Northwestern Mutual Wealth Management Co. Invests $177.24 Million in Costco Wholesale Corporation $COST

Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST) during the 2nd quarter, Holdings Channel reports. The fund acquired 189,471 shares of the retailer’s stock, valued at approximately $177,244,000.

A number of other large investors also recently modified their holdings of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in Costco Wholesale during the fourth quarter valued at about $27,000. Lifetime Wealth Management P.C. purchased a new position in shares of Costco Wholesale in the fourth quarter valued at about $28,000. C M Bidwell & Associates Ltd. bought a new position in shares of Costco Wholesale in the second quarter worth about $28,000. Mcguire Capital Advisors Inc. bought a new position in shares of Costco Wholesale in the fourth quarter worth about $28,000. Finally, Entrust Financial LLC bought a new position in shares of Costco Wholesale in the fourth quarter worth about $31,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Strong sales momentum supports the investment case. Costco reported August net sales of $23.70 billion, up 9.9% year over year. Fourth-quarter sales rose 11.3% to $93.9 billion, while fiscal-year sales increased 10.2% to $297.3 billion. Total comparable sales grew 8.4% for the year, and digitally enabled sales jumped 20.9%. Costco Wholesale Corporation Reports August Sales Results
• Positive Sentiment: Analyst sentiment remains favorable. Mizuho reiterated a Buy rating and maintained a $1,100 price target, citing confidence in Costco’s membership-driven growth. Recent analyst targets generally remain above the current trading level, with a reported six-month median target of $1,125. Analyst Reiterates Buy on Costco
• Neutral Sentiment: Calendar effects clouded the monthly comparison. Costco said the later timing of Labor Day reduced August total and comparable sales growth by slightly less than 75 basis points. Underlying performance remained positive, but investors may look for confirmation in the next report.
• Negative Sentiment: Costco Next was abruptly discontinued. The company shut down the online Costco Next marketplace without notice. While the service is unlikely to materially affect near-term financial results, the move could disappoint members and remove a customer-engagement perk. Costco has ended this online service without notice
• Negative Sentiment: Regulatory uncertainty increased. The U.S. Department of Justice expanded an investigation into rising beef prices to include Costco and other major retailers. Potential reputational, legal, or margin-related consequences create an overhang, although no wrongdoing has been established. DOJ expands beef price investigation
• Negative Sentiment: Valuation leaves little room for disappointment. Costco trades at roughly 47 times earnings, with a PEG ratio above 4, and shares remain below their 50-day and 200-day moving averages. Insider activity has also consisted of sales rather than purchases in recent months, adding to investor caution.

Insider Transactions at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of the company’s 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 sale, the director directly owned 4,779 shares of the company’s stock, valued at $4,575,653.55. This represents a 15.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several analysts recently issued reports on COST shares. Guggenheim reissued a “neutral” rating on shares of Costco Wholesale in a research note on Monday, June 1st. JPMorgan Chase & Co. dropped their price target on Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating for the company in a research note on Thursday, July 9th. Oppenheimer increased their price objective on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an “outperform” rating in a report on Tuesday, May 19th. The Goldman Sachs Group lifted their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a “buy” rating in a research report on Friday, May 29th. Finally, Truist Financial boosted their target price on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a report on Friday, May 29th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $1,059.53.

Costco Wholesale Trading Down 1.2%

Shares of COST stock opened at $928.48 on Thursday. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The stock has a market capitalization of $411.76 billion, a price-to-earnings ratio of 46.70, a price-to-earnings-growth ratio of 3.89 and a beta of 0.87. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The stock’s 50-day moving average price is $944.65 and its 200-day moving average price is $978.84.

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 $1.47 dividend. 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 payout ratio is presently 29.58%.

Costco Wholesale Company 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.