Costco Earnings Beat Estimates with 8.3% Revenue Growth; Major Investors Shift Stakes
Costco reported quarterly EPS of $4.34 versus $4.27 estimate and revenue of $67.31 billion (+8.3% YoY), with ROE of 29.35% and net margin 2.96%. IMS Investment trimmed its stake by 28.3% to 5,194 shares (worth $4.81 million), while Annex Advisory raised its position by 8% to 38,395 shares ($35.54 million).
1. Analyst IMS Investment Management Sells 2,053 Shares
In its third-quarter 13F filing, IMS Investment Management Services Ltd. reduced its position in Costco by 28.3%, selling 2,053 shares and ending the period with 5,194 shares. The remaining stake was valued at approximately $4.81 million at quarter-end, reflecting a notable shift in the firm’s allocation and signaling a reassessment of Costco’s near-term growth prospects among this advisory specialist.
2. Annex Advisory Services Lifts Holding by 8%
Annex Advisory Services LLC added 2,841 shares of Costco during the same quarter, boosting its total to 38,395 shares. That position carried a reported value of $35.54 million as of the latest SEC filing, underscoring confidence from this institutional investor in Costco’s membership-driven model and long-term compounding potential despite broader retail uncertainties.
3. Institutional Ownership and Investor Implications
Institutional investors now control 68.48% of Costco’s shares, with recent activity split between profit-taking and fresh accumulation. These shifts come alongside a stable dividend payout ratio of 27.85% and a dividend yield near 0.6%, supported by quarterly earnings of $4.34 per share on $67.31 billion in revenue, up 8.3% year-over-year. For long-term holders, the mixed signals from heavyweight funds highlight the importance of Costco’s high-margin membership fees and disciplined expansion as key drivers of future returns.