O Shaughnessy Asset Management LLC Trims Stock Position in Costco Wholesale Corporation $COST

Key Points

• O Shaughnessy Asset Management trimmed its Costco stake by 7.8% in the fourth quarter, selling 7,111 shares and leaving it with 84,492 shares valued at about $72.9 million.
• Institutional interest in Costco remains strong overall, with several large investors boosting positions and hedge funds and other institutions owning 68.48% of the stock.
• Analysts remain broadly positive, with Costco carrying a Moderate Buy consensus and recent price targets raised as high as $1,315, even though the stock’s premium valuation continues to draw caution.

O Shaughnessy Asset Management LLC cut its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 7.8% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 84,492 shares of the retailer's stock after selling 7,111 shares during the period. O Shaughnessy Asset Management LLC's holdings in Costco Wholesale were worth $72,861,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of COST. Norges Bank purchased a new position in Costco Wholesale during the fourth quarter worth about $5,195,415,000. Assenagon Asset Management S.A. increased its position in shares of Costco Wholesale by 1,586.8% during the fourth quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer's stock valued at $980,857,000 after acquiring an additional 1,070,005 shares during the last quarter. Amundi increased its position in shares of Costco Wholesale by 45.0% during the third quarter. Amundi now owns 3,176,606 shares of the retailer's stock valued at $2,893,697,000 after acquiring an additional 986,182 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of Costco Wholesale by 182.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 536,059 shares of the retailer's stock valued at $462,265,000 after acquiring an additional 346,208 shares during the last quarter. Finally, Voloridge Investment Management LLC increased its position in shares of Costco Wholesale by 112.2% during the third quarter. Voloridge Investment Management LLC now owns 477,425 shares of the retailer's stock valued at $441,919,000 after acquiring an additional 252,453 shares during the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

COST has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. lifted their price target on shares of Costco Wholesale from $1,060.00 to $1,110.00 and gave the company an "overweight" rating in a research report on Friday, April 17th. BMO Capital Markets lifted their price objective on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the company an "outperform" rating in a report on Friday, March 6th. Sanford C. Bernstein lifted their price objective on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an "outperform" rating in a report on Friday, May 29th. HC Wainwright restated a "buy" rating on shares of Costco Wholesale in a report on Monday, June 1st. Finally, UBS Group lifted their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a report on Wednesday, May 20th. Twenty-two 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 stock. Based on data from MarketBeat.com, Costco Wholesale presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,060.41.

Costco Wholesale Stock Performance

Shares of Costco Wholesale stock opened at $971.87 on Monday. The firm's fifty day simple moving average is $1,006.71 and its 200-day simple moving average is $964.35. The stock has a market capitalization of $431.00 billion, a price-to-earnings ratio of 48.89, a PEG ratio of 4.71 and a beta of 0.88. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month 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.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share 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 company had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same period last year, the company earned $4.28 earnings per share. As a group, equities analysts forecast that Costco Wholesale Corporation will post 20.38 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 given a dividend of $1.47 per share. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's dividend payout ratio is currently 29.58%.

Costco Wholesale News Summary

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

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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