Massachusetts Financial Services Co. MA lowered its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 6.4% during the 2nd quarter, Holdings Channel reports. The fund owned 129,208 shares of the retailer’s stock after selling 8,894 shares during the period. Massachusetts Financial Services Co. MA’s holdings in Costco Wholesale were worth $124,386,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other institutional investors also recently made changes to their positions in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of Costco Wholesale during the fourth quarter valued at approximately $27,000. Lifetime Wealth Management P.C. acquired a new stake in Costco Wholesale in the fourth quarter worth approximately $28,000. Mcguire Capital Advisors Inc. bought a new position in Costco Wholesale during the 4th quarter valued at $28,000. Entrust Financial LLC acquired a new position in shares of Costco Wholesale during the 4th quarter valued at $31,000. Finally, Joseph Group Capital Management acquired a new position in shares of Costco Wholesale during the 4th quarter valued at $33,000. 68.48% of the stock is owned by institutional investors and hedge funds.
Costco Wholesale News Roundup
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
Costco Wholesale Stock Performance
COST opened at $947.74 on Friday. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The firm has a market cap of $420.30 billion, a PE ratio of 47.67, a P/E/G ratio of 4.44 and a beta of 0.87. The business has a fifty day simple moving average of $947.14 and a 200-day simple moving average of $980.95. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50.
Costco Wholesale (NASDAQ:COST – Get Free Report) last announced its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The company had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same period last year, the firm earned $4.28 earnings per share. As a group, equities analysts predict that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal year.
Costco Wholesale Dividend Announcement
The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were paid a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s dividend payout ratio is currently 29.58%.
Wall Street Analysts Forecast Growth
A number of analysts have recently commented on the company. DA Davidson reissued a “neutral” rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a research note on Thursday, June 4th. Bank of America raised their target price on 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. BTIG Research reaffirmed a “buy” rating and set a $1,125.00 target price on shares of Costco Wholesale in a report on Friday, May 29th. Citigroup initiated coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price target on the stock. Finally, The Goldman Sachs Group upped their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a “buy” rating in a report on Friday, May 29th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $1,059.53.
View Our Latest Analysis on COST
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.
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