Bessemer Group Inc. Sells 157,803 Shares of Costco Wholesale Corporation $COST

Key Points

• Bessemer Group Inc. reduced its Costco stake by 21% in the fourth quarter, selling 157,803 shares and leaving it with 593,588 shares valued at about $511.9 million. Costco still accounted for roughly 0.8% of the firm’s portfolio.
• Wall Street sentiment remains broadly positive, with several firms raising price targets to around $1,100; the consensus analyst target is $1,047.27 and the stock carries a Moderate Buy rating overall.
• Costco continues to show strong operating momentum, recently beating quarterly earnings and revenue estimates, while also lifting its quarterly dividend to $1.47 per share from $1.30.

Bessemer Group Inc. cut its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 21.0% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 593,588 shares of the retailer's stock after selling 157,803 shares during the period. Costco Wholesale accounts for approximately 0.8% of Bessemer Group Inc.'s portfolio, making the stock its 16th largest holding. Bessemer Group Inc. owned approximately 0.13% of Costco Wholesale worth $511,876,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Hurley Capital LLC increased its position in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock valued at $31,000 after buying an additional 18 shares during the period. Joseph Group Capital Management bought a new stake in shares of Costco Wholesale during the fourth quarter valued at about $33,000. Abich Financial Wealth Management LLC bought a new stake in shares of Costco Wholesale during the third quarter valued at about $34,000. Collier Financial bought a new stake in shares of Costco Wholesale during the third quarter valued at about $35,000. Finally, AXS Investments LLC bought a new stake in shares of Costco Wholesale during the third quarter valued at about $36,000. 68.48% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have recently commented on COST. Raymond James Financial boosted their price objective on Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Friday, March 6th. Weiss Ratings raised shares of Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, March 17th. Wells Fargo & Company boosted their price target on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 9th. Mizuho boosted their price target on shares of Costco Wholesale from $1,065.00 to $1,100.00 and gave the stock an "outperform" rating in a research note on Thursday, April 16th. Finally, Robert W. Baird set a $1,100.00 price target on shares of Costco Wholesale in a research note on Thursday, February 5th. Twenty-two equities 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 data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,047.27.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco acquired a 55-acre site in Fort Myers, Florida, signaling room for a major new warehouse or related retail development and supporting its expansion strategy. Costco Acquires 55-Acre Site in Fort Myers, Marking One of Southwest Florida's Largest and Highest-Value Land Sales
• Positive Sentiment: New commentary highlighted Costco’s strong membership economics, noting 82.1 million paid memberships and an 89.7% global renewal rate, which suggests resilient recurring revenue even as inflation pressures households. Inflation Just Hit 3.8% and Nine Out of Ten Costco Members Re-Up Every Year. Here Is Why That Math Matters.
• Positive Sentiment: Additional bullish coverage emphasized Costco’s durable business model and continued store-growth potential, reinforcing investor confidence in the company’s long-term earnings power. Costco Just Signed Off on a Massive Retail Real Estate Deal in Florida. Here's What Investors Need to Know About Costco's Store Growth Goals.
• Neutral Sentiment: One analyst note argued Costco remains a strong company but is still trading at a premium valuation, which may temper enthusiasm even with solid fundamentals. Costco: Strong Fundamentals Meet Growth Premium - A Hold Entering FQ3'26
• Negative Sentiment: Another Seeking Alpha piece raised a bearish view on Costco, suggesting valuation remains a reason to sell despite the company’s operational strength. Costco: Another Reason To Sell (Besides The Valuation)

Costco Wholesale Stock Up 0.8%

Shares of COST opened at $1,041.25 on Friday. The firm has a market cap of $461.95 billion, a P/E ratio of 54.15, a P/E/G ratio of 5.09 and a beta of 0.92. The stock has a 50 day simple moving average of $1,000.06 and a two-hundred day simple moving average of $954.40. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,067.08.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.55 by $0.03. The business had revenue of $69.60 billion during the quarter, compared to analyst estimates of $68.96 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.Costco Wholesale's revenue for the quarter was up 9.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $4.02 earnings per share. On average, analysts forecast that Costco Wholesale Corporation will post 20.32 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 1st will be paid a $1.47 dividend. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Friday, May 1st. Costco Wholesale's payout ratio is currently 30.58%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total value of $732,204.60. Following the completion of the sale, the executive vice president owned 6,121 shares of the company's stock, valued at $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.10% of the stock is currently owned by corporate insiders.

Costco Wholesale Company 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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