William Blair Investment Management LLC Purchases 5,728 Shares of Costco Wholesale Corporation $COST

Key Points

• William Blair Investment Management increased its Costco position by 1.8% in the fourth quarter, buying 5,728 more shares and bringing its total holding to 328,468 shares worth about $283.3 million.
• Costco posted better-than-expected quarterly results, with EPS of $4.58 versus $4.55 expected and revenue of $69.6 billion, up 9.2% from a year earlier.
• The company also raised its quarterly dividend to $1.47 per share from $1.30, while analysts remain broadly positive with a consensus rating of Moderate Buy and an average target price of $1,052.60.

William Blair Investment Management LLC raised its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 1.8% in the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 328,468 shares of the retailer's stock after purchasing an additional 5,728 shares during the quarter. Costco Wholesale accounts for about 0.8% of William Blair Investment Management LLC's investment portfolio, making the stock its 21st biggest holding. William Blair Investment Management LLC owned 0.07% of Costco Wholesale worth $283,251,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of the company. Brighton Jones LLC grew its stake in shares of Costco Wholesale by 12.3% in the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock worth $18,165,000 after acquiring an additional 2,172 shares during the period. Revolve Wealth Partners LLC grew its stake in shares of Costco Wholesale by 13.1% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock worth $1,029,000 after acquiring an additional 130 shares during the period. Sivia Capital Partners LLC grew its stake in shares of Costco Wholesale by 4.5% in the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock worth $3,814,000 after acquiring an additional 165 shares during the period. Pinnacle Wealth Planning Services Inc. grew its stake in shares of Costco Wholesale by 1.1% in the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock worth $2,089,000 after acquiring an additional 23 shares during the period. Finally, Schnieders Capital Management LLC. grew its stake in shares of Costco Wholesale by 2.2% in the second quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock worth $8,416,000 after acquiring an additional 182 shares during the period. 68.48% of the stock is currently owned by institutional investors.

Costco Wholesale Stock Performance

COST opened at $1,028.24 on Friday. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. The company has a market cap of $456.18 billion, a price-to-earnings ratio of 53.47, a PEG ratio of 5.06 and a beta of 0.92. The company's 50 day moving average is $1,007.87 and its 200 day moving average is $960.13. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.55 by $0.03. The company had revenue of $69.60 billion for the quarter, compared to the consensus estimate of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. The firm's revenue was up 9.2% compared to the same quarter last year. During the same quarter last year, the firm posted $4.02 earnings per share. On average, equities research analysts predict that Costco Wholesale Corporation will post 20.33 EPS for the current year.

Costco Wholesale Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were issued 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 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Friday, May 1st. Costco Wholesale's payout ratio is presently 30.58%.

Insiders Place Their Bets

In other Costco Wholesale 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 transaction of $732,204.60. Following the transaction, the executive vice president owned 6,121 shares of the company's stock, 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 document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.10% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on COST. UBS Group lifted their price target 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. BTIG Research reiterated a "buy" rating and issued a $1,115.00 price target on shares of Costco Wholesale in a research note on Thursday, March 5th. Mizuho raised their price objective on shares of Costco Wholesale from $1,065.00 to $1,100.00 and gave the stock an "outperform" rating in a report on Thursday, April 16th. The Goldman Sachs Group dropped their price objective on shares of Costco Wholesale from $1,171.00 to $1,088.00 and set a "buy" rating on the stock in a report on Friday, March 6th. Finally, Truist Financial raised their price objective on shares of Costco Wholesale from $926.00 to $977.00 and gave the stock a "hold" rating in a report on Friday, March 6th. Twenty-two 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's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $1,052.60.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco remains a top momentum and growth name, with multiple recent pieces highlighting strong long-term performance and continued investor interest as the shares trade near record levels. Why Costco (COST) is a Top Momentum Stock for the Long-Term
• Positive Sentiment: Speculation about a possible stock split has intensified after Costco broke back above the $1,000 share-price milestone, which can boost sentiment by making the stock seem more accessible to retail investors. Costco Stock Split Rumors Explode as COST Smashes $1,000 Milestone Again
• Positive Sentiment: Analysts and market coverage continue to point to Costco’s solid operating momentum and long-term return profile, reinforcing the view that the business is executing well even after a big run-up. A Look At Costco Wholesale (COST) Valuation As Shares Trade Near Recent Highs
• Neutral Sentiment: Costco is expanding its footprint, including rezoning and land purchase activity for new locations, which supports long-term growth but is not likely to move the stock much on its own. New details emerge in proposed north Macon Costco project
• Neutral Sentiment: Costco is also seeing incremental membership-related promotion and seasonal deal coverage, which may help traffic but appears too small to materially affect the share price near term. This Costco deal cuts the price of membership to $45 - here's how to get it
• Negative Sentiment: Near-term pressure is coming from valuation concerns: several articles note that Costco’s stock is already priced for strong execution, leaving little room for disappointment after the recent rally. Costco Q3 Earnings Preview: Great Business With Limited Upside
• Negative Sentiment: Costco also traded lower in sympathy with Walmart after Walmart’s earnings and guidance disappointed investors, sparking broader concern about the consumer-retail backdrop. Costco Stock Dips After Walmart's Q1 Report: What's Going On?
• Negative Sentiment: Costco is facing headlines around tariff refunds and a tax dispute in Japan, adding some legal and regulatory noise, though these issues do not appear to be the main driver of today’s move. Costco suit highlights gaps in $166B tariff refund process

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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