Lazard Freres Gestion S.A.S. Increases Stock Position in Costco Wholesale Corporation $COST

Key Points

• Lazard Freres Gestion S.A.S. increased its Costco stake by 36.5% in the fourth quarter, adding 30,933 shares and bringing its total holding to 115,633 shares worth about $99.7 million.
• Costco reported stronger-than-expected quarterly results, with EPS of $4.58 and revenue of $69.6 billion, while analysts now expect the company to earn 20.31 per share for the current fiscal year.
• The company also raised its quarterly dividend to $1.47 per share from $1.30, extending its long record of dividend growth and signaling continued confidence in cash generation.

Lazard Freres Gestion S.A.S. boosted its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 36.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 115,633 shares of the retailer's stock after buying an additional 30,933 shares during the quarter. Costco Wholesale accounts for about 1.8% of Lazard Freres Gestion S.A.S.'s holdings, making the stock its 20th biggest holding. Lazard Freres Gestion S.A.S.'s holdings in Costco Wholesale were worth $99,714,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Fischer Financial Services Inc. boosted its stake in shares of Costco Wholesale by 2.9% in the fourth quarter. Fischer Financial Services Inc. now owns 7,836 shares of the retailer's stock valued at $6,756,000 after purchasing an additional 224 shares during the period. Kennedy Investment Group boosted its stake in shares of Costco Wholesale by 22.2% in the fourth quarter. Kennedy Investment Group now owns 2,446 shares of the retailer's stock valued at $2,110,000 after purchasing an additional 445 shares during the period. TPG Financial Advisors LLC boosted its stake in shares of Costco Wholesale by 5.2% in the fourth quarter. TPG Financial Advisors LLC now owns 386 shares of the retailer's stock valued at $333,000 after purchasing an additional 19 shares during the period. Brown Wealth Management LLC boosted its stake in shares of Costco Wholesale by 6.6% in the fourth quarter. Brown Wealth Management LLC now owns 325 shares of the retailer's stock valued at $280,000 after purchasing an additional 20 shares during the period. Finally, Providence Wealth Advisors LLC boosted its stake in shares of Costco Wholesale by 1.5% in the fourth quarter. Providence Wealth Advisors LLC now owns 1,031 shares of the retailer's stock valued at $903,000 after purchasing an additional 15 shares during the period. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale Stock Up 1.7%

COST stock opened at $1,094.32 on Wednesday. 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 Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50. The company's 50 day moving average is $1,004.71 and its two-hundred day moving average is $957.59. The stock has a market cap of $485.50 billion, a P/E ratio of 56.91, a PEG ratio of 5.30 and a beta of 0.92.

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. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The company had revenue of $69.60 billion for the quarter, compared to analysts' expectations of $68.96 billion. During the same quarter last year, the company earned $4.02 earnings per share. The firm's revenue for the quarter was up 9.2% on a year-over-year basis. Research analysts expect that Costco Wholesale Corporation will post 20.31 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were issued a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, May 1st. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a yield of 0.5%. Costco Wholesale's dividend payout ratio is 30.58%.

Insiders Place Their Bets

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the firm's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the sale, the executive vice president owned 6,121 shares of the company's stock, valued at approximately $6,139,485.42. This trade represents a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.10% of the company's stock.

Trending Headlines about Costco Wholesale

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

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the stock. The Goldman Sachs Group lowered their price objective on shares of Costco Wholesale from $1,171.00 to $1,088.00 and set a "buy" rating for the company in a research note on Friday, March 6th. Daiwa Securities Group raised their price objective on shares of Costco Wholesale from $917.00 to $975.00 and gave the company a "neutral" rating in a research note on Tuesday, March 10th. Mizuho raised their price objective on shares of Costco Wholesale from $1,065.00 to $1,100.00 and gave the company an "outperform" rating in a research note on Thursday, April 16th. TD Cowen reissued a "buy" rating on shares of Costco Wholesale in a research note on Friday, March 6th. Finally, Citigroup reissued a "neutral" rating on shares of Costco Wholesale in a research note on Friday, February 20th. Twenty-two equities 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. Based on data from MarketBeat.com, Costco Wholesale presently has a consensus rating of "Moderate Buy" and an average target price of $1,049.27.

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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