Costco Wholesale Corporation $COST Holdings Boosted by IFM Investors Pty Ltd

Key Points

• IFM Investors Pty Ltd increased its stake in Costco by 2.2% in the first quarter, buying 1,842 more shares and bringing its total holding to 85,971 shares worth about $85.7 million.
• Several other institutional investors also added to or initiated positions, and 68.48% of Costco’s stock is now owned by institutions and hedge funds, highlighting continued professional investor interest.
• Analysts remain broadly positive on Costco, with a Moderate Buy consensus and an average price target of $1,061.45, though some recent commentary warns the stock’s valuation is still expensive after its strong run.

IFM Investors Pty Ltd grew its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 2.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 85,971 shares of the retailer's stock after purchasing an additional 1,842 shares during the quarter. Costco Wholesale makes up 0.7% of IFM Investors Pty Ltd's portfolio, making the stock its 18th largest holding. IFM Investors Pty Ltd's holdings in Costco Wholesale were worth $85,664,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also made changes to their positions in the company. FORA Capital LLC bought a new stake in shares of Costco Wholesale during the third quarter valued at approximately $2,781,000. World Investment Advisors increased its position in Costco Wholesale by 8.4% in the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock valued at $15,835,000 after acquiring an additional 1,560 shares during the period. Teacher Retirement System of Texas increased its position in Costco Wholesale by 24.5% in the 4th quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer's stock valued at $121,098,000 after acquiring an additional 27,625 shares during the period. Curtis Advisory Group LLC raised its stake in Costco Wholesale by 56.7% during the 4th quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer's stock valued at $3,911,000 after acquiring an additional 1,641 shares in the last quarter. Finally, Perryman Financial Advisory Inc. AD bought a new stake in Costco Wholesale during the 4th quarter valued at $9,300,000. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Analysts see Costco’s large cash position, low debt, and steady membership-fee stream as advantages that could help it keep investing through retail headwinds and support future growth. Can Costco Outgrow Retail Headwinds on Balance Sheet Strength?
• Positive Sentiment: Commentary also highlighted stronger executive membership penetration, which can boost higher-margin fee income and improve Costco’s sales mix, with additional growth potential from China expansion. Costco's Executive Penetration Could Unlock More Earnings
• Positive Sentiment: Erste Group Bank raised its FY2027 earnings estimate for Costco, signaling continued confidence in the company’s earnings power beyond the current fiscal year. Costco Wholesale Corporation NASDAQ: COST
• Positive Sentiment: Articles focused on Costco’s growing footprint, including new Texas warehouse openings, reinforcing the company’s steady unit expansion and brand strength with consumers. Costco cashes in on 2 new Texas warehouses opening this summer. Here's where
• Neutral Sentiment: Several recent consumer-focused articles and opinion pieces about Costco products and shopping habits are not likely to move the stock much on their own. 7 Costco finds that help you save on warm-weather essentials
• Neutral Sentiment: One recent bullish article argued Costco can generate long-term passive income and capital appreciation, but this is more a thesis piece than a new catalyst. Want $3,000 in Annual Passive Income? Invest $146,000 in Costco in July and Wait 10 Years.
• Negative Sentiment: Multiple recent write-ups warn that Costco’s valuation is expensive, with some analysts saying the stock’s strong multi-year run has left limited upside unless growth accelerates further. Costco (COST) Stock Looks Strong On Returns But Expensive On Earnings
• Negative Sentiment: Bearish commentary also suggested Costco may have more downside if investors keep focusing on slowing growth versus its premium earnings multiple. Costco Stock: More Pain To Come

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the company. Bank of America increased their price target on 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. Sanford C. Bernstein increased their target price on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an "outperform" rating in a research report on Friday, May 29th. Mizuho set a $1,100.00 target price on shares of Costco Wholesale in a research note on Monday, June 1st. Truist Financial boosted their price target on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research report on Friday, May 29th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and issued a $1,050.00 price target on shares of Costco Wholesale in a research note on Thursday, March 5th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $1,061.45.

Costco Wholesale Trading Down 1.2%

Shares of NASDAQ COST opened at $924.67 on Thursday. The company has a quick ratio of 0.61, a current ratio of 1.07 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 $410.07 billion, a price-to-earnings ratio of 46.51, a P/E/G ratio of 4.53 and a beta of 0.88. The business has a fifty day simple moving average of $992.50 and a 200-day simple moving average of $972.25.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The company had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $70.12 billion. During the same period in the prior year, the business posted $4.28 EPS. Sell-side analysts predict that Costco Wholesale Corporation will post 20.38 EPS for the current year.

Costco Wholesale Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were given a $1.47 dividend. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date was Friday, May 1st. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's payout ratio is currently 29.58%.

Insider Buying and Selling

In related news, Director Kenneth D. Denman sold 885 shares of the firm's 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 completion of 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 transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.10% of the company's stock.

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.

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