Costco Wholesale faces stock split speculation amid rising institutional investment

Costco Wholesale Corporation is seeing significant institutional interest and speculation regarding a potential stock split. Martin Capital Partners LLC recently increased its position in the retailer by 1,217.6% during the third quarter, bringing its total holdings to 5,178 shares. Other major firms have also adjusted their stakes, including State Street Corp, which increased its position by 31.7%, and Diamant Asset Management Inc., which significantly raised its holdings in the first quarter.

As Costco's share price approaches $1,000, analysts suggest a stock split may be imminent. The company has not issued a stock split since more than 26 years ago, when its last 2-for-1 split occurred. This speculation comes amid strong financial performance, with annual revenue growing from $32 billion in 2020 to $303 billion, and a 22-year streak of annual dividend hikes.