Advisors Preferred LLC Takes Position in Costco Wholesale Corporation $COST

Key Points

• Advisors Preferred LLC initiated a Costco position by purchasing 13,138 shares worth approximately $12.5 million, making Costco 1.9% of its portfolio and its 14th-largest holding.
• Institutional investors own 68.48% of Costco’s shares, while the stock recently traded at $939.96 with a high valuation, including a P/E ratio of 47.28. Costco also pays a quarterly dividend of $1.47, yielding about 0.6% annually.
• Wall Street’s outlook remains positive overall: 22 analysts rate Costco a Buy, 11 rate it Hold and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $1,059.53.

Advisors Preferred LLC purchased a new position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund purchased 13,138 shares of the retailer's stock, valued at approximately $12,503,000. Costco Wholesale comprises about 1.9% of Advisors Preferred LLC's investment portfolio, making the stock its 14th biggest holding.

A number of other hedge funds also recently bought and sold shares of COST. Brighton Jones LLC lifted its holdings in shares of Costco Wholesale by 12.3% during the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock valued at $18,165,000 after purchasing an additional 2,172 shares in the last quarter. Revolve Wealth Partners LLC increased its holdings in Costco Wholesale by 13.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock worth $1,029,000 after buying an additional 130 shares in the last quarter. Sivia Capital Partners LLC increased its holdings in Costco Wholesale by 4.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock worth $3,814,000 after buying an additional 165 shares in the last quarter. Pinnacle Wealth Planning Services Inc. raised its position in Costco Wholesale by 1.1% in the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock worth $2,089,000 after buying an additional 23 shares during the last quarter. Finally, Schnieders Capital Management LLC. raised its position in Costco Wholesale by 2.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock worth $8,416,000 after buying an additional 182 shares during the last quarter. Institutional investors own 68.48% of the company's stock.

Costco Wholesale Trading Down 0.4%

Shares of NASDAQ:COST opened at $939.96 on Wednesday. The stock has a market capitalization of $416.85 billion, a price-to-earnings ratio of 47.28, a PEG ratio of 4.31 and a beta of 0.87. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The stock's 50-day simple moving average is $945.29 and its two-hundred day simple moving average is $979.34. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50.

Costco Wholesale Announces Dividend

The firm also recently disclosed 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 was Friday, July 24th. Costco Wholesale's dividend payout ratio is 29.58%.

Insider Buying and Selling at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of the firm's stock in a transaction that occurred on Tuesday, June 23rd. The shares were 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 trade represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.10% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Citigroup started coverage on shares of Costco Wholesale in a report on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 price target on the stock. Guggenheim reissued a "neutral" rating on shares of Costco Wholesale in a report on Monday, June 1st. The Goldman Sachs Group increased 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. Oppenheimer raised their target price on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a report on Tuesday, May 19th. Finally, 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 target price on the stock. Twenty-two analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $1,059.53.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Earnings expectations remain favorable. Costco’s history of exceeding estimates, combined with analysts’ expectations for strong sales and earnings momentum, could support the shares ahead of the next quarterly report. Why Costco Could Beat Earnings Estimates Again
• Positive Sentiment: Analyst maintains bullish outlook. Mizuho reiterated a Buy rating and a $1,100 price target, citing confidence in Costco’s membership-driven growth and core operating performance. Analyst Reiterates Buy on Costco
• Positive Sentiment: International expansion offers a longer-term growth driver. Solid international comparable sales, additional warehouse capacity and expansion opportunities in Asia and Europe could gradually make overseas markets more important to Costco’s growth. Can International Markets Become Costco’s Biggest Driver?
• Positive Sentiment: New-store growth continues. A large Southern California warehouse is nearing completion, highlighting Costco’s ongoing domestic expansion and potential membership and sales contributions. Costco’s New California Location
• Neutral Sentiment: Costco is partnering with SCAN Health on a Medicare Advantage plan, potentially broadening member benefits and customer engagement, though the direct financial impact remains unclear. Why Costco? Experts Weigh In on SCAN Health’s New MA Plan
• Neutral Sentiment: Fall bakery promotions and favorable consumer coverage reinforce Costco’s retail appeal but are unlikely to materially change near-term earnings. Costco Fall Bakery Items
• Negative Sentiment: Valuation is the primary risk. Commentary argues that Costco’s exceptional operating record and decade-long stock gains are already reflected in a high earnings multiple, leaving less room for disappointment and potentially limiting upside. Why Investors Should Pause
• Negative Sentiment: Target may offer a more attractive risk-reward profile because of its lower valuation and improving momentum, creating a relative headwind for COST. Costco vs. Target
• Negative Sentiment: Walmart’s new rotisserie-chicken offering intensifies competition in a high-visibility Costco category, although the immediate impact on Costco’s results is uncertain. Walmart Challenges Costco With Rotisserie Chicken

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.

Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST - Free Report).

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