Ausdal Financial Partners Inc. Invests $4.94 Million in Costco Wholesale Corporation $COST

Key Points

• Ausdal Financial Partners initiated a Costco position by purchasing 5,285 shares valued at approximately $4.94 million during the second quarter.
• Institutional investors own 68.48% of Costco, with major firms including Geode Capital, Morgan Stanley, Bank of America, Diamant Asset Management, and Corient Private Wealth recently increasing their stakes.
• Costco has a “Moderate Buy” consensus rating and a $1,056.90 average price target, but its elevated valuation—around 46 times earnings—continues to raise concerns about limited upside and sensitivity to slower growth.

Ausdal Financial Partners Inc. bought a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the 2nd quarter, according to its most recent 13F filing with the SEC. The fund bought 5,285 shares of the retailer's stock, valued at approximately $4,944,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Geode Capital Management LLC increased its stake in shares of Costco Wholesale by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer's stock worth $8,919,573,000 after purchasing an additional 26,690 shares in the last quarter. Morgan Stanley lifted its stake in Costco Wholesale by 1.1% in the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer's stock valued at $8,212,433,000 after buying an additional 107,775 shares in the last quarter. Bank of America Corp DE boosted its holdings in Costco Wholesale by 11.5% in the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock worth $7,488,203,000 after buying an additional 773,651 shares during the last quarter. Diamant Asset Management Inc. boosted its stake in shares of Costco Wholesale by 99,278.0% in the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock worth $672,690,000 after acquiring an additional 6,720,130 shares during the last quarter. Finally, Corient Private Wealth LLC boosted its stake in shares of Costco Wholesale by 838.9% in the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock worth $5,282,182,000 after acquiring an additional 5,472,968 shares during the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Strong August sales: Net sales increased 9.9% year over year, with comparable sales rising across regions and digitally enabled sales advancing 17.9%. The figures point to resilient member demand and continued e-commerce momentum. Costco's August Sales Rise 9.9% as Digital Growth Stays Strong
• Positive Sentiment: Analyst support remains broad: BTIG reiterated a Buy rating with a $1,125 target, while Bank of America maintained its Buy rating and $1,200 target. Analysts cited resilient core performance, market-share gains, and higher earnings estimates. BTIG Reaffirms Buy on Costco
• Positive Sentiment: Long-term shareholder appeal: Commentary highlighted Costco’s consistent dividend growth since 2004, membership model, customer loyalty, and potential for continued earnings expansion.
• Neutral Sentiment: Store expansion: Costco is reportedly considering a new location in Thompson’s Station, Tennessee, supporting its long-term warehouse growth strategy, although the potential site has no immediate earnings impact.
• Neutral Sentiment: Mixed analyst valuation signals: DA Davidson reaffirmed a Neutral rating with a $1,000 target, while Bernstein retained a Buy rating but lowered its target to $1,144, indicating less room for upside despite confidence in the business.
• Negative Sentiment: Valuation concerns: Jim Cramer and other commentators argued that COST trades at roughly 43–49 times earnings, leaving the stock vulnerable if growth slows or results merely meet expectations. Cramer Says Costco at 49 Times Earnings Is the Mistake Loyal Shoppers Keep Making
• Negative Sentiment: Regulatory risk: The Department of Justice expanded a beef-pricing antitrust inquiry to Costco, seeking information on prices, costs, margins, purchasing, and supply-chain practices. Potential compliance costs or scrutiny could pressure sentiment. US DOJ Widens Beef Price Inquiry
• Negative Sentiment: Costco Next shutdown: The company’s online marketplace reportedly went offline without notice, raising questions about its digital strategy, although the platform is not viewed as central to Costco’s core business. Costco Next Online Marketplace Shut Down

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on COST. Roth Capital increased their target price on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a research report on Friday, May 29th. BTIG Research reissued a "buy" rating and issued a $1,125.00 price objective on shares of Costco Wholesale in a report on Thursday. Citigroup began coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 price objective for the company. Bank of America lifted their target price on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a research note on Friday, May 29th. Finally, Sanford C. Bernstein set a $1,144.00 price objective on Costco Wholesale in a research report on Friday. Twenty-one 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 data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,056.90.

Costco Wholesale Trading Down 1.0%

NASDAQ:COST opened at $915.74 on Friday. The stock has a 50-day simple moving average of $943.58 and a 200-day simple moving average of $977.75. The stock has a market cap of $406.11 billion, a P/E ratio of 46.06, a P/E/G ratio of 3.80 and a beta of 0.86. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07.

Costco Wholesale Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were given a dividend of $1.47 per share. 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 payout ratio is currently 29.58%.

Insider Activity at Costco Wholesale

In related news, Director Kenneth Denman sold 885 shares of Costco Wholesale stock in a transaction 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 sale, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.10% of the stock is owned by company insiders.

About Costco Wholesale

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