Palogic Value Management L.P. purchased a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST – Free Report) during the second quarter, HoldingsChannel.com reports. The institutional investor purchased 558 shares of the retailer’s stock, valued at approximately $522,000.
Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Geode Capital Management LLC raised its stake in shares of Costco Wholesale by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer’s stock valued at $8,919,573,000 after purchasing an additional 26,690 shares in the last quarter. Morgan Stanley increased its stake in Costco Wholesale by 1.1% during the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer’s stock valued at $8,212,433,000 after buying an additional 107,775 shares during the period. Bank of America Corp DE raised its position in shares of Costco Wholesale by 11.5% during the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock worth $7,488,203,000 after buying an additional 773,651 shares in the last quarter. Diamant Asset Management Inc. lifted its stake in shares of Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after acquiring an additional 6,720,130 shares during the period. Finally, Corient Private Wealth LLC boosted its holdings in shares of Costco Wholesale by 838.9% in the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock valued at $5,282,182,000 after acquiring an additional 5,472,968 shares in the last quarter. 68.48% of the stock is owned by institutional investors.
Wall Street Analyst Weigh In
A number of equities research analysts have weighed in on COST shares. Roth Capital upped their target price on Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a research report on Friday, May 29th. Sanford C. Bernstein set a $1,144.00 target price on Costco Wholesale in a research note on Friday. Guggenheim reaffirmed a “neutral” rating on shares of Costco Wholesale in a report on Monday, June 1st. Royal Bank Of Canada initiated coverage on shares of Costco Wholesale in a report on Monday, July 13th. They issued a “sector perform” rating and a $1,000.00 price target for the company. Finally, Truist Financial raised their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a “hold” rating in a research report on Friday, May 29th. Twenty-one equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,056.90.
Insider Buying and Selling at Costco Wholesale
In related news, Director Kenneth Denman sold 885 shares of the company’s stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director directly owned 4,779 shares of the company’s stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.10% of the company’s stock.
Costco Wholesale Trading Down 1.0%
NASDAQ COST opened at $915.74 on Friday. The firm’s 50 day moving average price is $943.58 and its two-hundred day moving average price is $977.75. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month high of $1,096.50. The stock has a market cap of $406.11 billion, a price-to-earnings ratio of 46.06, a PEG ratio of 3.80 and a beta of 0.86.
Costco Wholesale Dividend Announcement
The firm also recently declared a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were issued a dividend of $1.47 per share. The ex-dividend date was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s payout ratio is currently 29.58%.
Key Headlines Impacting Costco Wholesale
Here are the key news stories impacting Costco Wholesale this week:
- Positive Sentiment: Strong August sales: Net sales increased 9.9% year over year, with comparable sales rising across regions and digitally enabled sales advancing 17.9%. The figures point to resilient member demand and continued e-commerce momentum. Costco’s August Sales Rise 9.9% as Digital Growth Stays Strong
- Positive Sentiment: Analyst support remains broad: BTIG reiterated a Buy rating with a $1,125 target, while Bank of America maintained its Buy rating and $1,200 target. Analysts cited resilient core performance, market-share gains, and higher earnings estimates. BTIG Reaffirms Buy on Costco
- Positive Sentiment: Long-term shareholder appeal: Commentary highlighted Costco’s consistent dividend growth since 2004, membership model, customer loyalty, and potential for continued earnings expansion.
- Neutral Sentiment: Store expansion: Costco is reportedly considering a new location in Thompson’s Station, Tennessee, supporting its long-term warehouse growth strategy, although the potential site has no immediate earnings impact.
- Neutral Sentiment: Mixed analyst valuation signals: DA Davidson reaffirmed a Neutral rating with a $1,000 target, while Bernstein retained a Buy rating but lowered its target to $1,144, indicating less room for upside despite confidence in the business.
- Negative Sentiment: Valuation concerns: Jim Cramer and other commentators argued that COST trades at roughly 43–49 times earnings, leaving the stock vulnerable if growth slows or results merely meet expectations. Cramer Says Costco at 49 Times Earnings Is the Mistake Loyal Shoppers Keep Making
- Negative Sentiment: Regulatory risk: The Department of Justice expanded a beef-pricing antitrust inquiry to Costco, seeking information on prices, costs, margins, purchasing, and supply-chain practices. Potential compliance costs or scrutiny could pressure sentiment. US DOJ Widens Beef Price Inquiry
- Negative Sentiment: Costco Next shutdown: The company’s online marketplace reportedly went offline without notice, raising questions about its digital strategy, although the platform is not viewed as central to Costco’s core business. Costco Next Online Marketplace Shut Down
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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