Comerica Bank Trims Stake in Costco Wholesale Corporation $COST

Key Points

• Comerica Bank reduced its Costco stake by 7.1% in Q4, selling 8,510 shares and ending the period with 110,727 shares valued at about $95.48 million.
• Costco’s fundamentals and sentiment remain solid: it beat Q results (EPS $4.58 vs $4.55) with revenue up 9.2%, raised the quarterly dividend to $1.47 (annualized $5.88, ex-dividend May 1), and holds a "Moderate Buy" analyst consensus with an average price target of $1,045.97.

Comerica Bank decreased its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 7.1% during the fourth quarter, according to its most recent filing with the SEC. The firm owned 110,727 shares of the retailer's stock after selling 8,510 shares during the period. Comerica Bank's holdings in Costco Wholesale were worth $95,484,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in COST. Hurley Capital LLC grew its stake in shares of Costco Wholesale by 120.0% in the 3rd 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. Abich Financial Wealth Management LLC purchased a new stake in shares of Costco Wholesale in the 3rd quarter worth approximately $34,000. Collier Financial purchased a new stake in shares of Costco Wholesale in the 3rd quarter worth approximately $35,000. AXS Investments LLC purchased a new stake in shares of Costco Wholesale in the 3rd quarter worth approximately $36,000. Finally, Imprint Wealth LLC purchased a new stake in shares of Costco Wholesale in the 3rd quarter worth approximately $36,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Membership renewal rates remain near record highs, which supports recurring revenue, cash flow and the margin profile that underpins Costco’s rich valuation. Targeted outreach and auto‑renewal programs could further stabilize retention. Costco's Renewal Rates Hold Strong: Can Digital Members Catch Up?
• Positive Sentiment: Analyst previews expect Costco’s upcoming quarter to show low‑double‑digit EPS growth, reinforcing near‑term earnings momentum and supporting consensus estimates ahead of the print. Here's What to Expect From Costco Wholesale’s Next Earnings Report
• Neutral Sentiment: Heightened retail and investor attention: Zacks notes COST is a "trending" stock, which can boost volume and volatility but doesn't change fundamentals. Expect bigger intraday swings while momentum is concentrated. Costco Wholesale Corporation (COST) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Some customer-service and product FAQs (e.g., tire returns) circulated broadly; these are largely operational/consumer‑facing stories with limited impact on corporate profitability. Does Costco accept returns on tires?
• Negative Sentiment: Competitive pressure: BJ’s expanded aggressively into Texas and the warehouse‑club segment is getting more competitive. Increased competition could pressure membership growth, traffic or pricing in certain markets over time. BJ’s takes on Costco with major expansion
• Negative Sentiment: Digital-member renewal rates lag in some cohorts; if digital sign‑ups consistently underperform, membership revenue growth could slow unless outreach/auto‑renewal efforts fully close the gap. Costco's Renewal Rates Hold Strong: Can Digital Members Catch Up?

Analyst Upgrades and Downgrades

Several research firms recently weighed in on COST. Rothschild & Co Redburn upped their price target on Costco Wholesale from $890.00 to $1,000.00 and gave the stock a "neutral" rating in a research note on Tuesday, February 17th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $1,050.00 target price on shares of Costco Wholesale in a report on Thursday, March 5th. BMO Capital Markets lifted their target price on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an "outperform" rating in a report on Friday, March 6th. Gordon Haskett lifted their target price on shares of Costco Wholesale from $1,000.00 to $1,100.00 in a report on Tuesday, February 3rd. Finally, Weiss Ratings raised shares of Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, March 17th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Costco Wholesale currently has an average rating of "Moderate Buy" and an average price target of $1,045.97.

Costco Wholesale Stock Performance

Shares of COST opened at $998.01 on Tuesday. The business's fifty day simple moving average is $996.71 and its two-hundred day simple moving average is $948.66. The company has a market cap of $442.77 billion, a price-to-earnings ratio of 51.90, a P/E/G ratio of 4.98 and a beta of 0.99. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,067.08.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share for the quarter, beating the consensus estimate of $4.55 by $0.03. The firm had revenue of $69.60 billion for the quarter, compared to analysts' expectations of $68.96 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The company's revenue was up 9.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.02 EPS. Research analysts anticipate that Costco Wholesale Corporation will post 20.31 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

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

Insider Buying and Selling at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of the stock in a transaction 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 transaction, the executive vice president directly owned 6,121 shares of the company's stock, valued at $6,139,485.42. This represents a 10.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.10% of the stock is owned by 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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