Costco Wholesale Corporation $COST Shares Bought by Praxis Investment Management Inc.

Key Points

• Praxis Investment Management increased its Costco stake by 28.7% in Q1, buying 1,626 additional shares and lifting its holdings to 7,299 shares valued at about $7.27 million.
• Costco continues to attract broad institutional interest, with 68.48% of shares now held by institutional investors and hedge funds, even as insider director Kenneth D. Denman sold 885 shares in late June.
• The company reported mixed quarterly results: earnings per share came in slightly below estimates, while revenue topped expectations. Costco also raised its quarterly dividend to $1.47 per share, and analysts remain broadly positive with a consensus rating of Moderate Buy.

Praxis Investment Management Inc. raised its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 28.7% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 7,299 shares of the retailer's stock after buying an additional 1,626 shares during the quarter. Praxis Investment Management Inc.'s holdings in Costco Wholesale were worth $7,273,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in Costco Wholesale during the fourth quarter worth about $27,000. Mcguire Capital Advisors Inc. acquired a new stake in Costco Wholesale in the 4th quarter valued at about $28,000. Lifetime Wealth Management P.C. purchased a new position in Costco Wholesale in the 4th quarter worth approximately $28,000. Entrust Financial LLC purchased a new position in Costco Wholesale in the 4th quarter worth approximately $31,000. Finally, Joseph Group Capital Management acquired a new position in shares of Costco Wholesale during the 4th quarter worth approximately $33,000. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Costco Wholesale News Summary

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

• Positive Sentiment: Costco is expanding its footprint with several new warehouse openings and planned locations across the U.S., which could support membership growth and future revenue. Costco to Open New Stores Across the U.S.: Full List of Locations
• Positive Sentiment: New store approvals in California and other regions suggest Costco’s growth runway remains intact, even if some local residents are pushing back. New Costco approved in California, but some locals say location is 'unnecessary'
• Positive Sentiment: Costco began alcohol sales at a Pennsylvania store, another example of incremental in-store offerings that can increase traffic and basket size. Costco Wholesale begins alcohol sales at Pennsylvania store
• Neutral Sentiment: Articles on a possible special dividend and a potential stock split are mostly speculative; they may interest shareholders, but they do not appear to be the main near-term driver of the stock. Will Costco Pay a Special Dividend in 2026? Here's What History Says.
• Neutral Sentiment: Analysts and commentators continue to debate Costco’s valuation, noting strong long-term returns but also that the stock looks expensive on earnings, which can cap upside. Costco (COST) Stock Looks Strong On Returns But Expensive On Earnings
• Negative Sentiment: One recent analysis said Costco’s growth engine may be losing momentum as lower fuel prices could reduce a key traffic driver and create execution risk for the stock. Costco’s secret growth engine may be running out of gas
• Negative Sentiment: Another report highlighted that Costco has underperformed the broader market over the past three months, reflecting investor concern about its premium valuation. Why Costco Stock (COST) Underperformed the S&P 500 Over the Past 3 Months

Insider Activity at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of the company's stock in a transaction on 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 $4,575,653.55. This represents a 15.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.10% of the stock is currently owned by company insiders.

Costco Wholesale Price Performance

Shares of NASDAQ COST opened at $951.67 on Friday. The company has a market capitalization of $422.05 billion, a P/E ratio of 47.87, a P/E/G ratio of 4.61 and a beta of 0.88. 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 company has a 50 day simple moving average of $990.38 and a 200-day simple moving average of $972.57. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50.

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

Costco Wholesale Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were given a $1.47 dividend. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Friday, May 1st. Costco Wholesale's dividend payout ratio (DPR) is presently 29.58%.

Analyst Ratings Changes

A number of research firms have recently issued reports on COST. Telsey Advisory Group upped their price target on Costco Wholesale from $1,125.00 to $1,135.00 and gave the company an "outperform" rating in a research report on Thursday, April 9th. The Goldman Sachs Group lifted their price objective on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Deutsche Bank Aktiengesellschaft boosted their price objective on Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Guggenheim reaffirmed a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Finally, Wells Fargo & Company lifted their price target on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Thursday, April 9th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,061.45.

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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