TD Asset Management Inc trimmed its stake in Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 23.1% in the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 720,407 shares of the retailer’s stock after selling 216,823 shares during the quarter. TD Asset Management Inc owned about 0.16% of Costco Wholesale worth $673,919,000 as of its most recent filing with the SEC.
Other large investors also recently bought and sold shares of the company. Boomfish Wealth Group LLC boosted its holdings in shares of Costco Wholesale by 5.0% in the 2nd quarter. Boomfish Wealth Group LLC now owns 627 shares of the retailer’s stock valued at $586,000 after purchasing an additional 30 shares during the last quarter. Provident Wealth Management LLC purchased a new stake in shares of Costco Wholesale during the 2nd quarter valued at $202,000. BCGM Wealth Management LLC increased its holdings in shares of Costco Wholesale by 3.6% during the 2nd quarter. BCGM Wealth Management LLC now owns 402 shares of the retailer’s stock worth $376,000 after buying an additional 14 shares during the last quarter. SmartHarvest Portfolios LLC increased its holdings in shares of Costco Wholesale by 2.0% during the 2nd quarter. SmartHarvest Portfolios LLC now owns 1,977 shares of the retailer’s stock worth $1,850,000 after buying an additional 38 shares during the last quarter. Finally, Suncoast Equity Management purchased a new position in shares of Costco Wholesale in the 2nd quarter worth $1,318,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.
Analyst Upgrades and Downgrades
COST has been the topic of a number of research reports. Bank of America raised their target price on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a “buy” rating in a research note on Friday, May 29th. Citigroup initiated coverage on Costco Wholesale in a report on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price target for the company. JPMorgan Chase & Co. cut their price objective on Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating on the stock in a research report on Thursday, July 9th. Truist Financial boosted their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a research note on Friday, May 29th. Finally, BTIG Research reaffirmed a “buy” rating and issued a $1,125.00 target price on shares of Costco Wholesale in a research report on Friday, May 29th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $1,059.53.
Costco Wholesale Price Performance
Shares of COST stock opened at $947.74 on Monday. The company has a market capitalization of $420.30 billion, a PE ratio of 47.67, a price-to-earnings-growth ratio of 4.51 and a beta of 0.87. The firm has a fifty day simple moving average of $947.14 and a 200-day simple moving average of $981.04. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50.
Costco Wholesale (NASDAQ:COST – Get Free Report) 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). 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 for the quarter, compared to analyst estimates of $70.12 billion. During the same period in the previous year, the business posted $4.28 earnings per share. Equities research analysts anticipate that Costco Wholesale Corporation will post 20.42 earnings per share for the current fiscal year.
Costco Wholesale Dividend Announcement
The firm also recently announced a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale’s payout ratio is presently 29.58%.
Costco Wholesale News Summary
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Medicare expansion creates a new growth opportunity. Costco is partnering with SCAN Group to offer Costco-branded Medicare Advantage and supplemental plans in select states. The initiative targets Costco’s large senior-member base and gives the company exposure to the approximately $600 billion Medicare market without requiring it to become a traditional insurer. Costco to Offer Medicare Plans for Older Adults
- Positive Sentiment: Costco raised its dividend by 13.1%. The increase reinforces the company’s strong cash-generation profile and may improve its appeal to income-oriented investors, although the stock’s high valuation limits its current dividend yield. Costco Just Upped Its Dividend
- Positive Sentiment: Additional monetization opportunities could support long-term growth. Analysts and commentators point to Costco’s retail-media business, AI-powered search capabilities and pharmacy operations as emerging growth engines alongside membership renewals, warehouse expansion and Kirkland Signature products. Costco Is Quietly Building Its Next Big Growth Engine
- Neutral Sentiment: Costco’s relative resilience compared with Walmart highlights its value proposition. Walmart reported weaker U.S. traffic and comparable-sales growth, while Costco was less affected, suggesting its membership model and perceived value may be helping it navigate consumer affordability pressures. Walmart Drops on Slow Same-Store Sales Growth
- Neutral Sentiment: A potential stock split is speculative. Costco shares have appreciated substantially since the prior 2-for-1 split 26 years ago. A future split could improve accessibility and trading liquidity, but it would not change the company’s underlying value or fundamentals. Costco Stock Split Analysis
- Negative Sentiment: Valuation and modest earnings pressure remain risks. Costco trades at a lofty earnings multiple, while its latest quarterly EPS narrowly missed estimates despite revenue exceeding expectations. That premium leaves less room for disappointment if membership growth, margins or consumer spending weaken.
- Negative Sentiment: The Medicare initiative will require execution. Entering a regulated, competitive insurance market could diversify revenue, but the pilot’s limited geographic rollout and potential healthcare-related complexity mean meaningful financial benefits may take time to develop. Costco Enters the Medicare Insurance Market
Insider Activity at Costco Wholesale
In related news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares of the company’s stock, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 0.10% of the company’s stock.
Costco Wholesale 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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