William Blair Investment Management LLC Increases Stock Holdings in Costco Wholesale Corporation $COST

Key Points

• William Blair Investment Management LLC increased its holdings in Costco by 6.5%, owning 376,485 shares worth approximately $372.7 million, making it the firm's 14th biggest position.
• Costco recently declared a quarterly dividend of $1.30, which will be paid on November 14th, representing an annualized dividend of $5.20 and a yield of 0.6%.
• Analysts have varying price targets for Costco, with Mizuho and Daiwa Capital Markets lowering their targets while Argus and Goldman Sachs have increased theirs, reflecting a range of investor sentiments amid a consensus rating of "Moderate Buy".

William Blair Investment Management LLC increased its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 6.5% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 376,485 shares of the retailer's stock after purchasing an additional 22,906 shares during the period. Costco Wholesale accounts for 1.0% of William Blair Investment Management LLC's investment portfolio, making the stock its 14th biggest position. William Blair Investment Management LLC owned about 0.08% of Costco Wholesale worth $372,698,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in the business. Nuveen LLC purchased a new stake in Costco Wholesale during the first quarter valued at about $3,461,159,000. Kingstone Capital Partners Texas LLC grew its position in Costco Wholesale by 418,980.3% during the second quarter. Kingstone Capital Partners Texas LLC now owns 2,359,422 shares of the retailer's stock valued at $2,335,686,000 after acquiring an additional 2,358,859 shares during the period. Vanguard Group Inc. grew its position in Costco Wholesale by 1.0% during the first quarter. Vanguard Group Inc. now owns 42,644,711 shares of the retailer's stock valued at $40,332,515,000 after acquiring an additional 443,101 shares during the period. National Bank of Canada FI grew its position in Costco Wholesale by 84.0% during the first quarter. National Bank of Canada FI now owns 812,188 shares of the retailer's stock valued at $768,114,000 after acquiring an additional 370,806 shares during the period. Finally, Valeo Financial Advisors LLC grew its position in Costco Wholesale by 2,369.5% during the second quarter. Valeo Financial Advisors LLC now owns 323,288 shares of the retailer's stock valued at $320,036,000 after acquiring an additional 310,197 shares during the period. Hedge funds and other institutional investors own 68.48% of the company's stock.

Insider Activity

In related news, EVP Russell D. Miller sold 3,381 shares of the business's stock in a transaction dated Monday, September 29th. The stock was sold at an average price of $915.00, for a total value of $3,093,615.00. Following the transaction, the executive vice president owned 9,740 shares in the company, valued at approximately $8,912,100. The trade was a 25.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Teresa A. Jones sold 600 shares of the business's stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $992.05, for a total value of $595,230.00. Following the completion of the transaction, the executive vice president owned 2,362 shares in the company, valued at approximately $2,343,222.10. This trade represents a 20.26% decrease in their position. The disclosure for this sale can be found here. Insiders own 0.18% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Mizuho lowered their price target on Costco Wholesale from $975.00 to $950.00 and set a "neutral" rating for the company in a research report on Thursday, October 9th. Daiwa Capital Markets lowered their price target on Costco Wholesale from $1,005.00 to $947.00 and set a "neutral" rating for the company in a research report on Tuesday, September 30th. Argus boosted their price target on Costco Wholesale from $1,170.00 to $1,200.00 and gave the company a "buy" rating in a research report on Monday, September 29th. The Goldman Sachs Group boosted their price target on Costco Wholesale from $1,333.00 to $1,418.00 and gave the company a "buy" rating in a research report on Friday, September 26th. Finally, Telsey Advisory Group restated an "outperform" rating and set a $1,100.00 price objective on shares of Costco Wholesale in a research note on Wednesday, September 24th. Nineteen analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat.com, Costco Wholesale currently has an average rating of "Moderate Buy" and a consensus price target of $1,068.15.

Costco Wholesale Trading Up 1.2%

NASDAQ:COST opened at $936.33 on Friday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.55 and a current ratio of 1.03. Costco Wholesale Corporation has a one year low of $867.34 and a one year high of $1,078.23. The business's 50-day simple moving average is $949.51 and its 200 day simple moving average is $971.49. The stock has a market cap of $414.96 billion, a price-to-earnings ratio of 51.42, a price-to-earnings-growth ratio of 5.61 and a beta of 0.98.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results on Thursday, September 25th. The retailer reported $5.87 EPS for the quarter, topping the consensus estimate of $5.81 by $0.06. Costco Wholesale had a return on equity of 30.09% and a net margin of 2.94%.The business had revenue of $86.16 billion for the quarter, compared to analysts' expectations of $86.01 billion. During the same quarter in the previous year, the firm posted $5.15 earnings per share. The company's revenue was up 8.1% compared to the same quarter last year. As a group, sell-side analysts predict that Costco Wholesale Corporation will post 18.03 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 14th. Investors of record on Friday, October 31st will be paid a $1.30 dividend. The ex-dividend date is Friday, October 31st. This represents a $5.20 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's payout ratio is 28.56%.

Costco Wholesale Company Profile

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.

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