Investment House LLC Reduces Stake in Costco Wholesale Corporation $COST

Key Points

• Investment House LLC trimmed its Costco stake by 1.7% in the fourth quarter, but still held 63,541 shares worth about $54.8 million, making COST its 8th-largest holding.
• Costco continued to attract institutional interest overall, with several large funds significantly increasing their positions and 68.48% of shares now owned by institutional investors.
• The company remains strong operationally, reporting better-than-expected quarterly earnings and revenue and recently raising its dividend by 13% to $1.47 per share, helping push the stock to new highs.

Investment House LLC cut its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1.7% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 63,541 shares of the retailer's stock after selling 1,103 shares during the quarter. Costco Wholesale comprises 2.6% of Investment House LLC's investment portfolio, making the stock its 8th biggest holding. Investment House LLC's holdings in Costco Wholesale were worth $54,794,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Assenagon Asset Management S.A. raised its stake in 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 valued at $980,857,000 after buying an additional 1,070,005 shares during the last quarter. Amundi raised its stake in Costco Wholesale by 45.0% during the third quarter. Amundi now owns 3,176,606 shares of the retailer's stock valued at $2,893,697,000 after buying an additional 986,182 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in shares of Costco Wholesale by 182.4% in 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 last quarter. 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 valued at $441,919,000 after purchasing an additional 252,453 shares in the last quarter. Finally, PFA Pension Forsikringsaktieselskab bought a new position in shares of Costco Wholesale during the fourth quarter valued at $213,362,000. 68.48% of the stock is currently owned by institutional investors.

Key Costco Wholesale News

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

Insider Buying and Selling

In related news, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the completion of the sale, the executive vice president owned 6,121 shares in the company, valued at approximately $6,139,485.42. This 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 Stock Up 1.7%

Costco Wholesale stock opened at $1,094.32 on Wednesday. The stock has a market cap of $485.50 billion, a PE ratio of 56.91, a price-to-earnings-growth ratio of 5.30 and a beta of 0.92. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The stock has a fifty day moving average of $1,004.71 and a 200 day moving average of $957.59.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, beating analysts' consensus estimates of $4.55 by $0.03. The company had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.Costco Wholesale's revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $4.02 earnings per share. As a group, sell-side analysts predict that Costco Wholesale Corporation will post 20.31 EPS for the current 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 given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a yield of 0.5%. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date was Friday, May 1st. Costco Wholesale's dividend payout ratio (DPR) is currently 30.58%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on COST shares. BMO Capital Markets lifted their price objective 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. Telsey Advisory Group boosted their target price on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an "outperform" rating in a research report on Thursday, April 9th. Truist Financial boosted their target price on Costco Wholesale from $926.00 to $977.00 and gave the stock a "hold" rating in a research report on Friday, March 6th. Sanford C. Bernstein reissued an "outperform" rating and issued a $1,192.00 target price on shares of Costco Wholesale in a research report on Tuesday, May 12th. Finally, Deutsche Bank Aktiengesellschaft boosted their target price on Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $1,049.27.

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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