California State Teachers Retirement System Lowers Stock Holdings in Costco Wholesale Corporation $COST

Key Points

• CalSTRS reduced its Costco position by 2.2%, selling 15,252 shares and retaining 687,142 shares worth approximately $684.7 million. Costco remains the fund’s 18th-largest holding, while institutional investors collectively own 68.48% of the stock.
• Analysts remain broadly bullish, with 22 Buy, 12 Hold and one Sell rating. Costco has a consensus “Moderate Buy” rating and an average price target of $1,059.07.
• Costco reported quarterly revenue of $70.53 billion, exceeding estimates, though earnings per share narrowly missed expectations. Shares trade at a high 48.62 price-to-earnings ratio, and the company declared a quarterly dividend of $1.47 per share, yielding approximately 0.6%.

California State Teachers Retirement System decreased its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 2.2% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 687,142 shares of the retailer's stock after selling 15,252 shares during the quarter. Costco Wholesale makes up approximately 0.7% of California State Teachers Retirement System's holdings, making the stock its 18th largest holding. California State Teachers Retirement System owned 0.15% of Costco Wholesale worth $684,689,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently made changes to their positions in the company. Core Wealth Advisors Inc. grew its holdings in shares of Costco Wholesale by 8.7% during the 1st quarter. Core Wealth Advisors Inc. now owns 510 shares of the retailer's stock worth $508,000 after purchasing an additional 41 shares during the period. Richwood Investment Advisors LLC grew its holdings in Costco Wholesale by 2.5% during the 1st quarter. Richwood Investment Advisors LLC now owns 1,825 shares of the retailer's stock valued at $1,818,000 after purchasing an additional 45 shares in the last quarter. Eley Financial Management Inc grew its stake in shares of Costco Wholesale by 2.4% during the first quarter. Eley Financial Management Inc now owns 5,212 shares of the retailer's stock valued at $4,974,000 after acquiring an additional 121 shares in the last quarter. Empowered Funds LLC grew its stake in Costco Wholesale by 71.7% during the 1st quarter. Empowered Funds LLC now owns 67,791 shares of the retailer's stock valued at $67,549,000 after purchasing an additional 28,301 shares in the last quarter. Finally, Evelyn Partners Investment Management LLP grew its position in shares of Costco Wholesale by 3.2% during the first quarter. Evelyn Partners Investment Management LLP now owns 11,277 shares of the retailer's stock worth $11,237,000 after buying an additional 353 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on COST shares. TD Cowen reiterated a "buy" rating and issued a $1,175.00 price target on shares of Costco Wholesale in a research note on Wednesday, June 3rd. The Goldman Sachs Group lifted their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Royal Bank Of Canada started coverage on Costco Wholesale in a research note on Monday, July 13th. They set a "sector perform" rating and a $1,000.00 price objective for the company. Finally, Bank of America increased their target price on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Twenty-two research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $1,059.07.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco has begun operating its Port St. Lucie, Florida distribution center independently from the power grid using on-site solar generation and battery storage. The project could reduce energy costs, improve resilience and support Costco’s net-zero and sustainability goals. Breaking Free from the Grid, Costco Teams with Trinity Energy to Pioneer True Commercial Energy Independence
• Positive Sentiment: Analysts and market commentators continue to highlight Costco’s long-term growth profile. Expected earnings growth, recurring membership revenue and strong customer loyalty support the bullish investment case, although the stock already trades at a high earnings multiple. Why Costco Is a Top Growth Stock for the Long-Term
• Positive Sentiment: Kirkland Signature is described as an increasingly important growth engine. Its lower prices, broad product expansion and reported savings of roughly 15% to 20% can strengthen customer loyalty, differentiate Costco and support merchandise margins. Costco's Kirkland Brand Is Becoming a Powerful Growth Engine
• Neutral Sentiment: Costco’s use of free water samples illustrates its strategy of encouraging shoppers to discover and purchase new products. Retail experts viewed the tactic as a creative engagement and merchandising initiative, but the article does not indicate a material near-term financial impact. Costco Offered Shoppers Free Samples of Water
• Neutral Sentiment: Plans for a proposed Costco store in South Reno remain uncertain, potentially delaying a future contribution from that market. The development issue appears localized and is unlikely to materially affect Costco’s overall valuation. What Happened to the Proposed New South Reno Costco Store?
• Negative Sentiment: Eligible Washington Costco shoppers may receive payments from a reported $14 million settlement. While the settlement appears limited relative to Costco’s size, it creates a legal expense and could add reputational risk. Washington Costco Shoppers Eligible for Cash in $14 Million Settlement
• Negative Sentiment: Promotional gas discounts from 7-Eleven are increasing competition for Costco’s fuel business, potentially weakening one of the membership club’s customer-traffic advantages as households remain pressured by high gasoline prices. 7-Eleven Has a Gas Discount That Challenges Costco

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $966.58 on Wednesday. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The stock has a market cap of $428.66 billion, a price-to-earnings ratio of 48.62, a PEG ratio of 4.60 and a beta of 0.88. The stock's 50 day moving average price is $960.85 and its 200 day moving average price is $981.69. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50.

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

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Friday, July 24th will be given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is 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 Costco Wholesale stock in a transaction dated Tuesday, June 23rd. The stock was 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 position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.10% of the stock is owned by company 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.