iA Global Asset Management Inc. Decreases Stock Holdings in Costco Wholesale Corporation $COST

Key Points

• iA Global Asset Management cut its Costco stake by 18.6% in the fourth quarter, selling 12,684 shares and leaving it with 55,529 shares worth about $47.9 million.
• Despite that sale, Costco continues to attract broad institutional interest, with several firms significantly increasing positions and hedge funds and other institutions owning 68.48% of the stock.
• Costco reported better-than-expected earnings and revenue, raised its quarterly dividend to $1.47 per share, and still has a generally bullish Street rating, though its premium valuation remains a concern for some analysts.

iA Global Asset Management Inc. reduced its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 18.6% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 55,529 shares of the retailer's stock after selling 12,684 shares during the period. iA Global Asset Management Inc.'s holdings in Costco Wholesale were worth $47,885,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of COST. Assenagon Asset Management S.A. lifted its position in shares of 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 worth $980,857,000 after purchasing an additional 1,070,005 shares during the last quarter. Amundi lifted its position in shares of Costco Wholesale by 45.0% during the 3rd 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 last quarter. Northwestern Mutual Wealth Management Co. lifted its position in Costco Wholesale by 182.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 536,059 shares of the retailer's stock valued at $462,265,000 after acquiring an additional 346,208 shares during the last quarter. Voloridge Investment Management LLC lifted its position in Costco Wholesale by 112.2% in the third quarter. Voloridge Investment Management LLC now owns 477,425 shares of the retailer's stock valued at $441,919,000 after acquiring an additional 252,453 shares during the last quarter. Finally, PFA Pension Forsikringsaktieselskab purchased a new stake in Costco Wholesale in the fourth quarter valued at $213,362,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

More Costco Wholesale News

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

• Positive Sentiment: Costco opened a long-awaited warehouse in New Braunfels, Texas, adding to its store base and reinforcing investor confidence in continued unit growth and market expansion. Long-awaited Costco Wholesale now open in New Braunfels
• Positive Sentiment: Another report confirmed the New Braunfels store is now open for business, underscoring Costco’s ongoing rollout of new locations that can support membership and revenue growth. Costco Wholesale now open for business in New Braunfels
• Positive Sentiment: Analysts and market commentary continue to favor Costco’s membership-driven model, saying it benefits from resilient grocery demand and supports steady growth even in a volatile retail backdrop. WMT or COST: Which Retail Giant Looks More Attractive Now?
• Positive Sentiment: Costco’s purchase of a 55-acre property in Florida suggests the company is still investing in significant long-term store growth, which investors typically view as a sign of confidence in future demand. Costco Just Signed Off on a Massive Retail Real Estate Deal in Florida. Here's What Investors Need to Know About Costco's Store Growth Goals.
• Neutral Sentiment: Articles debating whether Costco is still a good buy after its multi-year rally mostly reinforce that the stock remains a quality business but is expensive, making the reaction more about valuation than any new fundamental change. Is It Too Late To Consider Costco Wholesale (COST) After Its Strong Multi Year Rally
• Neutral Sentiment: Coverage on Costco’s food court chicken tender launch is generating consumer buzz, but the main takeaway is mixed, with some concerns about whether it replaces a favorite item rather than clearly boosting the investment outlook. Costco food court chicken tender launch sparks concerns over item replacement
• Negative Sentiment: Some recent commentary flags Costco’s premium valuation and argues the stock may be difficult to justify at current levels, which can temper enthusiasm despite strong fundamentals. Costco: Strong Fundamentals Meet Growth Premium - A Hold Entering FQ3'26
• Negative Sentiment: Another Seeking Alpha piece argues there is a reason to sell Costco beyond valuation, adding to the cautious tone around the stock’s elevated price level. Costco: Another Reason To Sell (Besides The Valuation)

Insider Activity at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of the company's 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 completion of the sale, the executive vice president directly owned 6,121 shares of the company's stock, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.10% of the company's stock.

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $1,048.95 on Friday. The company has a 50-day simple moving average of $1,000.90 and a 200-day simple moving average of $955.06. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,067.08. 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 stock has a market capitalization of $465.37 billion, a price-to-earnings ratio of 54.55, a PEG ratio of 5.16 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced 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 net margin of 2.99% and a return on equity of 28.57%. The business had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. During the same period in the prior year, the company earned $4.02 earnings per share. The business's revenue was up 9.2% compared to the same quarter last year. On average, analysts predict that Costco Wholesale Corporation will post 20.31 EPS for the current year.

Costco Wholesale Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were issued a $1.47 dividend. 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. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio is currently 30.58%.

Wall Street Analyst Weigh In

COST has been the subject of a number of research reports. Robert W. Baird set a $1,100.00 price target on shares of Costco Wholesale in a research report on Thursday, February 5th. TD Cowen reissued a "buy" rating on shares of Costco Wholesale in a research report on Friday, March 6th. Rothschild & Co Redburn boosted their price target on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the company a "neutral" rating in a research report on Tuesday, February 17th. UBS Group set a $1,175.00 price target on shares of Costco Wholesale in a research report on Friday, March 6th. Finally, Wells Fargo & Company boosted their price target on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the company an "equal weight" rating in a research report on Thursday, April 9th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $1,047.27.

Costco Wholesale 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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