Coastal Bridge Advisors LLC Invests $3.56 Million in Costco Wholesale Corporation $COST

Key Points

• Coastal Bridge Advisors initiated a Costco position worth approximately $3.56 million, purchasing 3,802 shares during the second quarter. Institutional investors and hedge funds collectively own 68.48% of the company.
• Costco shares opened at $915.74, with a market capitalization of about $406.1 billion and a P/E ratio of 46.06. The company paid a quarterly dividend of $1.47 per share, representing a 0.6% yield.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus and an average price target of $1,056.90; however, one director sold 885 shares, and the stock’s elevated valuation could leave it vulnerable if growth slows.

Coastal Bridge Advisors LLC bought a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 3,802 shares of the retailer's stock, valued at approximately $3,557,000.

Other institutional investors have also recently made changes to their positions in the company. World Investment Advisors lifted its position in shares of Costco Wholesale by 8.4% during the fourth quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock worth $15,835,000 after purchasing an additional 1,560 shares in the last quarter. Sarasin & Partners LLP raised its holdings in Costco Wholesale by 6.9% in the second quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer's stock valued at $200,372,000 after acquiring an additional 13,795 shares in the last quarter. Perryman Financial Advisory Inc. AD purchased a new stake in shares of Costco Wholesale during the 4th quarter worth $9,300,000. Hyperion Asset Management Ltd boosted its position in shares of Costco Wholesale by 9.0% during the 2nd quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer's stock worth $64,325,000 after acquiring an additional 5,656 shares in the last quarter. Finally, Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust purchased a new stake in Costco Wholesale in the fourth quarter valued at $5,813,000. 68.48% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, Director Kenneth Denman sold 885 shares of the 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 completion of the transaction, the director owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 0.10% of the company's stock.

Costco Wholesale Price Performance

Shares of NASDAQ COST opened at $915.74 on Monday. 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 Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The company 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. The stock has a fifty day moving average price of $943.58 and a 200 day moving average price of $977.46.

Costco Wholesale Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were paid 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 yield of 0.6%. Costco Wholesale's payout ratio is 29.58%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. BTIG Research reissued a "buy" rating and issued a $1,125.00 price objective on shares of Costco Wholesale in a report on Thursday. JPMorgan Chase & Co. dropped their target price on Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating on the stock in a research report on Thursday, July 9th. Guggenheim reissued a "neutral" rating on shares of Costco Wholesale in a report on Monday, June 1st. TD Cowen reaffirmed a "buy" rating and set a $1,175.00 price target on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Finally, Bank of America increased their price objective on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a "buy" rating in a research note on Friday, May 29th. Twenty-one research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $1,056.90.

Costco Wholesale News Roundup

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

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).

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