Capital Research Global Investors Trims Stock Position in Costco Wholesale Corporation $COST

Capital Research Global Investors cut its stake in shares of Costco Wholesale Corporation (NASDAQ:COST) by 33.8% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 575,713 shares of the retailer’s stock after selling 293,643 shares during the period. Capital Research Global Investors owned approximately 0.13% of Costco Wholesale worth $496,461,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in Costco Wholesale by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer’s stock valued at $37,615,889,000 after acquiring an additional 165,349 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Costco Wholesale by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer’s stock worth $8,919,573,000 after buying an additional 26,690 shares in the last quarter. Norges Bank purchased a new position in shares of Costco Wholesale during the 4th quarter worth approximately $5,195,415,000. Bank of New York Mellon Corp raised its stake in shares of Costco Wholesale by 5.1% during the 4th quarter. Bank of New York Mellon Corp now owns 3,518,341 shares of the retailer’s stock worth $3,034,006,000 after buying an additional 170,979 shares in the last quarter. Finally, Amundi raised its stake in shares of Costco Wholesale by 45.0% during the 3rd quarter. Amundi now owns 3,176,606 shares of the retailer’s stock worth $2,893,697,000 after buying an additional 986,182 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on COST shares. TD Cowen reissued a “buy” rating and set a $1,175.00 target price on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Wells Fargo & Company increased their target price on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 9th. Daiwa Securities Group increased their target price on Costco Wholesale from $917.00 to $975.00 and gave the stock a “neutral” rating in a research note on Tuesday, March 10th. HC Wainwright reissued a “buy” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Finally, Oppenheimer increased their target price on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 19th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $1,060.41.

Costco Wholesale Stock Performance

COST opened at $971.87 on Monday. The stock has a market cap of $431.00 billion, a P/E ratio of 48.89, a P/E/G ratio of 4.71 and a beta of 0.88. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The stock’s 50 day simple moving average is $1,006.71 and its 200 day simple moving average is $964.35. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). The firm had revenue of $70.53 billion during 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 quarter in the prior year, the company earned $4.28 EPS. As a group, equities analysts anticipate that Costco Wholesale Corporation will post 20.38 EPS for the current fiscal year.

Costco Wholesale Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were issued a $1.47 dividend. The ex-dividend date was Friday, May 1st. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. This is an increase from Costco Wholesale’s previous quarterly dividend of $1.30. Costco Wholesale’s payout ratio is currently 29.58%.

Key Costco Wholesale News

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

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.