Costco Wholesale Corporation $COST Stake Lessened by National Pension Service

Key Points

• National Pension Service trimmed its Costco stake by 7.9% in the fourth quarter, selling 78,384 shares and leaving it with 919,193 shares valued at about $792.7 million.
• Costco’s latest quarter was mixed but resilient: revenue topped estimates at $70.53 billion, while EPS of $4.93 narrowly missed consensus; same-store sales and membership-driven traffic remained strong.
• Analysts remain broadly positive on Costco, with 21 Buy ratings and a consensus “Moderate Buy” rating, even as some price targets were adjusted and the stock trades at a premium valuation.

National Pension Service lessened its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 7.9% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 919,193 shares of the retailer's stock after selling 78,384 shares during the period. Costco Wholesale comprises about 0.6% of National Pension Service's investment portfolio, making the stock its 25th largest position. National Pension Service owned approximately 0.21% of Costco Wholesale worth $792,657,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in COST. Hurley Capital LLC increased its stake in shares of Costco Wholesale by 120.0% in 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 bought a new stake in shares of Costco Wholesale in the fourth quarter worth $31,000. Joseph Group Capital Management bought a new stake in shares of Costco Wholesale in the fourth quarter worth $33,000. Abich Financial Wealth Management LLC bought a new stake in shares of Costco Wholesale in the third quarter worth $34,000. Finally, Collier Financial bought a new stake in shares of Costco Wholesale in the third quarter worth $35,000. Institutional investors own 68.48% of the company's stock.

Insider Activity

In other news, EVP Claudine Adamo sold 730 shares of the business's stock in a transaction on Monday, March 9th. The shares were 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 approximately $6,139,485.42. The trade was a 10.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Company insiders own 0.10% of the company's stock.

Wall Street Analysts Forecast Growth

COST has been the subject of a number of research analyst reports. The Goldman Sachs Group dropped their price target on shares of Costco Wholesale from $1,171.00 to $1,088.00 and set a "buy" rating for the company in a research note on Friday, March 6th. Mizuho lifted their price objective on shares of Costco Wholesale from $1,065.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Thursday, April 16th. Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $1,192.00 price objective on shares of Costco Wholesale in a report on Tuesday, May 12th. DA Davidson reaffirmed a "neutral" rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a report on Friday, April 10th. Finally, Wells Fargo & Company lifted their price objective on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Thursday, April 9th. Twenty-one investment 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. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $1,051.18.

Costco Wholesale Stock Performance

Costco Wholesale stock opened at $995.20 on Friday. The company has a market cap of $441.52 billion, a PE ratio of 51.75, a P/E/G ratio of 4.94 and a beta of 0.92. The company has a fifty day moving average price of $1,008.28 and a two-hundred day moving average price of $962.53. 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 12 month low of $844.06 and a 12 month high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.98 by ($0.05). Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The firm had revenue of $70.53 billion for the quarter, compared to analyst estimates of $69.68 billion. During the same period last year, the firm posted $4.28 EPS. Research analysts expect that Costco Wholesale Corporation will post 20.33 earnings per share for the current year.

Costco Wholesale Increases Dividend

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

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco reported stronger-than-expected sales, including U.S. same-store sales growth of 9.8% and adjusted comparable sales up 6.6%, showing that demand remains resilient even in a pressured consumer environment.
• Positive Sentiment: Revenue came in above Wall Street expectations, with $70.53 billion in quarterly sales versus estimates of $69.68 billion, reinforcing the company’s ability to keep growing at scale.
• Positive Sentiment: Membership and gas-related traffic appear to be supporting results, with higher fuel prices bringing more shoppers into warehouses and boosting basket sizes and same-store sales.
• Neutral Sentiment: EPS of $4.93 was slightly below the consensus estimate of $4.98, making the report mixed rather than uniformly strong, even though profits still improved year over year.
• Neutral Sentiment: Several pre-earnings articles framed Costco as a high-quality defensive retailer with a premium valuation, suggesting investors may continue to focus on whether the stock can justify its elevated multiple.
• Negative Sentiment: The small earnings miss could temper enthusiasm in the near term, especially given the stock’s recent run-up and the market’s high expectations heading into the print.

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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