Employees Retirement System of Texas Acquires 28,566 Shares of Costco Wholesale Corporation $COST

Key Points

• Employees Retirement System of Texas increased its Costco stake by 29% in the fourth quarter, buying 28,566 more shares and bringing its total holdings to 126,915 shares valued at about $109.4 million.
• Several other large institutional investors also boosted or maintained significant positions in Costco, and 68.48% of the stock is now owned by institutions.
• Costco recently topped earnings expectations, reported 9.2% year-over-year revenue growth, and raised its quarterly dividend to $1.47 per share from $1.30.

Employees Retirement System of Texas grew its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 29.0% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 126,915 shares of the retailer's stock after buying an additional 28,566 shares during the quarter. Costco Wholesale accounts for about 0.9% of Employees Retirement System of Texas' holdings, making the stock its 24th biggest position. Employees Retirement System of Texas' holdings in Costco Wholesale were worth $109,444,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Vanguard Group Inc. increased its holdings in Costco Wholesale by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer's stock worth $37,615,889,000 after purchasing an additional 165,349 shares in the last quarter. Amundi lifted its holdings in shares of Costco Wholesale by 45.0% in the third quarter. Amundi now owns 3,176,606 shares of the retailer's stock valued at $2,893,697,000 after purchasing an additional 986,182 shares in the last quarter. Fisher Asset Management LLC lifted its holdings in shares of Costco Wholesale by 1.0% in the fourth quarter. Fisher Asset Management LLC now owns 3,176,286 shares of the retailer's stock valued at $2,739,039,000 after purchasing an additional 31,045 shares in the last quarter. American Century Companies Inc. boosted its position in shares of Costco Wholesale by 8.5% during the third quarter. American Century Companies Inc. now owns 1,619,703 shares of the retailer's stock valued at $1,499,246,000 after buying an additional 127,495 shares during the last quarter. Finally, Principal Financial Group Inc. grew its holdings in Costco Wholesale by 0.7% during the third quarter. Principal Financial Group Inc. now owns 1,210,837 shares of the retailer's stock worth $1,120,787,000 after buying an additional 8,259 shares in the last quarter. 68.48% of the stock is owned by institutional investors.

Costco Wholesale Stock Performance

Shares of Costco Wholesale stock opened at $1,002.93 on Wednesday. The business's fifty day simple moving average is $1,008.26 and its 200 day simple moving average is $961.45. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The firm has a market capitalization of $444.95 billion, a P/E ratio of 52.15, a price-to-earnings-growth ratio of 5.06 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. The firm had revenue of $69.60 billion during the quarter, compared to the consensus estimate of $68.96 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The business's revenue for the quarter was up 9.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $4.02 EPS. As a group, analysts anticipate that Costco Wholesale Corporation will post 20.33 EPS for the current year.

Costco Wholesale Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were given a dividend of $1.47 per share. The ex-dividend date was Friday, May 1st. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is currently 30.58%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Oppenheimer increased their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a research report on Tuesday, May 19th. Citigroup reaffirmed a "neutral" rating on shares of Costco Wholesale in a report on Friday, February 20th. JPMorgan Chase & Co. upped their target price 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. Rothschild & Co Redburn increased their target price on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the company a "neutral" rating in a report on Tuesday, February 17th. Finally, Sanford C. Bernstein reissued an "outperform" rating and set a $1,192.00 price target on shares of Costco Wholesale in a research report on Tuesday, May 12th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $1,052.60.

More Costco Wholesale News

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

• Positive Sentiment: Bank of America reiterated a Buy rating and kept its $1,185 price target, reinforcing the view that Costco (COST) still has upside if it delivers another solid quarter. Article Title
• Positive Sentiment: Analysts and options traders expect a meaningful post-earnings move, highlighting how much attention Costco is drawing heading into results. Article Title
• Positive Sentiment: Recent coverage points to strong membership growth, digital gains, and AI-driven personalization as drivers of continued sales momentum for Costco. Article Title
• Neutral Sentiment: Multiple previews say Costco is well positioned for earnings, but its premium valuation may limit enthusiasm unless the company beats expectations convincingly. Article Title
• Negative Sentiment: A federal jury ruled against Costco in a disability discrimination case, adding a legal and compliance overhang and potential extra costs from attorneys’ fees. Article Title
• Negative Sentiment: One article noted the shares are slipping ahead of earnings, reflecting investor caution and valuation concerns rather than a major operational setback. Article Title

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the sale, 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 is accessible through this link. Company insiders own 0.10% of the company's stock.

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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