Russell Investments Group Ltd. Purchases 50,022 Shares of Costco Wholesale Corporation $COST

Key Points

• Russell Investments Group increased its Costco stake by 12.9% in the fourth quarter, buying 50,022 more shares and bringing its total holdings to 436,771 shares worth about $376.8 million.
• Institutional interest remains strong, with several other hedge funds also adding to Costco positions and institutions now owning about 68.48% of the stock.
• Analysts and recent commentary stay broadly bullish, citing strong traffic, sales momentum, e-commerce growth, and dividend growth, even though Costco still trades at a relatively rich valuation and some short-term market pressure remains possible.

Russell Investments Group Ltd. grew its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 12.9% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 436,771 shares of the retailer's stock after acquiring an additional 50,022 shares during the quarter. Costco Wholesale accounts for 0.4% of Russell Investments Group Ltd.'s holdings, making the stock its 24th biggest position. Russell Investments Group Ltd. owned approximately 0.10% of Costco Wholesale worth $376,788,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in COST. FORA Capital LLC bought a new stake in shares of Costco Wholesale during the 3rd quarter worth approximately $2,781,000. World Investment Advisors grew its stake in shares of Costco Wholesale by 8.4% in the fourth quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock valued at $15,835,000 after buying an additional 1,560 shares in the last quarter. Teacher Retirement System of Texas grew its stake in shares of Costco Wholesale by 24.5% in the fourth quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer's stock valued at $121,098,000 after buying an additional 27,625 shares in the last quarter. Curtis Advisory Group LLC increased its holdings in Costco Wholesale by 56.7% during the fourth quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer's stock worth $3,911,000 after buying an additional 1,641 shares during the last quarter. Finally, Mariner LLC increased its holdings in Costco Wholesale by 1.5% during the third quarter. Mariner LLC now owns 399,894 shares of the retailer's stock worth $370,140,000 after buying an additional 5,937 shares during the last quarter. 68.48% of the stock is owned by institutional investors.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Zacks highlighted Costco’s growing traffic, stronger comparable sales, and gas-driven member engagement, reinforcing that its value proposition is still attracting shoppers. Costco's Growing Traffic Shows the Power of Its Value Strategy
• Positive Sentiment: Another Zacks note said Costco screens well for earnings acceleration, pointing to rising EPS growth trends that can support further upside in the shares. Costco & 2 Earnings Acceleration Stocks to Watch for Solid Upside
• Positive Sentiment: Yahoo Finance and other commentary emphasized Costco’s record gasoline sales, e-commerce growth, wellness offerings, and ongoing store expansion, all of which reinforce the company’s long-term growth story. Costco Leans On Gasoline, E Commerce And Wellness To Deepen Member Value
• Positive Sentiment: Several articles framed Costco as a top long-term growth name and suggested the stock still has room to run if membership strength and comparable sales remain solid. Why Costco (COST) is a Top Growth Stock for the Long-Term
• Neutral Sentiment: Costco remains a heavily watched stock, with investor attention amplified by bullish price-target speculation and debate over whether the company can break above $1,100 over time. Can Costco Stock Break $1,100 by 2027?
• Negative Sentiment: Despite the constructive outlook, one market note said Costco was among retailers that fell even as lower oil prices could have helped consumers, showing the stock can still be pressured by broader rotation or lack of immediate catalyst. It Wasn’t a Strait of Hormuz Relief Rally, After All

Wall Street Analyst Weigh In

A number of analysts have commented on COST shares. Citigroup reiterated a "neutral" rating on shares of Costco Wholesale in a research note on Friday, February 20th. Bank of America upped their target price on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a "buy" rating in a report on Friday, May 29th. Deutsche Bank Aktiengesellschaft raised their target price on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Oppenheimer lifted their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a report on Tuesday, May 19th. Finally, Rothschild & Co Redburn upped 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-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $1,060.41.

Costco Wholesale Price Performance

NASDAQ:COST opened at $986.68 on Wednesday. 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 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The firm's 50-day simple moving average is $1,004.06 and its 200 day simple moving average is $968.46. The firm has a market cap of $437.57 billion, a price-to-earnings ratio of 49.63, a P/E/G ratio of 4.74 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (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 during the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the prior year, the firm earned $4.28 EPS. As a group, sell-side analysts predict that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The business also recently declared 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 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 0.6%. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale's dividend payout ratio (DPR) is currently 29.58%.

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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