Hodges Capital Management Inc. Increases Stock Holdings in Costco Wholesale Corporation $COST

Key Points

• Hodges Capital Management boosted its Costco stake by 65% in the fourth quarter, adding 2,150 shares and bringing its total to 5,457 shares worth about $4.7 million.
• Institutional interest in Costco remains strong overall, with hedge funds and other investors holding 68.48% of the stock and several firms making large new or expanded positions.
• Costco continues to receive mixed but generally positive attention: analysts have mostly maintained Buy or similar ratings, while the company also reported strong sales growth and raised its quarterly dividend to $1.47 per share.

Hodges Capital Management Inc. increased its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 65.0% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 5,457 shares of the retailer's stock after buying an additional 2,150 shares during the quarter. Hodges Capital Management Inc.'s holdings in Costco Wholesale were worth $4,706,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in COST. Norges Bank purchased 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 valued at $980,857,000 after purchasing 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 valued at $2,893,697,000 after purchasing 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 valued at $462,265,000 after purchasing an additional 346,208 shares during the last quarter. Finally, Deutsche Bank AG grew its stake in Costco Wholesale by 25.7% during the 4th quarter. Deutsche Bank AG now owns 1,414,746 shares of the retailer's stock valued at $1,219,992,000 after purchasing an additional 289,497 shares during the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Key Costco Wholesale News

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

• Positive Sentiment: Jim Cramer said investors “buy some here,” reinforcing a bullish view on Costco as a long-term holding despite a tougher consumer backdrop. Article title
• Positive Sentiment: Costco reported strong May net sales growth, including a 14.5% year-over-year increase, and one article noted digital sales jumped 21% while gas volumes hit a record, signaling healthy demand across key categories. Article title
• Positive Sentiment: Coverage highlighted Costco’s continued membership and traffic strength, with analysts and commentators pointing to upside and strong institutional interest in the stock. Article title
• Neutral Sentiment: Costco is also drawing attention for ESG and governance reasons after CEO Ron Vachris was recognized for board diversity leadership, which may matter to some investors but is not an immediate earnings driver. Article title
• Negative Sentiment: Costco is fighting a class-action lawsuit over its $5 rotisserie chicken, with plaintiffs alleging misleading “no preservatives” marketing, creating a potential reputational and legal overhang. Article title
• Negative Sentiment: Some commentary also suggests Costco may face tougher comparisons in a price-sensitive consumer environment, with rivals like Dollar Tree seen as having a pricing advantage on smaller-pack items. Article title

Analysts Set New Price Targets

Several analysts have weighed in on the company. The Goldman Sachs Group boosted their price target on Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research note on Friday, May 29th. Weiss Ratings upgraded Costco Wholesale from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, June 4th. Roth Mkm boosted their price target on Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a research note on Friday, May 29th. Raymond James Financial boosted their price target on Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an "outperform" rating in a research note on Friday, March 6th. Finally, BTIG Research reiterated a "buy" rating and set a $1,125.00 price target on shares of Costco Wholesale in a research note on Friday, May 29th. Twenty-two 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. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $1,060.41.

Costco Wholesale Stock Performance

NASDAQ COST opened at $983.37 on Thursday. The stock has a market capitalization of $436.10 billion, a price-to-earnings ratio of 49.47, a PEG ratio of 4.69 and a beta of 0.88. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The stock has a 50-day moving average of $1,006.04 and a 200 day moving average of $966.09.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released 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). The business had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same period in the previous year, the company posted $4.28 EPS. Sell-side analysts anticipate that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors 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 0.6%. The ex-dividend date of this dividend was Friday, May 1st. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's payout ratio is currently 29.58%.

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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