Legal & General Group Plc Has $2.15 Billion Position in Costco Wholesale Corporation $COST

Key Points

• Legal & General Group Plc trimmed its Costco stake by 1.9% in the fourth quarter, but still held 2.49 million shares valued at about $2.15 billion. Costco remained its 26th-largest holding and represented roughly 0.5% of the portfolio.
• Institutional ownership of Costco remains very high at 68.48%, and analysts continue to be broadly constructive. The consensus rating is Moderate Buy with an average price target of about $1,052.60.
• Costco has been posting solid operating results and shareholder returns, with its latest quarterly earnings and revenue both topping expectations and the company recently raised its dividend to $1.47 per share. However, the stock is also drawing valuation concerns after its strong run and recent move above $1,000.

Legal & General Group Plc lessened its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1.9% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,492,559 shares of the retailer's stock after selling 47,989 shares during the period. Costco Wholesale accounts for about 0.5% of Legal & General Group Plc's portfolio, making the stock its 26th biggest holding. Legal & General Group Plc owned about 0.56% of Costco Wholesale worth $2,149,433,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Hurley Capital LLC increased its holdings in Costco Wholesale by 120.0% in the 3rd quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after purchasing an additional 18 shares in the last quarter. Entrust Financial LLC acquired a new position in Costco Wholesale in the 4th quarter worth about $31,000. Abich Financial Wealth Management LLC acquired a new position in Costco Wholesale in the 3rd quarter worth about $34,000. Collier Financial acquired a new stake in shares of Costco Wholesale in the third quarter valued at about $35,000. Finally, Joseph Group Capital Management acquired a new stake in shares of Costco Wholesale in the fourth quarter valued at about $33,000. Institutional investors and hedge funds own 68.48% of the company's stock.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco remains a top momentum and growth name, with multiple recent pieces highlighting strong long-term performance and continued investor interest as the shares trade near record levels. Why Costco (COST) is a Top Momentum Stock for the Long-Term
• Positive Sentiment: Speculation about a possible stock split has intensified after Costco broke back above the $1,000 share-price milestone, which can boost sentiment by making the stock seem more accessible to retail investors. Costco Stock Split Rumors Explode as COST Smashes $1,000 Milestone Again
• Positive Sentiment: Analysts and market coverage continue to point to Costco’s solid operating momentum and long-term return profile, reinforcing the view that the business is executing well even after a big run-up. A Look At Costco Wholesale (COST) Valuation As Shares Trade Near Recent Highs
• Neutral Sentiment: Costco is expanding its footprint, including rezoning and land purchase activity for new locations, which supports long-term growth but is not likely to move the stock much on its own. New details emerge in proposed north Macon Costco project
• Neutral Sentiment: Costco is also seeing incremental membership-related promotion and seasonal deal coverage, which may help traffic but appears too small to materially affect the share price near term. This Costco deal cuts the price of membership to $45 - here's how to get it
• Negative Sentiment: Near-term pressure is coming from valuation concerns: several articles note that Costco’s stock is already priced for strong execution, leaving little room for disappointment after the recent rally. Costco Q3 Earnings Preview: Great Business With Limited Upside
• Negative Sentiment: Costco also traded lower in sympathy with Walmart after Walmart’s earnings and guidance disappointed investors, sparking broader concern about the consumer-retail backdrop. Costco Stock Dips After Walmart's Q1 Report: What's Going On?
• Negative Sentiment: Costco is facing headlines around tariff refunds and a tax dispute in Japan, adding some legal and regulatory noise, though these issues do not appear to be the main driver of today’s move. Costco suit highlights gaps in $166B tariff refund process

Insider Buying and Selling

In related news, EVP Claudine Adamo sold 730 shares of the firm's stock in a transaction that occurred 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 of the company's stock, valued at $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 SEC, which is available at the SEC website. 0.10% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Telsey Advisory Group increased their price target on Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an "outperform" rating in a research note on Thursday, April 9th. Wells Fargo & Company increased their price target on Costco Wholesale from $950.00 to $1,000.00 and gave the company an "equal weight" rating in a research note on Thursday, April 9th. DA Davidson reissued a "neutral" rating and issued a $1,000.00 price target on shares of Costco Wholesale in a research note on Friday, April 10th. Rothschild & Co Redburn increased their price target on Costco Wholesale from $890.00 to $1,000.00 and gave the company a "neutral" rating in a research note on Tuesday, February 17th. Finally, Jefferies Financial Group reissued a "buy" rating and issued a $1,050.00 price target on shares of Costco Wholesale in a research note on Thursday, March 5th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $1,052.60.

Costco Wholesale Stock Performance

NASDAQ COST opened at $1,028.24 on Monday. The business has a 50 day simple moving average of $1,007.87 and a 200 day simple moving average of $960.36. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The stock has a market capitalization of $456.18 billion, a P/E ratio of 53.47, a P/E/G ratio of 5.06 and a beta of 0.92. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, topping the consensus estimate of $4.55 by $0.03. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The business had revenue of $69.60 billion during the quarter, compared to analysts' expectations of $68.96 billion. During the same quarter last year, the firm posted $4.02 earnings per share. The firm's revenue was up 9.2% on a year-over-year basis. Research analysts expect that Costco Wholesale Corporation will post 20.33 earnings per share for the current year.

Costco Wholesale Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were paid a dividend of $1.47 per share. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale's payout ratio is 30.58%.

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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