Costco Wholesale Corporation $COST Stock Position Lowered by Bridges Investment Management Inc.

Key Points

• Bridges Investment Management trimmed its Costco stake by 4.3% in the fourth quarter, though it still held 45,265 shares valued at about $39.0 million at the end of the period.
• Costco recently posted a strong quarter with revenue above expectations, but EPS narrowly missed estimates and the stock has struggled to rally afterward as investors focus on valuation.
• The company also raised its quarterly dividend to $1.47 per share from $1.30, while analysts remain mostly positive with a consensus rating of Moderate Buy and an average target price of about $1,056.

Bridges Investment Management Inc. lessened its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 4.3% during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 45,265 shares of the retailer's stock after selling 2,036 shares during the period. Bridges Investment Management Inc.'s holdings in Costco Wholesale were worth $39,034,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Hurley Capital LLC raised 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 in the last quarter. Entrust Financial LLC acquired a new stake in shares of Costco Wholesale during the fourth quarter worth $31,000. Joseph Group Capital Management acquired a new stake in shares of Costco Wholesale during the fourth quarter worth $33,000. Abich Financial Wealth Management LLC acquired a new stake in shares of Costco Wholesale during the third quarter worth $34,000. Finally, Collier Financial acquired a new stake in shares of Costco Wholesale during the third quarter worth $35,000. Institutional investors own 68.48% of the company's stock.

Trending Headlines about Costco Wholesale

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

Costco Wholesale Stock Performance

Shares of COST stock 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 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 capitalization of $423.36 billion, a price-to-earnings ratio of 48.00, a P/E/G ratio of 4.59 and a beta of 0.88. The stock's fifty day simple moving average is $1,007.23 and its 200-day simple moving average is $963.04.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly 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 net margin of 3.01% and a return on equity of 28.72%. The business had revenue of $70.53 billion for the quarter, compared to analysts' expectations of $70.12 billion. During the same quarter in the prior year, the firm posted $4.28 EPS. On average, sell-side analysts predict that Costco Wholesale Corporation will post 20.36 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The firm 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 is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Friday, May 1st. Costco Wholesale's dividend payout ratio is presently 30.58%.

Insider Buying and Selling at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of Costco Wholesale 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 owned 6,121 shares in the company, 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 filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.10% of the company's stock.

Wall Street Analyst Weigh In

COST has been the topic of a number of recent analyst reports. Guggenheim reaffirmed a "neutral" rating on shares of Costco Wholesale in a research report on Monday. Daiwa Securities Group boosted their target price on Costco Wholesale from $917.00 to $975.00 and gave the stock a "neutral" rating in a research report on Tuesday, March 10th. TD Cowen reaffirmed a "buy" rating on shares of Costco Wholesale in a research report on Friday, March 6th. UBS Group boosted their target price on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a research report on Wednesday, May 20th. Finally, BMO Capital Markets boosted their target price on 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. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $1,056.32.

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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