Costco Wholesale Corporation $COST Shares Acquired by Capital International Investors

Capital International Investors grew its stake in shares of Costco Wholesale Corporation (NASDAQ:COST) by 21.6% in the 4th quarter, HoldingsChannel reports. The firm owned 640,367 shares of the retailer’s stock after acquiring an additional 113,842 shares during the quarter. Capital International Investors’ holdings in Costco Wholesale were worth $552,236,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of the stock. FORA Capital LLC acquired a new stake in shares of Costco Wholesale in the 3rd quarter valued at $2,781,000. World Investment Advisors boosted its holdings in shares of Costco Wholesale by 8.4% in the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock valued at $15,835,000 after purchasing an additional 1,560 shares in the last quarter. Teacher Retirement System of Texas boosted its holdings in shares of Costco Wholesale by 24.5% in the 4th 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 in the last quarter. Curtis Advisory Group LLC boosted its holdings in shares of Costco Wholesale by 56.7% in the 4th 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 in the last quarter. Finally, Mariner LLC boosted its holdings in shares of Costco Wholesale by 1.5% in the 3rd 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 in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of brokerages have weighed in on COST. Citigroup reaffirmed a “neutral” rating on shares of Costco Wholesale in a report on Friday, February 20th. DA Davidson reaffirmed a “neutral” rating and issued a $1,000.00 target price on shares of Costco Wholesale in a report on Thursday. BMO Capital Markets raised their target price on Costco Wholesale from $1,175.00 to $1,315.00 and gave the company an “outperform” rating in a report on Friday, March 6th. Truist Financial raised their target price on Costco Wholesale from $977.00 to $1,011.00 and gave the company a “hold” rating in a report on Friday, May 29th. Finally, HC Wainwright reaffirmed a “buy” rating on shares of Costco Wholesale in a report on Monday, June 1st. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $1,060.41.

Costco Wholesale Price Performance

Shares of COST opened at $971.87 on Monday. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50. The stock has a market capitalization of $431.00 billion, a price-to-earnings ratio of 48.89, a PEG ratio of 4.71 and a beta of 0.88. 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 stock has a fifty day moving average of $1,006.71 and a 200-day moving average of $964.35.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 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 firm had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. During the same quarter in the previous year, the company posted $4.28 earnings per share. As a group, sell-side analysts anticipate that Costco Wholesale Corporation will post 20.38 earnings per share for the current fiscal year.

Costco Wholesale Increases Dividend

The company 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 dividend on an annualized basis 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 currently 29.58%.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco posted another strong month, with May net sales up 14.5% year over year to $24.01 billion and comparable sales still running at a healthy pace, reinforcing the view that traffic and spending trends remain solid. Costco Wholesale Corporation Reports May Sales Results
• Positive Sentiment: Analysts continued to point to Costco’s defensive fundamentals, strong U.S. comparable sales, fuel-driven traffic, and growing digital business as reasons for optimism on the stock. Costco Stock (COST) Keeps Wall Street Split despite Accelerating Sales
• Positive Sentiment: Costco’s ability to hold up during the broader market sell-off underscored its reputation as a defensive retailer, which may have helped support investor interest. Why Costco Stock Held Steady During Friday’s Market Sell-Off
• Neutral Sentiment: Several articles framed Costco as a high-quality long-term compounder, but also emphasized that its premium valuation leaves less room for error if growth slows. Costco stock price shocks market despite major blowout quarter
• Neutral Sentiment: Costco’s valuation remains a debate point on Wall Street, with some analysts maintaining Buy ratings and high price targets while others argue the stock already reflects much of the good news. Costco: Robust Comps and Reaccelerating Digital Sales Support Buy Rating, Price Target Reaffirmed at $1275
• Negative Sentiment: One recent note argued that Costco’s strong quarter was not enough to offset valuation worries, suggesting investors may be hesitant to pay up after the recent sales-driven rally. Costco’s Strong Quarter Still Leaves Investors with a Valuation Problem

About Costco Wholesale

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.