CFO4Life Group LLC Makes New $1.06 Million Investment in Costco Wholesale Corporation $COST

Key Points

• CFO4Life Group initiated a $1.06 million Costco position by purchasing 1,138 shares in the second quarter. Institutional investors collectively own 68.48% of the company.
• Analyst sentiment remains favorable: 22 analysts rate Costco a Buy, 11 recommend Hold, and one rates it Sell, producing a “Moderate Buy” consensus and a $1,059.53 average price target.
• Costco shares opened at $928.48, down 1.2%, while the company maintains a quarterly dividend of $1.47 per share, equivalent to a 0.6% annual yield. The stock’s roughly 47 price-to-earnings ratio highlights its premium valuation.

CFO4Life Group LLC bought a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 1,138 shares of the retailer's stock, valued at approximately $1,064,000.

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

Insider Activity at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The shares were 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 in the company, valued at $4,575,653.55. This represents a 15.62% decrease in their position. The sale 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.

Wall Street Analysts Forecast Growth

COST has been the topic of several recent analyst reports. BTIG Research reissued a "buy" rating and set a $1,125.00 price objective on shares of Costco Wholesale in a research report on Friday, May 29th. Mizuho set a $1,100.00 target price on shares of Costco Wholesale in a report on Monday, June 1st. JPMorgan Chase & Co. dropped their target price on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating on the stock in a research note on Thursday, July 9th. The Goldman Sachs Group increased their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a report on Friday, May 29th. Finally, Truist Financial raised their price target on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a research report on Friday, May 29th. Twenty-two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $1,059.53.

Costco Wholesale Stock Down 1.2%

Costco Wholesale stock opened at $928.48 on Thursday. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The stock has a fifty day moving average of $944.65 and a 200 day moving average of $978.84. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The stock has a market cap of $411.76 billion, a PE ratio of 46.70, a price-to-earnings-growth ratio of 3.89 and a beta of 0.87.

Costco Wholesale Dividend Announcement

The firm also recently declared 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. The ex-dividend date of this dividend 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 presently 29.58%.

Costco Wholesale News Summary

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

• Positive Sentiment: Strong sales momentum supports the investment case. Costco reported August net sales of $23.70 billion, up 9.9% year over year. Fourth-quarter sales rose 11.3% to $93.9 billion, while fiscal-year sales increased 10.2% to $297.3 billion. Total comparable sales grew 8.4% for the year, and digitally enabled sales jumped 20.9%. Costco Wholesale Corporation Reports August Sales Results
• Positive Sentiment: Analyst sentiment remains favorable. Mizuho reiterated a Buy rating and maintained a $1,100 price target, citing confidence in Costco’s membership-driven growth. Recent analyst targets generally remain above the current trading level, with a reported six-month median target of $1,125. Analyst Reiterates Buy on Costco
• Neutral Sentiment: Calendar effects clouded the monthly comparison. Costco said the later timing of Labor Day reduced August total and comparable sales growth by slightly less than 75 basis points. Underlying performance remained positive, but investors may look for confirmation in the next report.
• Negative Sentiment: Costco Next was abruptly discontinued. The company shut down the online Costco Next marketplace without notice. While the service is unlikely to materially affect near-term financial results, the move could disappoint members and remove a customer-engagement perk. Costco has ended this online service without notice
• Negative Sentiment: Regulatory uncertainty increased. The U.S. Department of Justice expanded an investigation into rising beef prices to include Costco and other major retailers. Potential reputational, legal, or margin-related consequences create an overhang, although no wrongdoing has been established. DOJ expands beef price investigation
• Negative Sentiment: Valuation leaves little room for disappointment. Costco trades at roughly 47 times earnings, with a PEG ratio above 4, and shares remain below their 50-day and 200-day moving averages. Insider activity has also consisted of sales rather than purchases in recent months, adding to investor caution.

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.

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