1,910 Shares in Costco Wholesale Corporation $COST Bought by Birmingham Capital Management Co. Inc. AL

Key Points

• Birmingham Capital Management bought 1,910 Costco shares worth approximately $1.79 million, while institutional investors collectively own 68.48% of the company.
• Costco shares opened at $915.74, with a 52-week range of $844.06 to $1,096.50. The company pays a quarterly dividend of $1.47 per share, equal to a 0.6% annual yield.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $1,056.90, although Costco’s high valuation and regulatory scrutiny present potential risks.

Birmingham Capital Management Co. Inc. AL purchased a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,910 shares of the retailer's stock, valued at approximately $1,787,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. C M Bidwell & Associates Ltd. acquired a new position in shares of Costco Wholesale during the 2nd quarter worth about $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in Costco Wholesale in the 4th quarter valued at about $27,000. Burk Holdings LLC acquired a new stake in Costco Wholesale in the 2nd quarter valued at about $30,000. Manning & Napier Advisors LLC acquired a new stake in Costco Wholesale in the 2nd quarter valued at about $30,000. Finally, Mcguire Capital Advisors Inc. bought a new position in Costco Wholesale during the fourth quarter worth about $28,000. 68.48% of the stock is owned by institutional investors.

Costco Wholesale Stock Performance

Shares of COST stock opened at $915.74 on Friday. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50. The company has a market capitalization of $406.11 billion, a price-to-earnings ratio of 46.06, a PEG ratio of 3.80 and a beta of 0.86. The company has a 50-day simple moving average of $943.58 and a 200 day simple moving average of $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 Dividend Announcement

The company also recently disclosed 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. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale's payout ratio is currently 29.58%.

Key Costco Wholesale News

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

Insider Activity

In other news, Director Kenneth 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 value of $847,343.25. Following 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.10% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. Bank of America boosted their price target on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Roth Capital raised their price objective on Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a research report on Friday, May 29th. HC Wainwright reiterated a "buy" rating on shares of Costco Wholesale in a research note on Monday, June 1st. UBS Group boosted their target price on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a report on Wednesday, May 20th. Finally, Truist Financial boosted their target price on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a report on Friday, May 29th. Twenty-one analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Costco Wholesale has an average rating of "Moderate Buy" and a consensus target price of $1,056.90.

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.

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