Nemes Rush Group LLC Reduces Stock Holdings in Costco Wholesale Corporation $COST

Key Points

• Nemes Rush Group LLC cut its Costco stake by 9.8% in the fourth quarter, selling 1,350 shares and ending with 12,389 shares valued at about $10.7 million.
• Several other institutional investors were active in COST, including a huge new position from Norges Bank; overall, institutions own 68.48% of Costco’s stock.
• Analysts remain broadly constructive despite valuation concerns, with Costco carrying a “Moderate Buy” consensus and a target price of about $1,060.41 after its latest earnings and dividend increase.

Nemes Rush Group LLC lowered its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 9.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 12,389 shares of the retailer's stock after selling 1,350 shares during the quarter. Nemes Rush Group LLC's holdings in Costco Wholesale were worth $10,684,000 at the end of the most recent quarter.

A number of other hedge funds have also made changes to their positions in COST. Norges Bank purchased a new stake in Costco Wholesale in the 4th quarter valued at approximately $5,195,415,000. Assenagon Asset Management S.A. lifted its stake in Costco Wholesale by 1,586.8% in the 4th 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 in the last quarter. Amundi raised its holdings in shares of Costco Wholesale by 45.0% in the third quarter. Amundi now owns 3,176,606 shares of the retailer's stock worth $2,893,697,000 after acquiring an additional 986,182 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings 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 acquiring an additional 346,208 shares during the last quarter. Finally, Voloridge Investment Management LLC raised its holdings in shares of Costco Wholesale by 112.2% in the third quarter. Voloridge Investment Management LLC now owns 477,425 shares of the retailer's stock worth $441,919,000 after acquiring an additional 252,453 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Analyst Upgrades and Downgrades

COST has been the subject of a number of recent research reports. Truist Financial lifted their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research report on Friday, May 29th. TD Cowen reiterated a "buy" rating and set a $1,175.00 price objective on shares of Costco Wholesale in a research report on Wednesday. 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 research report on Friday, March 6th. UBS Group lifted their price objective on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a research report on Wednesday, May 20th. Finally, DA Davidson reiterated a "neutral" rating and set a $1,000.00 price objective on shares of Costco Wholesale in a research report on Thursday. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $1,060.41.

Costco Wholesale Stock Down 0.0%

COST opened at $971.87 on Friday. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.59. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The stock has a market capitalization of $431.00 billion, a price-to-earnings ratio of 48.89, a price-to-earnings-growth ratio of 4.71 and a beta of 0.88. The business has a 50-day moving average of $1,006.71 and a two-hundred day moving average of $963.99.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The firm had revenue of $70.53 billion for the quarter, compared to analysts' expectations of $70.12 billion. During the same quarter in the previous year, the firm posted $4.28 EPS. On average, research analysts expect that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were issued a $1.47 dividend. The ex-dividend date was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio (DPR) is currently 29.58%.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco posted another strong month, with May net sales up 14.5% year over year to $24.01 billion and comparable sales still running at a healthy pace, reinforcing the view that traffic and spending trends remain solid. Costco Wholesale Corporation Reports May Sales Results
• Positive Sentiment: Analysts continued to point to Costco’s defensive fundamentals, strong U.S. comparable sales, fuel-driven traffic, and growing digital business as reasons for optimism on the stock. Costco Stock (COST) Keeps Wall Street Split despite Accelerating Sales
• Positive Sentiment: Costco’s ability to hold up during the broader market sell-off underscored its reputation as a defensive retailer, which may have helped support investor interest. Why Costco Stock Held Steady During Friday's Market Sell-Off
• Neutral Sentiment: Several articles framed Costco as a high-quality long-term compounder, but also emphasized that its premium valuation leaves less room for error if growth slows. Costco stock price shocks market despite major blowout quarter
• Neutral Sentiment: Costco’s valuation remains a debate point on Wall Street, with some analysts maintaining Buy ratings and high price targets while others argue the stock already reflects much of the good news. Costco: Robust Comps and Reaccelerating Digital Sales Support Buy Rating, Price Target Reaffirmed at $1275
• Negative Sentiment: One recent note argued that Costco’s strong quarter was not enough to offset valuation worries, suggesting investors may be hesitant to pay up after the recent sales-driven rally. Costco's Strong Quarter Still Leaves Investors with a Valuation Problem

Insiders Place Their Bets

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the company'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 value of $732,204.60. Following the completion of the transaction, the executive vice president owned 6,121 shares in the company, valued at $6,139,485.42. This represents a 10.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.10% of the stock is currently owned by corporate insiders.

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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