Jennison Associates LLC Sells 596,481 Shares of Costco Wholesale Corporation $COST

Key Points

• Jennison Associates sold 596,481 shares of Costco, cutting its stake by 21.1% to 2,227,635 shares valued at roughly $1.92 billion, with Costco representing about 1.2% of Jennison’s portfolio.
• Costco raised its quarterly dividend to $1.47 (annualized $5.88), with an ex-dividend date of May 1 and payment on May 15, implying a yield of about 0.6% and a payout ratio near 27%.
• Wall Street remains broadly positive—MarketBeat shows a "Moderate Buy" consensus with an average target around $1,045.97 and multiple firms raising targets, though the stock trades at a premium (P/E ~52.6) near recent highs.

Jennison Associates LLC lessened its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 21.1% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 2,227,635 shares of the retailer's stock after selling 596,481 shares during the period. Costco Wholesale makes up about 1.2% of Jennison Associates LLC's investment portfolio, making the stock its 24th biggest holding. Jennison Associates LLC owned about 0.50% of Costco Wholesale worth $1,920,979,000 at the end of the most recent reporting period.

Other large investors have also recently bought and sold shares of the company. Hurley Capital LLC increased its stake in Costco Wholesale by 120.0% in the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock valued at $31,000 after purchasing an additional 18 shares in the last quarter. Joseph Group Capital Management acquired a new position in shares of Costco Wholesale in the fourth quarter valued at approximately $33,000. Abich Financial Wealth Management LLC acquired a new position in shares of Costco Wholesale in the third quarter valued at approximately $34,000. Collier Financial acquired a new position in shares of Costco Wholesale in the third quarter valued at approximately $35,000. Finally, AXS Investments LLC acquired a new position in shares of Costco Wholesale in the third quarter valued at approximately $36,000. Institutional investors own 68.48% of the company's stock.

Costco Wholesale News Summary

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

• Positive Sentiment: Analysts & research highlight Costco’s widening price advantage vs. traditional grocers, supporting share gains through stronger traffic and member retention. Read More.
• Positive Sentiment: Investor/critic pieces are bullish — e.g., a 247WallSt columnist outlines why they keep buying COST, reinforcing momentum-driven retail interest. Read More.
• Positive Sentiment: Broker/upside revisions and dividend moves add fundamental support: Erste raised FY2027 EPS assumptions slightly, and Costco was listed among firms increasing dividends. Read More.
• Positive Sentiment: Analysts continue to flag Costco as the most price-competitive club retailer versus peers (Walmart, Amazon), which helps defend market share in a price-sensitive consumer environment. Read More.
• Neutral Sentiment: Costco adjusted its long-running $1.50 hot-dog combo (menu/composition changes were reported) but kept the price, a symbolic move with limited direct earnings impact—more PR than profit driver. Read More.
• Neutral Sentiment: New product introductions and merchandising wins (e.g., Häagen‑Dazs flavor rollouts at Costco) support foot traffic but are incremental to core membership economics. Read More.
• Neutral Sentiment: Market commentators note Costco’s premium valuation (Cramer: “never ever cheap”), a reminder that near-term upside could be capped absent accelerating comps or margin beats. Read More.
• Negative Sentiment: Competitive divergence: some analysts argue Walmart’s evolving high‑margin ad/data business gives it more near-term upside than Costco, highlighting relative growth and multiple expansion risks for COST. That view may temper upside for investors looking for multi-bagger returns. Read More.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. JPMorgan Chase & Co. upped their price target on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an "overweight" rating in a report on Friday, April 17th. Evercore set a $1,100.00 target price on shares of Costco Wholesale in a report on Monday, March 2nd. Deutsche Bank Aktiengesellschaft increased their target price on shares of Costco Wholesale from $1,103.00 to $1,104.00 and gave the stock a "buy" rating in a report on Thursday, April 9th. Telsey Advisory Group increased their target price on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an "outperform" rating in a report on Thursday, April 9th. Finally, Gordon Haskett increased their target price on shares of Costco Wholesale from $1,000.00 to $1,100.00 in a report on Tuesday, February 3rd. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $1,045.97.

Costco Wholesale Stock Performance

Shares of COST opened at $1,010.71 on Thursday. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,067.08. The firm has a fifty day simple moving average of $996.40 and a 200 day simple moving average of $949.46. The stock has a market capitalization of $448.40 billion, a price-to-earnings ratio of 52.60, a PEG ratio of 4.92 and a beta of 0.99. 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 (NASDAQ:COST - Get Free Report) last announced its quarterly 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. The firm had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The company's revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter last year, the company posted $4.02 earnings per share. Research analysts forecast that Costco Wholesale Corporation will post 20.31 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be paid a $1.47 dividend. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date is Friday, May 1st. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is 27.04%.

Insider Transactions at Costco Wholesale

In related news, EVP Claudine Adamo sold 730 shares of the firm'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 in the company, valued at approximately $6,139,485.42. This trade represents a 10.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. 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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