BLI Banque de Luxembourg Investments Lowers Stock Holdings in Costco Wholesale Corporation $COST

Key Points

• BLI Banque de Luxembourg Investments cut its Costco stake by 23.7% in the fourth quarter, selling 2,200 shares and leaving it with 7,100 shares valued at about $6.15 million.
• Wall Street remains broadly positive on Costco, with 22 analysts rating it a Buy, 11 a Hold, and one a Sell, for an average Moderate Buy rating and a $1,060.41 target price.
• Costco reported quarterly EPS of $4.93, just below expectations, while revenue came in slightly above estimates; the company also raised its dividend to $1.47 per share quarterly, up from $1.30.

BLI Banque de Luxembourg Investments lowered its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 23.7% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 7,100 shares of the retailer's stock after selling 2,200 shares during the quarter. BLI Banque de Luxembourg Investments' holdings in Costco Wholesale were worth $6,147,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Hurley Capital LLC grew its holdings in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after buying an additional 18 shares during the last quarter. Entrust Financial LLC acquired a new stake in Costco Wholesale in the fourth quarter valued at about $31,000. Abich Financial Wealth Management LLC acquired a new stake in Costco Wholesale in the third quarter valued at about $34,000. Joseph Group Capital Management acquired a new stake in Costco Wholesale in the fourth quarter valued at about $33,000. Finally, Imprint Wealth LLC acquired a new stake in Costco Wholesale in the third quarter valued at about $36,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

Analysts Set New Price Targets

COST has been the subject of a number of recent analyst reports. HC Wainwright restated a "buy" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Truist Financial raised their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a research report on Friday, May 29th. BMO Capital Markets raised their price objective on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the company an "outperform" rating in a research report on Friday, March 6th. Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a research report on Monday, June 1st. Finally, Rothschild & Co Redburn lifted their price target on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the company a "neutral" rating in a research report on Tuesday, February 17th. 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 data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $1,060.41.

Costco Wholesale Stock Up 0.3%

COST stock opened at $974.75 on Tuesday. The stock has a market capitalization of $432.28 billion, a P/E ratio of 49.03, a PEG ratio of 4.71 and a beta of 0.88. 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 one year low of $844.06 and a one year high of $1,096.50. The company has a 50 day moving average price of $1,006.61 and a two-hundred day moving average price of $964.91.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). The firm had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same period in the previous year, the firm posted $4.28 earnings per share. As a group, sell-side analysts expect that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Increases Dividend

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

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco lowered prices on several Kirkland Signature/private-label items, including food, home goods, and sports equipment, signaling a continued focus on member value and traffic retention. Costco lowers prices on four private-label products across food, home goods and sports equipment aisles
• Positive Sentiment: Reports say Costco is cutting prices on popular Kirkland items, which could strengthen its value image versus competitors and help keep members shopping more often. Why Costco Just Voluntarily Lowered Prices on These Popular Kirkland Items
• Positive Sentiment: Costco’s digital business showed strong momentum, with digital comps up sharply and app traffic rising, suggesting a bigger opportunity for online sales and personalization-driven growth. Costco’s Lowered Prices Show Why Shoppers Keep Returning
• Positive Sentiment: Analysts highlighted Costco’s digital surge as a sign the retailer may be becoming an even stronger omnichannel winner. Costco Leans On Kirkland Price Cuts To Support Growth Narrative
• Neutral Sentiment: Several lifestyle and shopping guides featured Costco products for summer and Fourth of July hosting, which adds visibility but is unlikely to materially move the stock. 9 Costco finds to host the best Fourth of July BBQ ever
• Neutral Sentiment: Commentary about CEO Ron Vachris’s rise from the warehouse floor is largely narrative-driven and does not appear to change the near-term outlook. Costco CEO Ron Vachris rose from the warehouse floor to the corner office without a college degree—and he says it’s thanks to not job hopping
• Negative Sentiment: One article noted Costco’s stock has been falling in recent weeks and is still below recent highs, reflecting some investor caution despite the operational positives. Should You Buy Costco Wholesale Stock While It's Below $1,000?
• Negative Sentiment: Broader consumer commentary about $4 gas and inflation pressure could weigh on discretionary spending and keep investors cautious about margins and demand trends. Consumers look resilient on the surface, but $4 gas was a tipping point and Costco members are filling up more often in case prices go even higher

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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