Northwestern Mutual Wealth Management Co. Sells 3,416 Shares of Costco Wholesale Corporation $COST

Key Points

• Northwestern Mutual Wealth Management trimmed its Costco stake by 1.8% in the fourth quarter, selling 3,416 shares and leaving it with 186,435 shares valued at about $160.8 million.
• Costco’s latest results were mixed but strong on revenue: quarterly sales of $70.53 billion topped estimates, while EPS of $4.93 slightly missed expectations of $4.98.
• The company also raised its quarterly dividend to $1.47 per share from $1.30, and analysts remain broadly positive with a consensus rating of “Moderate Buy” and a target price around $1,051.

Northwestern Mutual Wealth Management Co. cut its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1.8% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 186,435 shares of the retailer's stock after selling 3,416 shares during the period. Northwestern Mutual Wealth Management Co.'s holdings in Costco Wholesale were worth $160,770,000 as of its most recent SEC filing.

Several other institutional investors have also bought and sold shares of COST. Brighton Jones LLC lifted its position in Costco Wholesale by 12.3% during the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock valued at $18,165,000 after purchasing an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC lifted its position in Costco Wholesale by 13.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock valued at $1,029,000 after purchasing an additional 130 shares during the last quarter. Sivia Capital Partners LLC lifted its position in Costco Wholesale by 4.5% during the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock valued at $3,814,000 after purchasing an additional 165 shares during the last quarter. Pinnacle Wealth Planning Services Inc. lifted its position in Costco Wholesale by 1.1% during the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock valued at $2,089,000 after purchasing an additional 23 shares during the last quarter. Finally, Schnieders Capital Management LLC. lifted its stake in shares of Costco Wholesale by 2.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock valued at $8,416,000 after purchasing an additional 182 shares during the last quarter. Institutional investors own 68.48% of the company's stock.

Insider Activity

In related news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction dated 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 completion of the sale, 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 position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 0.10% of the company's stock.

Key Costco Wholesale News

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

• Positive Sentiment: Costco reported stronger-than-expected sales, including U.S. same-store sales growth of 9.8% and adjusted comparable sales up 6.6%, showing that demand remains resilient even in a pressured consumer environment.
• Positive Sentiment: Revenue came in above Wall Street expectations, with $70.53 billion in quarterly sales versus estimates of $69.68 billion, reinforcing the company’s ability to keep growing at scale.
• Positive Sentiment: Membership and gas-related traffic appear to be supporting results, with higher fuel prices bringing more shoppers into warehouses and boosting basket sizes and same-store sales.
• Neutral Sentiment: EPS of $4.93 was slightly below the consensus estimate of $4.98, making the report mixed rather than uniformly strong, even though profits still improved year over year.
• Neutral Sentiment: Several pre-earnings articles framed Costco as a high-quality defensive retailer with a premium valuation, suggesting investors may continue to focus on whether the stock can justify its elevated multiple.
• Negative Sentiment: The small earnings miss could temper enthusiasm in the near term, especially given the stock’s recent run-up and the market’s high expectations heading into the print.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on COST. BTIG Research reaffirmed a "buy" rating and issued a $1,115.00 price objective on shares of Costco Wholesale in a research note on Thursday, March 5th. Daiwa Securities Group raised their price objective on Costco Wholesale from $917.00 to $975.00 and gave the company a "neutral" rating in a research note on Tuesday, March 10th. TD Cowen reaffirmed a "buy" rating on shares of Costco Wholesale in a research note on Friday, March 6th. JPMorgan Chase & Co. raised their price objective on Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an "overweight" rating in a research note on Friday, April 17th. Finally, Rothschild & Co Redburn raised their price objective 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. Twenty-one investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $1,051.18.

Costco Wholesale Price Performance

Shares of COST stock opened at $995.20 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 $441.52 billion, a P/E ratio of 51.75, a P/E/G ratio of 4.94 and a beta of 0.92. The stock has a 50 day moving average price of $1,008.28 and a 200 day moving average price of $962.53.

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 for the quarter, compared to the consensus estimate of $69.68 billion. During the same period in the prior year, the business posted $4.28 earnings per share. As a group, sell-side analysts predict that Costco Wholesale Corporation will post 20.33 earnings per share for the current year.

Costco Wholesale Increases Dividend

The firm also recently declared 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. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 dividend on an annualized basis 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 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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