Resona Asset Management Co. Ltd. Has $176.44 Million Position in Costco Wholesale Corporation $COST

Key Points

• Resona Asset Management trimmed its Costco stake by 1.4% in the first quarter, but it still held 177,066 shares worth about $176.4 million, making COST its 18th-largest position.
• Costco reported quarterly EPS of $4.93, missing estimates by a penny, while revenue came in slightly above expectations at $70.53 billion. Analysts still expect the company to generate 20.38 EPS for the full fiscal year.
• The company declared a quarterly dividend of $1.47 per share, payable on August 7, and its shareholder payout remains supported by a 29.58% payout ratio. Sentiment remains broadly positive, with multiple analysts maintaining or raising bullish ratings and Costco’s June sales topping $29.24 billion.

Resona Asset Management Co. Ltd. cut its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1.4% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 177,066 shares of the retailer's stock after selling 2,468 shares during the period. Costco Wholesale makes up approximately 0.9% of Resona Asset Management Co. Ltd.'s portfolio, making the stock its 18th biggest position. Resona Asset Management Co. Ltd.'s holdings in Costco Wholesale were worth $176,438,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in COST. Palisade Asset Management LLC increased its holdings in Costco Wholesale by 1.4% in the fourth quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock worth $605,000 after purchasing an additional 10 shares in the last quarter. Graybill Wealth Management LTD. grew its position in shares of Costco Wholesale by 0.3% during the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock worth $2,754,000 after buying an additional 10 shares during the period. Wealth Effects LLC grew its position in shares of Costco Wholesale by 1.2% during the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock worth $871,000 after buying an additional 10 shares during the period. Folger Nolan Fleming Douglas Capital Management Inc. increased its stake in shares of Costco Wholesale by 1.8% in the 1st quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock valued at $549,000 after acquiring an additional 10 shares in the last quarter. Finally, Lbmc Investment Advisors LLC increased its stake in shares of Costco Wholesale by 0.5% in the 4th quarter. Lbmc Investment Advisors LLC now owns 2,041 shares of the retailer's stock valued at $1,760,000 after acquiring an additional 10 shares in the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale Price Performance

Shares of COST opened at $953.13 on Thursday. The business's fifty day moving average is $986.93 and its 200 day moving average is $975.26. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The stock has a market cap of $422.69 billion, a P/E ratio of 47.94, a P/E/G ratio of 4.59 and a beta of 0.88.

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

Costco Wholesale Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Friday, July 24th will be given a dividend of $1.47 per share. The ex-dividend date of this dividend is Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's payout ratio is presently 29.58%.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco reported strong June sales of $29.24 billion, signaling continued momentum in its core business and supporting the stock’s defensive growth story. Costco Wholesale Corporation Reports June Sales Results and Announces Quarterly Cash Dividend
• Positive Sentiment: William Blair reiterated a Buy rating, citing resilient traffic and Costco’s defensive positioning despite temporary headwinds, which adds to bullish sentiment around the shares. Analyst Maintains Buy on Costco, Citing Resilient Traffic and Defensive Positioning Despite Transient Headwinds
• Positive Sentiment: Costco also announced its quarterly cash dividend alongside the sales update, reinforcing its shareholder-return profile. Costco Wholesale Corporation Reports June Sales Results and Announces Quarterly Cash Dividend
• Neutral Sentiment: Broader commentary about Costco as a blue-chip, quality retail name may be helping support investor interest, but it is not a direct company-specific catalyst. 3 Blue-Chip Retail Stocks to Trust as Volatility Favors Quality
• Negative Sentiment: A consumer lawsuit alleging Costco sold Orgain protein supplements contaminated with heavy metals could create some headline risk, though it appears less impactful than the strong sales news. Hagens Berman: Consumer Lawsuit Against Costco Alleges Toxic Heavy Metals in Orgain Protein Supplements

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on COST. UBS Group increased their target price on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a research note on Wednesday, May 20th. Telsey Advisory Group lifted their price target on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an "outperform" rating in a research note on Thursday, April 9th. HC Wainwright reiterated a "buy" rating on shares of Costco Wholesale in a report on Monday, June 1st. Truist Financial upped their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a report on Friday, May 29th. Finally, Sanford C. Bernstein raised their target price on Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an "outperform" rating in a research note on Friday, May 29th. Twenty-two equities research 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.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $1,061.45.

Insider Activity at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of the company's stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the sale, the director owned 4,779 shares in the company, valued at $4,575,653.55. This represents a 15.62% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.10% of the stock is currently owned by 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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