Resona Asset Management Co. Ltd. Trims Holdings in Costco Wholesale Corporation $COST

Key Points

• Resona Asset Management trimmed its Costco stake by 1.7% in the fourth quarter, selling 3,036 shares and leaving it with 179,534 shares valued at about $155 million.
• Institutional ownership remains heavy, with hedge funds and other institutional investors holding about 68.48% of Costco shares overall.
• Wall Street remains mostly bullish on Costco: analysts currently rate the stock a “Moderate Buy,” with a consensus price target of $1,047.27, while recent coverage highlighted strong sales, a dividend increase, and stock momentum.

Resona Asset Management Co. Ltd. reduced its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1.7% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 179,534 shares of the retailer's stock after selling 3,036 shares during the period. Costco Wholesale comprises about 0.7% of Resona Asset Management Co. Ltd.'s holdings, making the stock its 19th largest holding. Resona Asset Management Co. Ltd.'s holdings in Costco Wholesale were worth $154,974,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. Hurley Capital LLC boosted its position in shares of Costco Wholesale by 120.0% during the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after buying an additional 18 shares during the period. Entrust Financial LLC purchased a new stake in Costco Wholesale during the fourth quarter worth about $31,000. Joseph Group Capital Management purchased a new stake in Costco Wholesale during the fourth quarter worth about $33,000. Abich Financial Wealth Management LLC purchased a new stake in Costco Wholesale during the third quarter worth about $34,000. Finally, Collier Financial purchased a new stake in Costco Wholesale during the third quarter worth about $35,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on COST shares. Sanford C. Bernstein reiterated an "outperform" rating and set a $1,192.00 price target on shares of Costco Wholesale in a research note on Tuesday, May 12th. The Goldman Sachs Group cut their price target on shares of Costco Wholesale from $1,171.00 to $1,088.00 and set a "buy" rating on the stock in a research note on Friday, March 6th. Roth Mkm reissued a "sell" rating on shares of Costco Wholesale in a research report on Wednesday, February 4th. UBS Group set a $1,175.00 price target on shares of Costco Wholesale in a research report on Friday, March 6th. Finally, Wells Fargo & Company raised their price target on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the company an "equal weight" rating in a research report on Thursday, April 9th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $1,047.27.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco reported strong April sales, with net sales up 13.0% year over year, comparable sales rising 11.6%, and digital sales climbing 18.8%, reinforcing its reputation as a defensive retailer benefiting from value-focused consumer spending. Costco's April Sales Reinforce Its Case as the Ultimate Defensive Stock
• Positive Sentiment: The company boosted its quarterly dividend by 13% to $1.47 per share, a signal of confidence in cash generation that can attract income-oriented investors. Costco (COST) Surges to New 52-Week Peak Following Strong Dividend Boost
• Positive Sentiment: Several articles framed Costco as a breakout candidate after its recent rally, with commentary pointing to strong year-to-date momentum and a new 52-week high. Prediction: The Stage is Set for a Costco Stock Breakout
• Positive Sentiment: Costco is also gaining attention for product expansion and brand strength, including a test of new chicken strips in food courts and a broader rollout of mixsoon skincare products across U.S. warehouse locations. Costco is testing chicken strips in food courts and customers say they’re ginormous
• Neutral Sentiment: One article highlighted a legal issue tied to a disability discrimination verdict, which adds some headline risk but appears smaller than the company’s sales and dividend positives. How Investors Are Reacting To Costco Wholesale (COST) Double‑Digit April Sales, Florida Expansion And Jury Verdict
• Neutral Sentiment: Analyst commentary remains constructive overall, with coverage describing Costco as resilient and well positioned, but these pieces mainly reinforce an already favorable narrative rather than introducing a new catalyst. The Zacks Analyst Blog Highlights Costco, Coca-Cola, AstraZeneca and Franklin Financial Services

Costco Wholesale Price Performance

Shares of NASDAQ COST opened at $1,076.47 on Tuesday. The stock's 50-day moving average is $1,002.78 and its two-hundred day moving average is $956.31. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.06 and a quick ratio of 0.59. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,079.83. The company has a market cap of $477.58 billion, a price-to-earnings ratio of 55.98, a price-to-earnings-growth ratio of 5.16 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Wednesday, March 11th. The retailer reported $4.58 earnings per share for the quarter, topping the consensus estimate of $4.55 by $0.03. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The company had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. During the same quarter in the prior year, the business earned $4.02 EPS. Costco Wholesale's revenue was up 9.2% on a year-over-year basis. Analysts forecast that Costco Wholesale Corporation will post 20.31 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were paid a $1.47 dividend. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Friday, May 1st. Costco Wholesale's payout ratio is presently 30.58%.

Insider Transactions at Costco Wholesale

In related news, EVP Claudine Adamo sold 730 shares of Costco Wholesale stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value 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. The trade was a 10.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.10% of the stock is owned by corporate insiders.

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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