Connor Clark & Lunn Investment Management Ltd. Invests $169.56 Million in Costco Wholesale Corporation $COST

Key Points

• Connor Clark & Lunn Investment Management acquired 181,256 Costco shares during the second quarter, valued at approximately $169.56 million. Institutional investors collectively own 68.48% of the company.
• Costco reported strong momentum, with August net sales rising 9.9% year over year to $23.70 billion and digitally enabled sales increasing 17.9%. Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $1,059.53.
• Potential concerns include a Justice Department inquiry into beef pricing and the shutdown of the Costco Next marketplace. The stock opened at $925.41, trades at a high forward valuation, and recently paid a quarterly dividend of $1.47 per share.

Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 181,256 shares of the retailer's stock, valued at approximately $169,560,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Geode Capital Management LLC raised its position in shares of Costco Wholesale by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer's stock worth $8,919,573,000 after buying an additional 26,690 shares in the last quarter. Morgan Stanley boosted its holdings in shares of Costco Wholesale by 1.1% in 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 boosted its holdings in shares of Costco Wholesale by 11.5% in 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. increased its stake in shares of Costco Wholesale by 99,278.0% during the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after acquiring an additional 6,720,130 shares during the period. Finally, Corient Private Wealth LLC increased its stake in shares of Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock valued at $5,282,182,000 after acquiring an additional 5,472,968 shares during the period. 68.48% of the stock is currently owned by institutional investors.

Costco Wholesale News Roundup

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

• Positive Sentiment: Strong August and fiscal-year sales: 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 August and the fiscal year, and digitally enabled sales rose 17.9% for the month and 20.9% for the year. Costco August Sales Results
• Positive Sentiment: Analysts remain constructive: BTIG reaffirmed its Buy rating with a $1,125 price target, while Bank of America maintained a Buy rating and a $1,200 target. These targets imply substantial upside and suggest analysts believe Costco’s membership model and sales momentum support its premium valuation. BTIG Costco Rating
• Neutral Sentiment: Mixed analyst signal: DA Davidson reaffirmed a Neutral rating but lifted its price target to $1,000, indicating limited conviction even while acknowledging potential appreciation.
• Neutral Sentiment: Long-term optimism: Commentary argues Costco could eventually surpass Home Depot and Lowe’s in market value if it sustains membership growth, warehouse expansion and consistent execution. This is a long-range thesis rather than a near-term catalyst. Costco Long-Term Valuation Forecast
• Negative Sentiment: DOJ beef-pricing investigation: The Justice Department is requesting records from Costco and other major retailers regarding beef prices, costs, margins and purchasing strategies. The inquiry creates potential legal, regulatory and operational risks, although no wrongdoing has been established. DOJ Beef Price Inquiry
• Negative Sentiment: Costco Next shutdown: The abrupt ending of the online Costco Next marketplace disappointed some members and raises questions about the company’s digital strategy, though the direct financial effect appears limited. Costco Next Shutdown

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the business's stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the sale, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.10% of the company's stock.

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $925.41 on Friday. The company has a market capitalization of $410.40 billion, a PE ratio of 46.55, a price-to-earnings-growth ratio of 3.85 and a beta of 0.86. 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 fifty day moving average of $944.31 and a 200-day moving average of $978.18. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50.

Costco Wholesale Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were issued 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 of this dividend was Friday, July 24th. Costco Wholesale's dividend payout ratio is currently 29.58%.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on COST shares. HC Wainwright restated a "buy" rating on shares of Costco Wholesale in a research report on Monday, June 1st. The Goldman Sachs Group lifted their price target on Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Truist Financial boosted their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research note on Friday, May 29th. Sanford C. Bernstein upped their price objective on Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an "outperform" rating in a report on Friday, May 29th. Finally, Oppenheimer raised their target price on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a research note on Tuesday, May 19th. Twenty-one analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $1,059.53.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source