Costco Wholesale Corporation $COST Stock Position Boosted by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon increased its Costco stake by 5.1% in the fourth quarter, adding 170,979 shares to bring its total to 3,518,341 shares worth about $3.03 billion.
• Costco’s latest earnings showed solid revenue growth but a slight EPS miss, with quarterly revenue of $70.53 billion versus estimates of $70.12 billion and EPS of $4.93 compared with $4.94 expected.
• Analysts remain broadly constructive: several firms raised price targets or reiterated buy ratings, and consensus sentiment stands at Moderate Buy with a target price of $1,056.32, even as the stock has pulled back after results.

Bank of New York Mellon Corp lifted its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 5.1% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 3,518,341 shares of the retailer's stock after acquiring an additional 170,979 shares during the period. Costco Wholesale accounts for approximately 0.5% of Bank of New York Mellon Corp's holdings, making the stock its 24th biggest position. Bank of New York Mellon Corp owned approximately 0.79% of Costco Wholesale worth $3,034,006,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. FORA Capital LLC acquired a new position in Costco Wholesale in the 3rd quarter worth about $2,781,000. World Investment Advisors increased its holdings in Costco Wholesale by 8.4% in the fourth quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock worth $15,835,000 after buying an additional 1,560 shares during the last quarter. Teacher Retirement System of Texas increased its holdings in Costco Wholesale by 24.5% in the fourth quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer's stock worth $121,098,000 after buying an additional 27,625 shares during the last quarter. Curtis Advisory Group LLC raised its position in Costco Wholesale by 56.7% during the fourth quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer's stock valued at $3,911,000 after acquiring an additional 1,641 shares in the last quarter. Finally, Mariner LLC lifted its stake in Costco Wholesale by 1.5% in the third quarter. Mariner LLC now owns 399,894 shares of the retailer's stock valued at $370,140,000 after acquiring an additional 5,937 shares during the last quarter. 68.48% of the stock is currently owned by institutional investors.

Costco Wholesale News Roundup

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

• Positive Sentiment: Costco reported robust fiscal Q3 results, including double-digit sales growth, strong comparable sales, and continued strength in memberships and digital operations, which supports the long-term investment case. Article Title
• Positive Sentiment: Jefferies said Costco’s value strategy, membership growth, and fuel business continue to support sales momentum, reinforcing confidence in the company’s operating model. Article Title
• Positive Sentiment: Analysts highlighted Costco’s strong traffic trends and larger baskets, suggesting the company is still gaining share with shoppers even as the stock weakens. Article Title
• Positive Sentiment: Costco’s record gas sales and surprisingly strong protein sales show continued demand across key categories, which may help offset concerns about slower overall momentum. Article Title
• Neutral Sentiment: Multiple market commentaries say Costco is attracting heavy investor attention after earnings, but the stock remains stuck in a post-results pullback as traders weigh the next catalyst. Article Title
• Neutral Sentiment: Several articles note that Costco’s stock has failed to rally after its strong quarter, implying investors may already have high expectations priced in. Article Title
• Negative Sentiment: Costco was downgraded in a blue-chip rankings update, adding to the cautious tone around the shares. Article Title
• Negative Sentiment: Commentary from Jim Cramer and other analysts suggested Costco could have done better, reinforcing concerns that the market expected even more from the latest report. Article Title
• Negative Sentiment: Market coverage says COST is falling despite record-breaking gas sales, underscoring that investors are focusing on valuation and the post-earnings setup rather than the headline growth. Article Title

Analyst Upgrades and Downgrades

COST has been the topic of several analyst reports. JPMorgan Chase & Co. increased their price target on shares of 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. BMO Capital Markets upped their price objective 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. Jefferies Financial Group reissued a "buy" rating and set a $1,050.00 target price on shares of Costco Wholesale in a research report on Thursday, March 5th. Telsey Advisory Group raised their target price on Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an "outperform" rating in a report on Thursday, April 9th. Finally, Evercore set a $1,100.00 price target on Costco Wholesale in a research report on Monday, March 2nd. Twenty-two research 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's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,056.32.

Costco Wholesale Price Performance

NASDAQ COST opened at $954.27 on Wednesday. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a fifty day simple moving average of $1,007.23 and a 200 day simple moving average of $963.04. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. The company has a market cap of $423.36 billion, a P/E ratio of 48.00, a P/E/G ratio of 4.59 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.72% and a net margin of 3.01%.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 prior year, the firm earned $4.28 EPS. On average, sell-side analysts predict that Costco Wholesale Corporation will post 20.36 EPS for the current year.

Costco Wholesale Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were issued a $1.47 dividend. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's payout ratio is 30.58%.

Insider Buying and Selling

In other 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 value of $732,204.60. Following the completion of the sale, the executive vice president directly owned 6,121 shares of the company's stock, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.10% of the stock is currently owned by corporate 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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