Allworth Financial LP Invests $59.59 Million in Costco Wholesale Corporation $COST

Key Points

• Allworth Financial LP initiated a $59.59 million Costco stake by purchasing 63,703 shares in the second quarter. Hedge funds and institutional investors collectively own 68.48% of COST.
• Wall Street remains broadly positive, with 22 Buy, 11 Hold and one Sell rating, producing a “Moderate Buy” consensus and an average price target of $1,059.53.
• Costco’s strong membership-driven growth and international expansion support the outlook, but its elevated valuation remains a key risk: the stock trades near $939.96 at a P/E ratio of 47.28 and offers a 0.6% dividend yield.

Allworth Financial LP bought a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 63,703 shares of the retailer's stock, valued at approximately $59,592,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in Costco Wholesale during the fourth quarter valued at $27,000. Lifetime Wealth Management P.C. purchased a new position in shares of Costco Wholesale in the 4th quarter worth $28,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale in the 4th quarter worth about $28,000. Entrust Financial LLC bought a new stake in shares of Costco Wholesale in the 4th quarter worth about $31,000. Finally, Manning & Napier Advisors LLC raised its position in shares of Costco Wholesale by 750.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer's stock valued at $34,000 after buying an additional 30 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Costco Wholesale News Summary

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

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on COST. HC Wainwright reaffirmed a "buy" rating on shares of Costco Wholesale in a report on Monday, June 1st. Truist Financial boosted their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research note on Friday, May 29th. Weiss Ratings downgraded Costco Wholesale from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, June 23rd. Oppenheimer raised their price objective on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a research note on Tuesday, May 19th. Finally, JPMorgan Chase & Co. lowered their price objective 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. 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. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $1,059.53.

Costco Wholesale Price Performance

COST stock opened at $939.96 on Wednesday. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. 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 company has a 50-day moving average price of $945.29 and a 200 day moving average price of $979.34. The stock has a market cap of $416.85 billion, a PE ratio of 47.28, a P/E/G ratio of 4.31 and a beta of 0.87.

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 annualized dividend and a yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is presently 29.58%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the business'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 completion of the transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.10% of the stock is currently owned by insiders.

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).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source