KBC Group NV Reduces Holdings in Costco Wholesale Corporation $COST

Key Points

• KBC Group NV reduced its stake in Costco by 13.1% in Q4, selling 20,446 shares and ending the quarter with 136,141 shares valued at about $117.4 million.
• Costco's board approved a 13% increase in the quarterly dividend to $1.47 (annualized $5.88), payable May 15, implying a yield near 0.6%.
• Analysts remain largely positive—several firms raised price targets and Costco recently beat EPS and revenue estimates—but the stock trades at a rich valuation (P/E around 51.2), which could constrain near-term upside.

KBC Group NV lowered its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 13.1% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 136,141 shares of the retailer's stock after selling 20,446 shares during the quarter. KBC Group NV's holdings in Costco Wholesale were worth $117,400,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Silver Oak Securities Incorporated grew its position in shares of Costco Wholesale by 49.3% in the 3rd quarter. Silver Oak Securities Incorporated now owns 3,780 shares of the retailer's stock worth $3,499,000 after acquiring an additional 1,248 shares in the last quarter. Permanent Capital Management LP acquired a new stake in shares of Costco Wholesale during the 3rd quarter valued at approximately $874,000. Exchange Traded Concepts LLC raised its position in shares of Costco Wholesale by 43.6% during the 3rd quarter. Exchange Traded Concepts LLC now owns 23,444 shares of the retailer's stock valued at $21,700,000 after acquiring an additional 7,116 shares in the last quarter. FORA Capital LLC bought a new position in Costco Wholesale during the third quarter worth $2,781,000. Finally, Curtis Advisory Group LLC boosted its holdings in Costco Wholesale by 56.7% in the fourth quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer's stock worth $3,911,000 after purchasing an additional 1,641 shares during the period. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, Director Susan L. Decker sold 458 shares of the business's stock in a transaction that occurred on Friday, January 16th. The stock was sold at an average price of $955.00, for a total transaction of $437,390.00. Following the completion of the transaction, the director directly owned 8,532 shares in the company, valued at approximately $8,148,060. The trade was a 5.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Teresa A. Jones sold 850 shares of the stock in a transaction that occurred on Wednesday, January 21st. The stock was sold at an average price of $986.26, for a total value of $838,321.00. Following the completion of the transaction, the executive vice president directly owned 4,228 shares of the company's stock, valued at $4,169,907.28. This trade represents a 16.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 2,038 shares of company stock valued at $2,007,916. Insiders own 0.10% of the company's stock.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Board approved a 13% increase in the quarterly cash dividend (from $1.30 to $1.47 per share; annualized $5.88), payable May 15 — a shareholder-friendly move that supports income investors and signals confidence in cash flow. GlobeNewswire: Dividend Announcement
• Positive Sentiment: Research houses (Telsey Advisory Group and Wells Fargo) raised price targets and reiterated positive ratings, citing steady execution — analyst upgrades and higher targets often lift sentiment and buying interest. Yahoo Finance: Telsey & Wells Fargo Raise Targets
• Positive Sentiment: Recent retail data show strong March sales and comp-store strength (including digital growth), reinforcing the view that Costco’s membership model continues to drive traffic and sales momentum. Zacks: Strong March Retail Sales
• Positive Sentiment: International expansion, especially strong performance in Japan (now a top market), highlights recurring membership growth and a path for overseas store openings to add incremental revenue. Yahoo Finance: Japan Growth
• Neutral Sentiment: Positive brand coverage (iconic U.S. positioning, $1.50 hot dog lore) reinforces customer loyalty and marketing moat but has limited direct near-term impact on earnings. USA Today: Iconic Brand Story
• Neutral Sentiment: Commentary suggesting Costco could be considered for the Dow adds prestige and occasional headline interest, but index inclusion is speculative and not an immediate earnings driver. 247WallSt: Dow Inclusion Discussion
• Negative Sentiment: Multiple pieces note Costco’s premium valuation (high P/E and compressed yield versus peers) and recent pullback, warning that rich multiples may limit near-term upside despite operational strength. That valuation concern is a key counterweight for growth-oriented buyers. Yahoo Finance: Valuation / Reassessment

Costco Wholesale Stock Performance

Shares of COST opened at $984.75 on Thursday. The firm has a fifty day moving average of $995.81 and a 200-day moving average of $943.83. The company has a market cap of $436.88 billion, a price-to-earnings ratio of 51.21, a price-to-earnings-growth ratio of 4.80 and a beta of 0.99. 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 1 year low of $844.06 and a 1 year high of $1,067.08.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 earnings per share for the quarter, topping analysts' consensus estimates of $4.55 by $0.03. The business had revenue of $69.60 billion for 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 earned $4.02 EPS. As a group, equities analysts anticipate that Costco Wholesale Corporation will post 18.03 earnings per share for the current year.

Costco Wholesale Increases Dividend

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

Analysts Set New Price Targets

Several research firms have weighed in on COST. BMO Capital Markets boosted their target price on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the company an "outperform" rating in a research note on Friday, March 6th. Weiss Ratings raised shares of Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, March 17th. Wells Fargo & Company increased their price objective on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 9th. Telsey Advisory Group raised 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, Sanford C. Bernstein restated an "outperform" rating and issued a $1,155.00 target price on shares of Costco Wholesale in a research note on Monday, February 9th. Twenty-two research 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. According to MarketBeat, Costco Wholesale has an average rating of "Moderate Buy" and an average target price of $1,043.13.

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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