Vancity Investment Management Ltd Sells 12,486 Shares of Costco Wholesale Corporation $COST

Key Points

• Vancity Investment Management reduced its Costco stake by 39.6% in Q4, selling 12,486 shares and leaving it with 19,051 shares worth about $16.4 million.
• Institutional ownership of Costco remains high, with several funds recently adding to positions and 68.48% of the stock still held by institutions and hedge funds.
• Analysts remain generally bullish on Costco, though valuation concerns persist: the stock has a Moderate Buy consensus with a $1,061.45 target, while shares traded down about 1.5% amid mixed views and premium-valuation worries.

Vancity Investment Management Ltd cut its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 39.6% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 19,051 shares of the retailer's stock after selling 12,486 shares during the quarter. Costco Wholesale comprises approximately 2.2% of Vancity Investment Management Ltd's holdings, making the stock its 17th biggest position. Vancity Investment Management Ltd's holdings in Costco Wholesale were worth $16,428,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also added to or reduced their stakes in the company. FORA Capital LLC bought a new stake in Costco Wholesale in the 3rd quarter valued at $2,781,000. World Investment Advisors boosted its position in Costco Wholesale by 8.4% during the fourth quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock worth $15,835,000 after purchasing an additional 1,560 shares during the period. Teacher Retirement System of Texas increased its holdings 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 purchasing an additional 27,625 shares during the last quarter. Curtis Advisory Group LLC increased its holdings in shares of Costco Wholesale by 56.7% in the fourth quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer's stock valued at $3,911,000 after purchasing an additional 1,641 shares during the last quarter. Finally, Mariner LLC raised its position in shares of Costco Wholesale by 1.5% in the third quarter. Mariner LLC now owns 399,894 shares of the retailer's stock valued at $370,140,000 after purchasing an additional 5,937 shares during the period. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco continues to show strong underlying demand, with May sales growth, high membership renewal rates, and faster-growing digital/e-commerce channels supporting the long-term growth story. How Investors May Respond To Costco (COST) Digital Momentum Amid Valuation Jitters And Macro Uncertainty
• Positive Sentiment: Costco lowered prices on some Kirkland Signature items, reinforcing its value proposition for inflation-conscious shoppers and potentially helping traffic and member loyalty. Why Weakness in Dividend-Paying Costco Stock Is a Strong Buying Opportunity
• Positive Sentiment: A new Costco gas station was approved in a Bay Area city, adding another potential traffic driver and incremental fuel-related sales opportunity. This Bay Area city approves new Costco gas station
• Neutral Sentiment: Citigroup initiated coverage with a neutral rating and a $1,020 price target, which is above the recent trading level but does not signal a strong near-term catalyst. Benzinga coverage of Citigroup initiation
• Negative Sentiment: Analyst commentary is divided, with one report noting that Costco shares fell after Citi and Bernstein issued conflicting views, adding to uncertainty around the stock’s premium valuation. Costco Stock (COST) Drops as Analysts Can’t Agree on the Big-Box Retailer
• Negative Sentiment: Several recent articles focus on whether Costco’s stock is too expensive near the $1,000 level, reflecting valuation jitters that can pressure shares when growth expectations are already high. Costco at $1,000: A Timeless Business, Is the Stock Still a Buy or a Bubble?

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. BMO Capital Markets raised their target price on shares of Costco Wholesale from $1,175.00 to $1,315.00 and gave the stock an "outperform" rating in a research note on Friday, March 6th. BTIG Research reissued a "buy" rating and issued a $1,125.00 price target on shares of Costco Wholesale in a report on Friday, May 29th. Telsey Advisory Group raised their price objective on shares of Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an "outperform" rating in a research report on Thursday, April 9th. UBS Group boosted their price objective on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a report on Wednesday, May 20th. Finally, DA Davidson reaffirmed a "neutral" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a research report on Thursday, June 4th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $1,061.45.

Costco Wholesale Trading Down 1.5%

Shares of Costco Wholesale stock opened at $951.45 on Friday. The firm has a 50-day moving average of $1,001.77 and a 200-day moving average of $969.14. The stock has a market cap of $421.95 billion, a PE ratio of 47.86, a PEG ratio of 4.68 and a beta of 0.88. 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.

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 $4.94 by ($0.01). The company had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same period in the prior year, the company earned $4.28 EPS. As a group, sell-side analysts forecast that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were paid a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Friday, May 1st. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's dividend payout ratio is 29.58%.

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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