Costco Wholesale Corporation $COST Stake Lifted by Capital International Investors

Key Points

• Capital International Investors raised its Costco stake by 21.6% in the fourth quarter, buying 113,842 more shares and bringing its holdings to 640,367 shares worth about $552.2 million.
• Other large institutions also added to COST, including Norges Bank and several asset managers, underscoring strong institutional interest in the stock.
• Costco continues to draw positive analyst attention, with multiple firms lifting price targets and the consensus rating remaining “Moderate Buy” with an average target of $1,060.41.

Capital International Investors increased its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 21.6% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 640,367 shares of the retailer's stock after buying an additional 113,842 shares during the quarter. Capital International Investors owned about 0.14% of Costco Wholesale worth $552,236,000 at the end of the most recent quarter.

A number of other institutional investors have also recently added to or reduced their stakes in COST. Norges Bank bought a new position in Costco Wholesale during the 4th quarter worth $5,195,415,000. Assenagon Asset Management S.A. grew its stake in Costco Wholesale by 1,586.8% during the 4th 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 grew its stake in Costco Wholesale by 45.0% during the 3rd 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. grew its stake in Costco Wholesale by 182.4% during the 4th 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 grew 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 purchasing an additional 252,453 shares in the last quarter. 68.48% of the stock is currently owned by institutional investors.

Costco Wholesale Stock Performance

Shares of Costco Wholesale stock opened at $971.87 on Monday. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The firm has a market cap of $431.00 billion, a price-to-earnings ratio of 48.89, a price-to-earnings-growth ratio of 4.71 and a beta of 0.88. The business has a fifty day simple moving average of $1,006.71 and a 200-day simple moving average of $964.35. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share 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 analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same quarter last year, the company earned $4.28 EPS. On average, equities analysts forecast that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were issued a $1.47 dividend. 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 was Friday, May 1st. Costco Wholesale's payout ratio is currently 29.58%.

Analysts Set New Price Targets

Several research analysts have recently issued reports on COST shares. The Goldman Sachs Group increased their price target on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a research note on Friday, May 29th. Sanford C. Bernstein increased their price target on Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research note on Friday, May 29th. Bank of America increased their price target on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a research note on Friday, May 29th. TD Cowen reissued a "buy" rating and issued a $1,175.00 price target on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Finally, Raymond James Financial increased their price target on Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a research note on Friday, March 6th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Costco Wholesale currently has an average rating of "Moderate Buy" and a consensus target price of $1,060.41.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco posted another strong month, with May net sales up 14.5% year over year to $24.01 billion and comparable sales still running at a healthy pace, reinforcing the view that traffic and spending trends remain solid. Costco Wholesale Corporation Reports May Sales Results
• Positive Sentiment: Analysts continued to point to Costco’s defensive fundamentals, strong U.S. comparable sales, fuel-driven traffic, and growing digital business as reasons for optimism on the stock. Costco Stock (COST) Keeps Wall Street Split despite Accelerating Sales
• Positive Sentiment: Costco’s ability to hold up during the broader market sell-off underscored its reputation as a defensive retailer, which may have helped support investor interest. Why Costco Stock Held Steady During Friday's Market Sell-Off
• Neutral Sentiment: Several articles framed Costco as a high-quality long-term compounder, but also emphasized that its premium valuation leaves less room for error if growth slows. Costco stock price shocks market despite major blowout quarter
• Neutral Sentiment: Costco’s valuation remains a debate point on Wall Street, with some analysts maintaining Buy ratings and high price targets while others argue the stock already reflects much of the good news. Costco: Robust Comps and Reaccelerating Digital Sales Support Buy Rating, Price Target Reaffirmed at $1275
• Negative Sentiment: One recent note argued that Costco’s strong quarter was not enough to offset valuation worries, suggesting investors may be hesitant to pay up after the recent sales-driven rally. Costco's Strong Quarter Still Leaves Investors with a Valuation Problem

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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