AEGON ASSET MANAGEMENT UK Plc Sells 4,903 Shares of Costco Wholesale Corporation $COST

Key Points

• AEGON Asset Management UK Plc cut its Costco stake by 13.4% in the first quarter, selling 4,903 shares and leaving it with 31,711 shares worth about $31.6 million.
• Wall Street remains generally constructive on Costco, with a consensus rating of Moderate Buy and an average price target of $1,061.45, though analyst opinions are mixed.
• Costco’s latest results showed solid operating momentum—including comparable sales up 9.8% and membership fees up 10.7%—but the stock still faces valuation concerns after missing EPS estimates by a penny and trading at a premium multiple.

AEGON ASSET MANAGEMENT UK Plc decreased its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 13.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 31,711 shares of the retailer's stock after selling 4,903 shares during the quarter. AEGON ASSET MANAGEMENT UK Plc's holdings in Costco Wholesale were worth $31,592,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in Costco Wholesale in the 4th quarter worth about $27,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale during the 4th quarter valued at $28,000. Hurley Capital LLC grew its holdings in shares of Costco Wholesale by 120.0% during the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after purchasing an additional 18 shares in the last quarter. Lifetime Wealth Management P.C. acquired a new stake in shares of Costco Wholesale during the 4th quarter worth $28,000. Finally, Entrust Financial LLC bought a new position in shares of Costco Wholesale in the fourth quarter worth $31,000. 68.48% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms recently commented on COST. Daiwa Securities Group boosted their price target on Costco Wholesale from $917.00 to $975.00 and gave the company a "neutral" rating in a research note on Tuesday, March 10th. Raymond James Financial raised their target price on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an "outperform" rating in a report on Friday, March 6th. Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Deutsche Bank Aktiengesellschaft upped their price target on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Finally, Sanford C. Bernstein increased their price target on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research report on Friday, May 29th. Twenty-two 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 stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $1,061.45.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco’s latest operating update showed strong momentum, with comparable sales up 9.8%, membership fees rising 10.7%, and digitally enabled sales jumping 21.5%, reinforcing the company’s durable growth story. Prediction: Costco Will Trade At This Price in 2027
• Positive Sentiment: Analysts and commentators continue to highlight Costco’s competitive advantages, loyal membership base, and ongoing technology investments to improve the shopping experience and ease customer pain points like parking. Costco tackles major frustration for members
• Positive Sentiment: Several recent articles frame the stock weakness as a possible buying opportunity, pointing to Costco’s resilient business model and long-term compounding potential. Why Weakness in Dividend-Paying Costco Stock Is a Strong Buying Opportunity
• Neutral Sentiment: Fresh media coverage around Costco products, store hours, and local development approvals is supportive of brand visibility, but these items are unlikely to materially move the stock on their own. Is Costco open on Juneteenth?
• Negative Sentiment: Investor sentiment remains cautious because Costco’s premium valuation is being questioned amid macro uncertainty and sticky inflation, with one recent note saying growth may not fully justify the stock’s price. Should You Buy Costco Stock for the Long Haul? Here's the Honest Answer.
• Negative Sentiment: Analyst disagreement is also weighing on the shares, with one report noting Costco fell after Citi and Bernstein issued conflicting views on the big-box retailer. Costco Stock (COST) Drops as Analysts Can’t Agree on the Big-Box Retailer

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $951.45 on Monday. The firm has a market cap of $421.95 billion, a PE ratio of 47.86, a price-to-earnings-growth ratio of 4.61 and a beta of 0.88. The firm's fifty day moving average is $1,000.19 and its 200-day moving average is $969.42. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The company had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. During the same quarter last year, the business earned $4.28 earnings per share. Sell-side analysts predict that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were issued a $1.47 dividend. The ex-dividend date was Friday, May 1st. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's dividend payout ratio is presently 29.58%.

About Costco Wholesale

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.

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