Next Century Growth Investors LLC Reduces Stock Position in Costco Wholesale Corporation $COST

Next Century Growth Investors LLC lessened its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 64.3% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,242 shares of the retailer's stock after selling 4,040 shares during the quarter. Next Century Growth Investors LLC's holdings in Costco Wholesale were worth $1,933,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in COST. Vanguard Group Inc. grew its holdings in Costco Wholesale by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer's stock valued at $37,615,889,000 after buying an additional 165,349 shares during the period. Geode Capital Management LLC grew its holdings in Costco Wholesale by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer's stock valued at $8,919,573,000 after buying an additional 26,690 shares during the period. Morgan Stanley grew its holdings in Costco Wholesale by 1.1% in the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer's stock valued at $8,212,433,000 after buying an additional 107,775 shares during the period. Norges Bank purchased a new stake in Costco Wholesale in the 4th quarter valued at about $5,195,415,000. Finally, Capital World Investors grew its holdings in Costco Wholesale by 2.0% in the 4th quarter. Capital World Investors now owns 3,937,286 shares of the retailer's stock valued at $3,395,301,000 after buying an additional 77,650 shares during the period. Hedge funds and other institutional investors own 68.48% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have commented on COST shares. Citigroup restated a "neutral" rating on shares of Costco Wholesale in a report on Friday, February 20th. Wells Fargo & Company lifted their price target on Costco Wholesale from $950.00 to $1,000.00 and gave the company an "equal weight" rating in a report on Thursday, April 9th. Rothschild & Co Redburn lifted their price target on Costco Wholesale from $890.00 to $1,000.00 and gave the company a "neutral" rating in a report on Tuesday, February 17th. Daiwa Securities Group lifted their price target on Costco Wholesale from $917.00 to $975.00 and gave the company a "neutral" rating in a report on Tuesday, March 10th. Finally, DA Davidson restated a "neutral" rating and issued a $1,000.00 price target on shares of Costco Wholesale in a report on Thursday, June 4th. Twenty-two investment 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's stock. According to MarketBeat.com, Costco Wholesale currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,060.41.

Costco Wholesale Stock Performance

NASDAQ COST opened at $982.35 on Monday. The firm has a market capitalization of $435.65 billion, a P/E ratio of 49.41, a P/E/G ratio of 4.76 and a beta of 0.88. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The business's 50-day simple moving average is $1,005.34 and its 200-day simple moving average is $967.31.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing the consensus estimate of $4.94 by ($0.01). The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. During the same period in the prior year, the firm earned $4.28 earnings per share. Equities analysts predict that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were paid a $1.47 dividend. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio is presently 29.58%.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Erste Group Bank lifted its FY2026 and FY2027 earnings forecasts for Costco, signaling expectations for stronger profitability ahead.
• Positive Sentiment: Commentary in 24/7 Wall St. emphasized Costco’s membership-fee model as a resilient source of recurring revenue that can support long-term earnings growth.
• Positive Sentiment: Barchart coverage noted Costco as one of the retail names rewarding shareholders with a higher dividend, reinforcing the company’s capital-return appeal.
• Neutral Sentiment: Coverage that Costco offers shopping without a membership in limited cases is mainly informational and not likely to materially affect the stock.
• Neutral Sentiment: The Iowa court decision involving a former Costco manager appears to be a legal headline with limited direct impact on the company’s overall financial outlook.
• Negative Sentiment: Bloomberg reported rising plastic input costs may lead to higher prices for consumer goods later this year, which could add inflation pressure to Costco’s retail environment and potentially squeeze margins or demand.

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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