Hsbc Holdings PLC Trims Stake in Costco Wholesale Corporation $COST

Key Points

• HSBC Holdings PLC trimmed its Costco stake by 1.1% in the fourth quarter, selling 12,967 shares and ending with 1,131,391 shares valued at about $975.4 million.
• Institutional ownership remains high, with hedge funds and other institutional investors holding 68.48% of Costco’s shares, while several firms recently increased their positions.
• Analyst sentiment is broadly positive: Costco has a consensus rating of “Moderate Buy,” with an average price target of $1,061.45, even as some firms remain neutral amid valuation concerns.

Hsbc Holdings PLC lowered its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1.1% in the 4th quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 1,131,391 shares of the retailer's stock after selling 12,967 shares during the period. Costco Wholesale accounts for about 0.6% of Hsbc Holdings PLC's investment portfolio, making the stock its 24th largest holding. Hsbc Holdings PLC owned about 0.25% of Costco Wholesale worth $975,424,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Brighton Jones LLC grew its position in shares of Costco Wholesale by 12.3% in the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock worth $18,165,000 after buying an additional 2,172 shares during the period. Revolve Wealth Partners LLC increased its stake in shares of Costco Wholesale by 13.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock worth $1,029,000 after acquiring an additional 130 shares in the last quarter. Sivia Capital Partners LLC lifted its position in Costco Wholesale by 4.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock valued at $3,814,000 after acquiring an additional 165 shares during the period. Pinnacle Wealth Planning Services Inc. lifted its position in Costco Wholesale by 1.1% during the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock valued at $2,089,000 after acquiring an additional 23 shares during the period. Finally, Schnieders Capital Management LLC. boosted its stake in Costco Wholesale by 2.2% during the second quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock worth $8,416,000 after acquiring an additional 182 shares in the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Oppenheimer raised their target price on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a research note on Tuesday, May 19th. JPMorgan Chase & Co. boosted their price target on Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an "overweight" rating in a research report on Friday, April 17th. Evercore set a $1,100.00 price target on Costco Wholesale in a research note on Monday, March 2nd. BMO Capital Markets raised their price objective on Costco Wholesale from $1,175.00 to $1,315.00 and gave the company an "outperform" rating in a research report on Friday, March 6th. Finally, Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Costco Wholesale presently has a consensus rating of "Moderate Buy" and an average price target of $1,061.45.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco’s latest operating update showed strong momentum, with comparable sales up 9.8%, membership fees rising 10.7%, and digitally enabled sales jumping 21.5%, reinforcing the company’s durable growth story. Prediction: Costco Will Trade At This Price in 2027
• Positive Sentiment: Analysts and commentators continue to highlight Costco’s competitive advantages, loyal membership base, and ongoing technology investments to improve the shopping experience and ease customer pain points like parking. Costco tackles major frustration for members
• Positive Sentiment: Several recent articles frame the stock weakness as a possible buying opportunity, pointing to Costco’s resilient business model and long-term compounding potential. Why Weakness in Dividend-Paying Costco Stock Is a Strong Buying Opportunity
• Neutral Sentiment: Fresh media coverage around Costco products, store hours, and local development approvals is supportive of brand visibility, but these items are unlikely to materially move the stock on their own. Is Costco open on Juneteenth?
• Negative Sentiment: Investor sentiment remains cautious because Costco’s premium valuation is being questioned amid macro uncertainty and sticky inflation, with one recent note saying growth may not fully justify the stock’s price. Should You Buy Costco Stock for the Long Haul? Here's the Honest Answer.
• Negative Sentiment: Analyst disagreement is also weighing on the shares, with one report noting Costco fell after Citi and Bernstein issued conflicting views on the big-box retailer. Costco Stock (COST) Drops as Analysts Can’t Agree on the Big-Box Retailer

Costco Wholesale Price Performance

NASDAQ:COST opened at $951.45 on Friday. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The firm has a market cap of $421.95 billion, a P/E ratio of 47.86, a P/E/G ratio of 4.61 and a beta of 0.88. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The firm has a 50-day simple moving average of $1,000.19 and a two-hundred day simple moving average of $969.01.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The firm had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. During the same quarter in the prior year, the company posted $4.28 EPS. Analysts predict that Costco Wholesale Corporation will post 20.38 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently disclosed 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 was Friday, May 1st. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio (DPR) is presently 29.58%.

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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