Axiom Investors LLC DE Reduces Stake in Costco Wholesale Corporation $COST

Key Points

• Axiom Investors LLC DE cut its Costco stake by 69.4% in the fourth quarter, selling 80,351 shares and leaving it with 35,408 shares worth about $30.5 million.
• Other institutional investors remained active in Costco, including Norges Bank, which initiated a large new position, while hedge funds and institutions still own 68.48% of the company.
• Costco’s recent business updates were mostly positive: record gasoline demand, digital sales up more than 21%, and lower prices on select Kirkland items, even as the stock has faced pressure on valuation and near-term weakness.

Axiom Investors LLC DE lowered its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 69.4% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 35,408 shares of the retailer's stock after selling 80,351 shares during the period. Axiom Investors LLC DE's holdings in Costco Wholesale were worth $30,534,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently bought and sold shares of COST. Norges Bank purchased a new stake in Costco Wholesale in the fourth quarter valued at approximately $5,195,415,000. Assenagon Asset Management S.A. boosted its position in Costco Wholesale by 1,586.8% in the fourth quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer's stock valued at $980,857,000 after buying an additional 1,070,005 shares during the last quarter. Amundi boosted its position in Costco Wholesale by 45.0% in the third quarter. Amundi now owns 3,176,606 shares of the retailer's stock valued at $2,893,697,000 after buying an additional 986,182 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in Costco Wholesale by 182.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 536,059 shares of the retailer's stock valued at $462,265,000 after buying an additional 346,208 shares during the last quarter. Finally, Voloridge Investment Management LLC boosted its position in Costco Wholesale by 112.2% in the third quarter. Voloridge Investment Management LLC now owns 477,425 shares of the retailer's stock valued at $441,919,000 after buying an additional 252,453 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco reported record demand for gasoline, which reinforces traffic and engagement at its warehouses and supports the company’s value proposition. Costco sees record demand for gas since Middle East war
• Positive Sentiment: Its digital sales jumped more than 21%, signaling continued momentum in e-commerce and omnichannel growth. Costco's Digital Sales Jumped 21% and Gas Volumes Hit a Record. So Why Did COST Stock Drop 5%?
• Positive Sentiment: Costco also lowered prices on select Kirkland Signature products, a move that could strengthen member loyalty and help drive traffic as shoppers look for value. Costco lowers prices on four private-label products across food, home goods and sports equipment aisles
• Neutral Sentiment: Short-interest data appears unreliable in the filing shown, so it does not provide a clear read on sentiment.
• Negative Sentiment: Despite the strong operational updates, investors appeared to focus on valuation and near-term stock weakness, with commentary noting the shares have been falling in recent weeks. Should You Buy Costco Wholesale Stock While It's Below $1,000?

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. The Goldman Sachs Group upped their target price on Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Rothschild & Co Redburn upped their price objective on Costco Wholesale from $890.00 to $1,000.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 17th. Roth Mkm raised their price objective on shares of Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research note on Friday, May 29th. BTIG Research reaffirmed a "buy" rating and set a $1,125.00 target price on shares of Costco Wholesale in a report on Friday, May 29th. Finally, Evercore set a $1,100.00 target price on shares of Costco Wholesale in a research note on Monday, March 2nd. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Costco Wholesale currently has an average rating of "Moderate Buy" and an average target price of $1,060.41.

Costco Wholesale Stock Performance

COST opened at $968.59 on Wednesday. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The stock has a market cap of $429.55 billion, a P/E ratio of 48.72, a P/E/G ratio of 4.72 and a beta of 0.88. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The firm has a fifty day moving average price of $1,006.30 and a 200 day moving average price of $965.46.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results 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 net margin of 3.01% and a return on equity of 28.04%. The company had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same period in the prior year, the business posted $4.28 EPS. Equities research analysts anticipate that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

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

Costco Wholesale 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.

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