98,607 Shares in Costco Wholesale Corporation $COST Purchased by Ieq Capital LLC

Key Points

• Ieq Capital LLC acquired 98,607 Costco shares during the second quarter, worth approximately $92.2 million. Institutional investors collectively own 68.48% of Costco’s outstanding stock.
• Costco shares were trading at $928.48, down 1.2%, with a market capitalization of about $411.8 billion and a relatively high price-to-earnings ratio of 46.70.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus and an average price target of $1,059.53. Costco also pays a quarterly dividend of $1.47, equivalent to a 0.6% yield.

Ieq Capital LLC purchased a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 98,607 shares of the retailer's stock, valued at approximately $92,244,000.

A number of other hedge funds also recently bought and sold shares of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in Costco Wholesale in the 4th quarter valued at $27,000. Mcguire Capital Advisors Inc. acquired a new position in Costco Wholesale during the fourth quarter worth $28,000. Lifetime Wealth Management P.C. acquired a new position in Costco Wholesale during the fourth quarter worth $28,000. C M Bidwell & Associates Ltd. purchased a new position in Costco Wholesale during the second quarter valued at $28,000. Finally, Entrust Financial LLC purchased a new position in Costco Wholesale during the fourth quarter valued at $31,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale Trading Down 1.2%

Shares of COST opened at $928.48 on Thursday. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. 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's fifty day moving average is $944.65 and its two-hundred day moving average is $978.84. The stock has a market cap of $411.76 billion, a PE ratio of 46.70, a price-to-earnings-growth ratio of 3.89 and a beta of 0.87.

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 paid a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale's dividend payout ratio (DPR) is currently 29.58%.

Costco Wholesale News Summary

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.

Insiders Place Their Bets

In related news, Director Kenneth D. Denman sold 885 shares of the business's stock in a transaction dated Tuesday, June 23rd. The shares were 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 in the company, 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 legal filing with the SEC, which can be accessed through the SEC website. Insiders own 0.10% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. The Goldman Sachs Group lifted their target price 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. Weiss Ratings lowered shares of Costco Wholesale from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, June 23rd. Mizuho set a $1,100.00 price objective on Costco Wholesale in a report on Monday, June 1st. HC Wainwright reiterated a "buy" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Finally, Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. Based on 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 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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