Norges Bank Invests $5.20 Billion in Costco Wholesale Corporation $COST

Key Points

• Norges Bank disclosed a new stake in Costco, buying 6.0 million shares valued at about $5.2 billion, making it Costco’s 22nd-largest holding in the fund’s portfolio.
• Costco’s latest quarter showed strong sales momentum, with revenue of $70.53 billion beating estimates and same-store sales rising 9.8%, helped by robust gas sales, digital growth, and steady membership strength.
• Despite the sales beat, Costco’s EPS of $4.93 missed expectations slightly, and investors remain focused on margin pressure and the stock’s premium valuation even as analysts largely stay bullish.

Norges Bank acquired a new position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 6,024,787 shares of the retailer's stock, valued at approximately $5,195,415,000. Costco Wholesale makes up 0.6% of Norges Bank's investment portfolio, making the stock its 22nd largest position. Norges Bank owned 1.36% of Costco Wholesale at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of the stock. Soundwatch Capital LLC increased its stake in shares of Costco Wholesale by 8.6% in the 4th quarter. Soundwatch Capital LLC now owns 342 shares of the retailer's stock worth $295,000 after purchasing an additional 27 shares in the last quarter. Madison Wealth Partners Inc increased its stake in shares of Costco Wholesale by 69.4% in the 4th quarter. Madison Wealth Partners Inc now owns 2,109 shares of the retailer's stock worth $1,819,000 after purchasing an additional 864 shares in the last quarter. Hilltop Partners LLC increased its stake in shares of Costco Wholesale by 41.6% in the 4th quarter. Hilltop Partners LLC now owns 2,819 shares of the retailer's stock worth $2,431,000 after purchasing an additional 828 shares in the last quarter. Eurizon SLJ Capital Ltd purchased a new stake in shares of Costco Wholesale in the 4th quarter worth $618,000. Finally, Eurizon Capital SGR S.p.A. purchased a new stake in shares of Costco Wholesale in the 4th quarter worth $48,687,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco posted strong third-quarter results, with revenue of $70.53 billion topping estimates and same-store sales rising 9.8%, showing that members are still spending on essentials and value-focused purchases.
• Positive Sentiment: Gasoline sales were a standout, with Costco’s gas stations setting all-time or record volume levels as drivers sought lower-priced fuel amid elevated energy costs. Article Title
• Positive Sentiment: Digital growth and membership strength continued to support results, helping offset margin pressure and reinforcing Costco’s value-driven model.
• Positive Sentiment: Several Wall Street firms raised price targets or reiterated bullish ratings, including Bank of America, Goldman Sachs, Bernstein, BTIG, and Morgan Stanley, signaling confidence in Costco’s long-term fundamentals.
• Neutral Sentiment: DA Davidson reaffirmed a neutral rating with a $1,000 target, suggesting modest upside but not a strong catalyst for a re-rating.
• Neutral Sentiment: Costco said it will return U.S. tariff refunds to members “in some form,” which may help customer loyalty but does not yet provide a clear financial boost.
• Negative Sentiment: EPS of $4.93 missed consensus by a small margin, and investors appear focused on the earnings shortfall more than the sales beat.
• Negative Sentiment: Margin pressure from higher costs and a premium valuation have prompted some traders to sell after the report, limiting enthusiasm despite the strong top-line performance.

Insider Buying and Selling at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of the firm's stock in a transaction dated 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 transaction, the executive vice president owned 6,121 shares in the company, valued at $6,139,485.42. This trade represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.10% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several research firms have recently commented on COST. Telsey Advisory Group upped their price objective on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an "outperform" rating in a research note on Thursday, April 9th. Rothschild & Co Redburn upped their price objective on Costco Wholesale from $890.00 to $1,000.00 and gave the stock a "neutral" rating in a research note on Tuesday, February 17th. Mizuho upped their price objective on Costco Wholesale from $1,065.00 to $1,100.00 and gave the stock an "outperform" rating in a research note on Thursday, April 16th. Evercore set a $1,100.00 price target on Costco Wholesale in a research note on Monday, March 2nd. Finally, Robert W. Baird set a $1,100.00 price target on Costco Wholesale in a research note on Thursday, February 5th. Twenty-one equities 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's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $1,056.32.

Costco Wholesale Trading Down 3.9%

Shares of COST stock opened at $956.32 on Friday. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.59 and a current ratio of 1.06. The firm has a market capitalization of $424.27 billion, a PE ratio of 49.73, a PEG ratio of 4.90 and a beta of 0.92. The stock has a fifty day simple moving average of $1,007.80 and a two-hundred day simple moving average of $962.48.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.98 by ($0.05). Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The business had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $69.68 billion. During the same quarter in the previous year, the company posted $4.28 EPS. On average, analysts predict that Costco Wholesale Corporation will post 20.33 EPS for the current fiscal 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 given a dividend of $1.47 per share. The ex-dividend date was Friday, May 1st. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is 30.58%.

Costco Wholesale 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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