Annex Advisory Services LLC Lowers Stock Holdings in Costco Wholesale Corporation $COST

Key Points

• Annex Advisory Services reduced its Costco stake by 3.5% in the second quarter, selling 1,418 shares and retaining 38,700 shares valued at approximately $36.2 million. Institutional investors collectively own 68.48% of the company.
• Costco continues to show strong operating momentum, with July net sales rising 10.7% year over year and global comparable sales increasing 8.9%. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $1,059.53.
• Valuation remains a key concern: Costco trades at a trailing P/E of about 47.5, meaning further upside may depend on sustained comparable-sales growth, membership strength and solid upcoming earnings results.

Annex Advisory Services LLC reduced its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 3.5% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 38,700 shares of the retailer's stock after selling 1,418 shares during the period. Annex Advisory Services LLC's holdings in Costco Wholesale were worth $36,203,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the stock. Insight Wealth Strategies LLC raised its stake in shares of Costco Wholesale by 80.7% during the second quarter. Insight Wealth Strategies LLC now owns 383 shares of the retailer's stock valued at $354,000 after acquiring an additional 171 shares in the last quarter. Processus Wealth & Capital Management LLC grew its stake in Costco Wholesale by 0.4% in the second quarter. Processus Wealth & Capital Management LLC now owns 5,019 shares of the retailer's stock worth $4,696,000 after purchasing an additional 20 shares in the last quarter. Whitener Capital Management Inc. increased its holdings in Costco Wholesale by 0.6% during the 2nd quarter. Whitener Capital Management Inc. now owns 3,752 shares of the retailer's stock worth $3,510,000 after purchasing an additional 21 shares during the period. Tema ETFs LLC increased its holdings in Costco Wholesale by 9.9% during the 2nd quarter. Tema ETFs LLC now owns 8,067 shares of the retailer's stock worth $7,546,000 after purchasing an additional 725 shares during the period. Finally, West Branch Capital LLC raised its position in Costco Wholesale by 2.0% during the 2nd quarter. West Branch Capital LLC now owns 4,329 shares of the retailer's stock valued at $4,049,000 after purchasing an additional 83 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: July sales remained very strong. Costco reported July net sales of $23.12 billion, up 10.7% year over year. Comparable sales increased 8.9% globally and 10.3% in the U.S., while digital sales and membership activity remained healthy. The results suggest Costco continues to attract value-conscious consumers and could support earnings expectations. Costco Delivered Another Strong Sales Print in July
• Positive Sentiment: Expansion continues. Planned warehouses, including a possible additional North Texas location and a Kent-area project expected to create about 250 jobs, point to continued investment in Costco’s store footprint. The initiatives are a modest long-term growth positive, although they are unlikely to materially affect near-term results. Costco May Add Another Store in North Texas
• Neutral Sentiment: Earnings expectations are the next major catalyst. Retail-sector coverage describes COST as consolidating ahead of earnings. Investors will focus on comparable sales, membership trends, margins and whether July’s growth can continue through the remainder of the year. Reported short interest of zero shares appears inconsistent with normal market data and provides no meaningful trading signal. Retail Stocks Forecasts
• Negative Sentiment: Valuation is limiting upside. Analysts acknowledge Costco’s resilient demand, membership strength and high-quality business model, but question whether its premium valuation already discounts much of the good news. With a trailing P/E near 47.5, even solid results may not be enough if growth slows or management guidance disappoints. Are Costco’s July Sales Solid Enough to Justify Its Premium Valuation?

Wall Street Analyst Weigh In

Several brokerages have weighed in on COST. Truist Financial upped 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. TD Cowen restated a "buy" rating and set a $1,175.00 price target on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $1,120.00 price objective on shares of Costco Wholesale in a report on Thursday, August 6th. 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. Finally, UBS Group increased their target price on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a report on Wednesday, May 20th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Costco Wholesale currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,059.53.

Costco Wholesale Stock Down 0.9%

Shares of NASDAQ COST opened at $944.32 on Wednesday. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The stock's fifty day simple moving average is $950.45 and its two-hundred day simple moving average is $981.77. The stock has a market capitalization of $418.79 billion, a PE ratio of 47.50, a price-to-earnings-growth ratio of 4.53 and a beta of 0.87. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The company had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the previous year, the firm posted $4.28 earnings per share. As a group, analysts expect that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal year.

Costco Wholesale Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were issued a $1.47 dividend. 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 dividend payout ratio (DPR) is currently 29.58%.

Insider Activity

In related news, Director Kenneth D. Denman sold 885 shares of the business'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 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 position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.10% of the stock is currently owned by insiders.

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.

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.

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