares on October 24, 2023, at an average price of $934.62, totaling $1,157,994.18. Following this sale, Barbre retained 5,155 shares, now valued at around $4,817,966.10, marking a 19.38% decrease in her ownership.

Moreover, Russell D. Miller, Executive Vice President, sold 3,381 shares on September 29, 2023, at an average price of $915.00, for a total of $3,093,615.00. After this transaction, Miller holds 9,740 shares, valued at $8,912,100, representing a 25.77% reduction in his ownership. Over the past three months, insiders have sold a total of 7,920 shares, amounting to $7,373,175. Currently, insiders own 0.18% of the company’s stock.

Costco’s performance remains robust, as evidenced by its latest earnings report. On September 25, 2023, the company announced earnings per share (EPS) of $5.87 for the quarter, surpassing analysts’ expectations of $5.81 by $0.06. The retailer reported revenues of $86.16 billion, exceeding the consensus estimate of $86.01 billion. The company’s net margin stands at 2.94%, with a return on equity of 30.09%. Year-over-year, revenue increased by 8.1%, up from $5.15 EPS in the same quarter last year.

Dividend Announcement and Analyst Ratings

Costco also announced a quarterly dividend of $1.30, payable on November 14, 2023, to shareholders recorded by October 31, 2023. This contributes to an annualized dividend of $5.20 and a yield of 0.6%. The company’s dividend payout ratio is currently 28.56%.

Analyst ratings reflect a generally positive outlook for Costco. The Goldman Sachs Group recently raised its target price from $1,333.00 to $1,418.00, maintaining a “buy” rating. Conversely, Erste Group Bank downgraded its rating from “buy” to “hold.” DA Davidson and Mizuho have reaffirmed their ratings, with DA Davidson issuing a price objective of $1,000.00 and Mizuho adjusting its target to $950.00. Currently, the consensus rating among analysts is “Moderate Buy,” with an average target price of $1,068.15.

Costco Wholesale Corporation continues to operate its membership warehouses across multiple countries, including the United States, Canada, Mexico, and several nations in Europe and Asia. The company is known for offering both branded and private-label products across various merchandise categories.