Allworth Financial LP Sells 9,724 Shares of Costco Wholesale Corporation $COST

Key Points

• Allworth Financial reduced its Costco stake by 13.2% in the second quarter, selling 9,724 shares and retaining 63,703 shares valued at approximately $59.6 million. Institutional investors collectively own 68.48% of Costco.
• Costco shares opened at $918.91, with a market capitalization of about $407.5 billion and a forward-looking valuation reflected in a P/E ratio of 46.22. The company pays a quarterly dividend of $1.47, equivalent to a 0.6% annual yield.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $1,056.03. However, the premium valuation, potential margin pressure and recent product rationing pose risks.

Allworth Financial LP lessened its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 13.2% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 63,703 shares of the retailer's stock after selling 9,724 shares during the period. Allworth Financial LP's holdings in Costco Wholesale were worth $59,592,000 as of its most recent filing with the SEC.

Other institutional investors also recently modified their holdings of the company. Arizona State Retirement System grew its position in shares of Costco Wholesale by 1.2% during the 2nd quarter. Arizona State Retirement System now owns 123,105 shares of the retailer's stock worth $115,161,000 after buying an additional 1,493 shares during the period. Waverly Advisors LLC raised its holdings in shares of Costco Wholesale by 79.2% during the second quarter. Waverly Advisors LLC now owns 87,623 shares of the retailer's stock valued at $81,968,000 after purchasing an additional 38,723 shares during the period. Bank OZK grew its stake in shares of Costco Wholesale by 6.1% in the 2nd quarter. Bank OZK now owns 4,663 shares of the retailer's stock valued at $4,362,000 after buying an additional 269 shares during the period. Empirical Finance LLC increased its position in Costco Wholesale by 3.6% in the 2nd quarter. Empirical Finance LLC now owns 15,385 shares of the retailer's stock valued at $14,392,000 after buying an additional 531 shares in the last quarter. Finally, Nykredit A S bought a new stake in Costco Wholesale in the 2nd quarter valued at about $113,356,000. Institutional investors own 68.48% of the company's stock.

Insider Buying and Selling at Costco Wholesale

In related news, Director Kenneth Denman sold 885 shares of the firm'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 of the company's stock, valued at $4,575,653.55. This trade 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 is available at this link. 0.10% of the stock is owned by insiders.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Dividend increase supports the investment case. Costco recently raised its dividend by 13%, reinforcing confidence in cash generation and adding to the appeal of the membership-based retailer, although the regular yield remains modest and special dividends can make the headline payout appear higher. Costco dividend article
• Positive Sentiment: Long-term business fundamentals remain a bullish backdrop. Analysts and commentators continue to point to Costco’s scale, limited product assortment, purchasing advantages and resilient same-store sales as reasons the stock could recover after trailing the S&P 500 and trading below its 52-week high. Fourth-quarter results, expected later this month, are the next major potential catalyst. Costco earnings preview
• Neutral Sentiment: Motor-oil pricing reflects supply pressures rather than a company-specific demand problem. Costco raised the price of a 10-quart case of Kirkland Signature full-synthetic motor oil to $57.99 and limited purchases to two cases per member per week. The changes follow higher crude-oil prices and supply disruptions linked to Middle East tensions and Saudi Arabia’s East-West pipeline closure. Higher prices may protect margins, but the restrictions could affect customer sentiment. Costco motor oil article
• Negative Sentiment: Rationing and sharply higher prices create reputational and traffic risks. Reports that Costco has also capped purchases of Mobil 1 oil—and that some motor-oil prices have risen substantially from last year—evoke earlier pandemic-era product shortages. While the merchandise is a small portion of revenue, frustrated members could view the move negatively or defer purchases. Costco motor oil rationing article
• Negative Sentiment: Valuation leaves limited room for disappointment. Costco trades at a premium earnings multiple, so investors may require strong sales, membership trends and profit guidance from the upcoming report to justify the valuation. Rising merchandise and operating costs could pressure margins if Costco cannot pass them through broadly. Costco stock performance article

Costco Wholesale Stock Up 1.6%

COST stock opened at $918.91 on Tuesday. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month 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 stock's 50 day moving average is $939.46 and its 200-day moving average is $973.86. The firm has a market capitalization of $407.52 billion, a PE ratio of 46.22, a P/E/G ratio of 3.77 and a beta of 0.86.

Costco Wholesale Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were issued a $1.47 dividend. The ex-dividend date was Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio is currently 29.58%.

Analyst Ratings Changes

Several brokerages have issued reports on COST. Bank of America increased their price target on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a report on Monday, June 1st. Oppenheimer upped their target price on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 19th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $1,091.00 target price on shares of Costco Wholesale in a report on Friday, September 4th. Finally, JPMorgan Chase & Co. reduced their price target on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating for the company in a research report on Thursday, July 9th. Twenty-two research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Costco Wholesale presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,056.03.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.

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