Bowen Hanes & Co. Inc. Reduces Stock Position in Costco Wholesale Corporation $COST

Key Points

• Bowen Hanes & Co. Inc. reduced its Costco stake by 19.1% in the fourth quarter, selling 22,587 shares and ending with 95,694 shares worth about $82.5 million.
• Despite that sale, Costco continues to attract major institutional interest, with firms like Norges Bank and Assenagon Asset Management significantly adding to their positions; institutions now own 68.48% of the company.
• Costco’s business momentum remains strong: May net sales rose 14.5% year over year, analysts kept a constructive stance with a consensus Moderate Buy rating, and the company recently increased its quarterly dividend to $1.47 per share.

Bowen Hanes & Co. Inc. lessened its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 19.1% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 95,694 shares of the retailer's stock after selling 22,587 shares during the quarter. Costco Wholesale accounts for 2.1% of Bowen Hanes & Co. Inc.'s portfolio, making the stock its 14th largest position. Bowen Hanes & Co. Inc.'s holdings in Costco Wholesale were worth $82,521,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in COST. Norges Bank purchased a new stake in shares of Costco Wholesale in the fourth quarter worth about $5,195,415,000. Assenagon Asset Management S.A. boosted its stake in shares of 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 worth $980,857,000 after buying an additional 1,070,005 shares during the last quarter. Amundi boosted its stake in shares of Costco Wholesale by 45.0% in the third quarter. Amundi now owns 3,176,606 shares of the retailer's stock worth $2,893,697,000 after buying an additional 986,182 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Costco Wholesale by 182.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 536,059 shares of the retailer's stock worth $462,265,000 after buying an additional 346,208 shares during the last quarter. Finally, Voloridge Investment Management LLC boosted its stake in shares of Costco Wholesale by 112.2% in the third quarter. Voloridge Investment Management LLC now owns 477,425 shares of the retailer's stock worth $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.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Costco reported robust May sales growth, with net sales up 14.5% year over year and strong comparable sales across key geographies, signaling healthy demand and execution. Costco Wholesale Corporation Reports May Sales Results
• Positive Sentiment: Analysts remained constructive, with TD Cowen reaffirming a Buy rating and lifting its price target to $1,175, suggesting more upside if Costco keeps delivering on sales and memberships. Benzinga coverage of TD Cowen rating
• Positive Sentiment: Articles highlighted Costco’s accelerating growth drivers, including stronger digital demand, membership income, and traffic, which support the long-term bullish case for the stock. 3 Compelling Costco Growth Drivers You Might Not Know About
• Positive Sentiment: Higher gasoline prices may be driving more traffic to Costco fuel stations, helping boost store visits and supporting the warehouse club’s value proposition. Costco gets surprising lift from an everyday expense

Insider Activity at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the 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 transaction of $732,204.60. Following the completion of the transaction, 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 legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.10% of the stock is owned by insiders.

Analyst Ratings Changes

A number of analysts have recently commented on COST shares. Daiwa Securities Group upped their target price on Costco Wholesale from $917.00 to $975.00 and gave the stock a "neutral" rating in a research note on Tuesday, March 10th. Oppenheimer upped their target price on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 19th. Telsey Advisory Group upped their target price on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an "outperform" rating in a research note on Thursday, April 9th. Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a research note on Monday. Finally, JPMorgan Chase & Co. upped their target price on Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an "overweight" rating in a research note on Friday, April 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 company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,060.41.

Costco Wholesale Price Performance

Shares of Costco Wholesale stock opened at $961.83 on Thursday. The business has a 50 day simple moving average of $1,006.79 and a two-hundred day simple moving average of $963.58. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The stock has a market capitalization of $426.72 billion, a P/E ratio of 48.38, a PEG ratio of 4.62 and a beta of 0.88. 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 (NASDAQ:COST - Get Free Report) last announced its earnings results on Thursday, May 28th. The retailer reported $4.93 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 28.72%. The firm had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same period in the previous year, the company earned $4.28 EPS. As a group, analysts predict that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal 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 issued a dividend of $1.47 per share. 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. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's payout ratio is currently 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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