Costco Wholesale Corporation $COST Position Reduced by Hixon Zuercher LLC

Key Points

• Hixon Zuercher LLC trimmed its stake by 50.3% in the fourth quarter, selling 3,027 shares and leaving the fund with 2,987 Costco shares worth about $2.576 million.
• The board approved a 13% quarterly dividend increase to $1.47 per share (annualized $5.88), payable May 15 (ex-dividend May 1), representing a 0.6% yield and a ~27% payout ratio.
• Analysts remain broadly positive—22 Buys, 11 Holds and 1 Sell with a consensus "Moderate Buy" target of $1,043.13—after a slight quarterly beat (EPS $4.58 vs. $4.55 and revenue $69.6B, +9.2% YoY), though the stock trades at a premium (P/E ~51) which may limit near-term upside.

Hixon Zuercher LLC trimmed its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 50.3% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 2,987 shares of the retailer's stock after selling 3,027 shares during the quarter. Hixon Zuercher LLC's holdings in Costco Wholesale were worth $2,576,000 at the end of the most recent quarter.

A number of other large investors have also recently added to or reduced their stakes in the stock. Amundi boosted its stake in Costco Wholesale by 45.0% during the 3rd quarter. Amundi now owns 3,176,606 shares of the retailer's stock valued at $2,893,697,000 after acquiring an additional 986,182 shares during the last quarter. Fisher Asset Management LLC boosted its stake in Costco Wholesale by 1.1% during the 3rd quarter. Fisher Asset Management LLC now owns 3,145,241 shares of the retailer's stock valued at $2,911,331,000 after acquiring an additional 34,826 shares during the last quarter. American Century Companies Inc. boosted its stake in Costco Wholesale by 8.5% during the 3rd quarter. American Century Companies Inc. now owns 1,619,703 shares of the retailer's stock valued at $1,499,246,000 after acquiring an additional 127,495 shares during the last quarter. Principal Financial Group Inc. boosted its stake in Costco Wholesale by 0.7% during the 3rd quarter. Principal Financial Group Inc. now owns 1,210,837 shares of the retailer's stock valued at $1,120,787,000 after acquiring an additional 8,259 shares during the last quarter. Finally, California Public Employees Retirement System boosted its stake in Costco Wholesale by 13.3% during the 3rd quarter. California Public Employees Retirement System now owns 1,160,702 shares of the retailer's stock valued at $1,074,381,000 after acquiring an additional 136,072 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

COST has been the topic of a number of research analyst reports. BTIG Research reiterated a "buy" rating and set a $1,115.00 price objective on shares of Costco Wholesale in a research note on Thursday, March 5th. Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a research note on Monday, December 22nd. Bank of America initiated coverage on shares of Costco Wholesale in a research report on Friday, February 27th. They issued a "buy" rating and a $1,185.00 price target on the stock. BMO Capital Markets raised their price target on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an "outperform" rating in a research report on Friday, March 6th. Finally, Roth Mkm restated a "sell" rating on shares of Costco Wholesale in a research report on Wednesday, February 4th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $1,043.13.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Board approved a 13% increase in the quarterly cash dividend (from $1.30 to $1.47 per share; annualized $5.88), payable May 15 — a shareholder-friendly move that supports income investors and signals confidence in cash flow. GlobeNewswire: Dividend Announcement
• Positive Sentiment: Research houses (Telsey Advisory Group and Wells Fargo) raised price targets and reiterated positive ratings, citing steady execution — analyst upgrades and higher targets often lift sentiment and buying interest. Yahoo Finance: Telsey & Wells Fargo Raise Targets
• Positive Sentiment: Recent retail data show strong March sales and comp-store strength (including digital growth), reinforcing the view that Costco’s membership model continues to drive traffic and sales momentum. Zacks: Strong March Retail Sales
• Positive Sentiment: International expansion, especially strong performance in Japan (now a top market), highlights recurring membership growth and a path for overseas store openings to add incremental revenue. Yahoo Finance: Japan Growth
• Neutral Sentiment: Positive brand coverage (iconic U.S. positioning, $1.50 hot dog lore) reinforces customer loyalty and marketing moat but has limited direct near-term impact on earnings. USA Today: Iconic Brand Story
• Neutral Sentiment: Commentary suggesting Costco could be considered for the Dow adds prestige and occasional headline interest, but index inclusion is speculative and not an immediate earnings driver. 247WallSt: Dow Inclusion Discussion
• Negative Sentiment: Multiple pieces note Costco’s premium valuation (high P/E and compressed yield versus peers) and recent pullback, warning that rich multiples may limit near-term upside despite operational strength. That valuation concern is a key counterweight for growth-oriented buyers. Yahoo Finance: Valuation / Reassessment

Insider Activity at Costco Wholesale

In related news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the sale, the executive vice president directly owned 6,121 shares in the company, valued at $6,139,485.42. This trade represents a 10.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Susan L. Decker sold 458 shares of Costco Wholesale stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $955.00, for a total transaction of $437,390.00. Following the completion of the sale, the director owned 8,532 shares in the company, valued at approximately $8,148,060. This represents a 5.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 2,038 shares of company stock worth $2,007,916 in the last ninety days. 0.10% of the stock is owned by insiders.

Costco Wholesale Trading Up 1.0%

Costco Wholesale stock opened at $984.75 on Thursday. The firm's 50-day moving average is $995.81 and its 200-day moving average is $943.83. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,067.08. The company has a market cap of $436.88 billion, a P/E ratio of 51.21, a PEG ratio of 4.80 and a beta of 0.99.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.55 by $0.03. The company had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The company's revenue for the quarter was up 9.2% on a year-over-year basis. During the same period last year, the firm posted $4.02 EPS. On average, equities analysts expect that Costco Wholesale Corporation will post 18.03 earnings per share for the current year.

Costco Wholesale Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be given a $1.47 dividend. The ex-dividend date is Friday, May 1st. This represents a $5.88 annualized dividend and a yield of 0.6%. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's payout ratio is 27.04%.

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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