Cullen Frost Bankers Inc. Lowers Stock Position in Costco Wholesale Corporation $COST

Key Points

• Cullen Frost Bankers Inc. trimmed its Costco position by 1.1% in the fourth quarter, selling 978 shares and ending the period with 90,432 shares valued at about $77.98 million.
• Institutional interest in Costco remains strong overall, with hedge funds and other investors holding 68.48% of the stock; several firms notably boosted their stakes during recent quarters.
• Wall Street is still broadly positive on Costco, with 22 Buy ratings and a consensus Moderate Buy rating, while the company also reported strong quarterly results and recently raised its dividend to $1.47 per share.

Cullen Frost Bankers Inc. cut its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1.1% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 90,432 shares of the retailer's stock after selling 978 shares during the period. Costco Wholesale accounts for about 0.9% of Cullen Frost Bankers Inc.'s holdings, making the stock its 28th biggest position. Cullen Frost Bankers Inc.'s holdings in Costco Wholesale were worth $77,983,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Assenagon Asset Management S.A. lifted its holdings in shares of Costco Wholesale by 1,586.8% during the fourth quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer's stock worth $980,857,000 after purchasing an additional 1,070,005 shares during the period. Amundi lifted its holdings in shares of Costco Wholesale by 45.0% during the third quarter. Amundi now owns 3,176,606 shares of the retailer's stock worth $2,893,697,000 after purchasing an additional 986,182 shares during the period. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Costco Wholesale by 182.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 536,059 shares of the retailer's stock worth $462,265,000 after purchasing an additional 346,208 shares during the period. Voloridge Investment Management LLC lifted its holdings in shares of Costco Wholesale by 112.2% during 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 during the period. Finally, PFA Pension Forsikringsaktieselskab acquired a new stake in shares of Costco Wholesale during the fourth quarter worth $213,362,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on COST. Truist Financial increased their price target on Costco Wholesale from $926.00 to $977.00 and gave the stock a "hold" rating in a report on Friday, March 6th. BMO Capital Markets increased their price target on Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an "outperform" rating in a report on Friday, March 6th. Deutsche Bank Aktiengesellschaft increased their price target on Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. UBS Group set a $1,175.00 price target on Costco Wholesale in a report on Friday, March 6th. Finally, Bank of America began coverage on Costco Wholesale in a report on Friday, February 27th. They set a "buy" rating and a $1,185.00 price target for the company. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Costco Wholesale currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,049.27.

Costco Wholesale Price Performance

Costco Wholesale stock opened at $1,094.32 on Wednesday. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The business has a fifty day moving average of $1,004.71 and a two-hundred day moving average of $957.59. The company has a market cap of $485.50 billion, a P/E ratio of 56.91, a price-to-earnings-growth ratio of 5.30 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The company had revenue of $69.60 billion during the quarter, compared to the consensus estimate of $68.96 billion. During the same quarter last year, the company earned $4.02 earnings per share. Costco Wholesale's quarterly revenue was up 9.2% compared to the same quarter last year. As a group, analysts predict that Costco Wholesale Corporation will post 20.31 earnings per share for the current fiscal 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 represents a $5.88 dividend on an annualized basis and a yield of 0.5%. 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. Costco Wholesale's dividend payout ratio is 30.58%.

Insider Buying and Selling

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the firm's stock in a transaction 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 owned 6,121 shares of the company's stock, valued at approximately $6,139,485.42. This trade 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 the SEC website. Company insiders own 0.10% of the company's stock.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco raised its quarterly dividend by 13% to $1.47 per share, marking 22 straight years of dividend increases and signaling confidence in cash generation. This helped push shares to new highs. Where Will Costco Stock Be In 2028?
• Positive Sentiment: Analysts turned more constructive ahead of the company’s May 28 earnings report, with Oppenheimer lifting its price target to $1,160 after strong April sales and the dividend hike. Costco (COST) Stock Gains as Analysts Raise Price Targets Before Quarterly Report
• Positive Sentiment: Costco’s April sales reinforced its defensive appeal, with 11.6% comparable sales growth and 18.8% digital sales growth as value-focused shoppers kept buying in bulk. Costco's April Sales Reinforce Its Case as the Ultimate Defensive Stock
• Positive Sentiment: New food-court items, including chicken strips, are generating customer buzz and social media attention that may support traffic and membership loyalty. Forget chicken fingers, Costco quietly adds new food court item
• Neutral Sentiment: Several articles discuss whether Costco should split its stock now that shares are above $1,000, but management has not announced any split. Costco's Stock Keeps Breaking the $1,000 Threshold -- Don't Expect a Stock Split

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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