Welch & Forbes LLC Purchases 911 Shares of Costco Wholesale Corporation $COST

Welch & Forbes LLC increased its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST) by 0.6% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 162,277 shares of the retailer’s stock after purchasing an additional 911 shares during the period. Costco Wholesale makes up about 1.8% of Welch & Forbes LLC’s holdings, making the stock its 12th biggest position. Welch & Forbes LLC’s holdings in Costco Wholesale were worth $151,805,000 as of its most recent SEC filing.

A number of other hedge funds have also added to or reduced their stakes in the business. World Investment Advisors raised its stake in Costco Wholesale by 8.4% during the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock worth $15,835,000 after buying an additional 1,560 shares during the period. Teacher Retirement System of Texas grew its stake in Costco Wholesale by 24.5% in the fourth quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer’s stock valued at $121,098,000 after acquiring an additional 27,625 shares during the period. Sarasin & Partners LLP increased its holdings in shares of Costco Wholesale by 6.9% during the second quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock valued at $200,372,000 after acquiring an additional 13,795 shares in the last quarter. Perryman Financial Advisory Inc. AD acquired a new position in shares of Costco Wholesale during the fourth quarter worth approximately $9,300,000. Finally, Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust acquired a new position in shares of Costco Wholesale during the fourth quarter worth approximately $5,813,000. 68.48% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research firms have weighed in on COST. Roth Capital raised their price objective on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a research note on Friday, May 29th. JPMorgan Chase & Co. decreased their target price on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating for the company in a research report on Thursday, July 9th. Citigroup started coverage on shares of Costco Wholesale in a report on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 target price on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $1,120.00 price target on shares of Costco Wholesale in a research report on Thursday, August 6th. Finally, Bank of America boosted their price objective on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $1,059.53.

Costco Wholesale Stock Up 0.8%

COST opened at $961.35 on Wednesday. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The firm has a market capitalization of $426.34 billion, a P/E ratio of 48.36, a PEG ratio of 4.57 and a beta of 0.87. The company’s 50-day moving average is $949.20 and its 200 day moving average is $981.20. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61.

Costco Wholesale (NASDAQ:COST) last issued its quarterly earnings data 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). The firm had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same period in the previous year, the company posted $4.28 earnings per share. Research analysts expect that Costco Wholesale Corporation will post 20.42 earnings per share for the current fiscal year.

Costco Wholesale Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were issued a $1.47 dividend. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio is currently 29.58%.

Trending Headlines about Costco Wholesale

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Costco plans to offer co-branded Medicare Advantage plans with nonprofit insurer SCAN Group, initially in two states pending regulatory approval. The offerings may eventually include pharmacy, vision, hearing and over-the-counter benefits, potentially increasing member engagement and monetization. Costco launching Medicare Advantage plans with SCAN Group
• Positive Sentiment: Analysts and market commentary continue to highlight Costco’s Executive membership growth, digital sales conversion and rising fee income as evidence that the company is extracting more value from its membership base. Costco also retains broadly favorable analyst coverage, with a consensus view around “Moderate Buy.” Can Costco Stock Reach New Highs in Member Monetization?
• Neutral Sentiment: Costco brought back a popular Kirkland product discontinued two years ago. The move may support customer goodwill and traffic, but it is unlikely to materially affect earnings or valuation. Costco discontinued this Kirkland favorite 2 years ago. Now it’s back
• Negative Sentiment: Despite a 121% five-year total return, Costco’s valuation remains a concern. Its elevated earnings multiple leaves less room for disappointment, particularly after the latest quarterly EPS slightly missed estimates, even though revenue exceeded expectations. Costco Stock Looks Fully Priced Despite 121% Returns And Earnings Questions

Insider Activity

In related news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction that occurred 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 completion of the sale, the director directly owned 4,779 shares of the company’s stock, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.10% of the stock is currently owned by corporate insiders.

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.