A look at the shareholders of Costco Wholesale Corporation (NASDAQ: COST) can tell us which group is more powerful. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.
Costco Wholesale has a market cap of US $ 227 billion, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. In the graph below, we can see that institutional investors have bought into the company. Let’s take a closer look at what different types of shareholders can tell us about Costco Wholesale.
NasdaqGS: Ownership Cost Breakdown of November 7, 2021
What does institutional ownership tell us about Costco Wholesale?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have some institutions listed, especially if they are growing.
As you can see, institutional investors have a large stake in Costco Wholesale. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Costco Wholesale’s revenue history below. Of course, the future is what really matters.
NasdaqGS: COST Earnings and Revenue Growth November 7, 2021
Institutional investors own more than 50% of the company, so together they can likely have a strong influence on the decisions of the board. Costco Wholesale is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc. with 8.4% of the shares outstanding. Meanwhile, the second and third shareholders hold 6.8% and 3.8% of the outstanding shares respectively.
Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely disseminated and there is no dominant shareholder.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Insider Ownership of Costco Wholesale
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our most recent data indicates that insiders own less than 1% of Costco Wholesale Corporation. Being so important, we wouldn’t expect insiders to own a large chunk of the shares. Collectively, they own $ 539 million in stock. It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.
General public property
With 31% ownership, the general public has some influence over Costco Wholesale. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Costco Wholesale, there are many other factors that we need to consider. Note that Costco Wholesale displays 2 warning signs in our investment analysis , you must know…
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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