Costco Wholesale Corporation $COST Shares Bought by Zhang Financial LLC

Key Points

• Zhang Financial LLC increased its Costco stake by 133.6% in the second quarter, owning 5,175 shares valued at approximately $4.84 million. Institutional investors collectively hold 68.48% of Costco’s outstanding stock.
• Costco’s latest quarter showed revenue of $70.53 billion, above estimates, while EPS of $4.93 narrowly missed consensus. The company maintains a quarterly dividend of $1.47, equivalent to a 0.6% yield.
• Analysts maintain a broadly positive view, with a “Moderate Buy” consensus and an average price target of $1,059.53, although Costco’s elevated valuation—about 48 times earnings—leaves limited room for disappointing results.

Zhang Financial LLC increased its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 133.6% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 5,175 shares of the retailer's stock after acquiring an additional 2,960 shares during the period. Zhang Financial LLC's holdings in Costco Wholesale were worth $4,842,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in the stock. Eagle Global Advisors LLC raised its holdings in Costco Wholesale by 15.6% during the second quarter. Eagle Global Advisors LLC now owns 1,590 shares of the retailer's stock worth $1,488,000 after purchasing an additional 214 shares in the last quarter. Commons Capital LLC lifted its position in Costco Wholesale by 1.5% in the second quarter. Commons Capital LLC now owns 2,920 shares of the retailer's stock worth $2,731,000 after purchasing an additional 43 shares during the period. Bailard Inc. boosted its stake in Costco Wholesale by 1.4% during the 2nd quarter. Bailard Inc. now owns 40,082 shares of the retailer's stock valued at $37,495,000 after purchasing an additional 560 shares in the last quarter. Almanack Investment Partners LLC. purchased a new stake in shares of Costco Wholesale during the second quarter valued at $256,000. Finally, Kaizen Financial Strategies lifted its holdings in shares of Costco Wholesale by 6.2% during the second quarter. Kaizen Financial Strategies now owns 885 shares of the retailer's stock valued at $819,000 after purchasing an additional 52 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the firm's stock in a transaction 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 sale, the director directly owned 4,779 shares in the company, valued at $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 available at the SEC website. Company insiders own 0.10% of the company's stock.

Costco Wholesale Price Performance

COST opened at $956.99 on Thursday. The stock has a market cap of $424.41 billion, a price-to-earnings ratio of 48.14, a PEG ratio of 4.57 and a beta of 0.87. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The stock has a fifty day moving average price of $948.67 and a 200 day moving average price of $981.23.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The business had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. During the same period in the prior year, the firm earned $4.28 earnings per share. Analysts forecast that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal year.

Costco Wholesale Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were paid a $1.47 dividend. The ex-dividend date was Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is presently 29.58%.

Analysts Set New Price Targets

COST has been the subject of a number of recent analyst reports. The Goldman Sachs Group increased 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. Roth Capital boosted their price objective on Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a report on Friday, May 29th. Bank of America upped 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. BTIG Research reiterated a "buy" rating and issued a $1,125.00 target price on shares of Costco Wholesale in a report on Friday, May 29th. Finally, HC Wainwright reissued a "buy" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Costco Wholesale presently has an average rating of "Moderate Buy" and a consensus price target of $1,059.53.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: New Medicare Advantage offering could expand Costco’s membership value proposition. Costco is partnering with nonprofit SCAN Health Plan to offer co-branded Medicare Advantage and supplemental plans, initially in two states pending regulatory approval. The broader rollout could include pharmacy, vision, hearing and over-the-counter benefits, potentially strengthening member retention and creating an additional revenue stream. Costco’s Next Big Bulk Item: Medicare Advantage
• Positive Sentiment: Growing cash reserves may support another special dividend. Commentary suggests Costco’s accumulating cash could lead to a substantial shareholder payout this fall. While no dividend has been announced, the possibility may provide support for the stock and reinforce Costco’s shareholder-return appeal. Costco's Cash Pile Keeps Building
• Neutral Sentiment: Costco’s merchandising strategy continues to drive member engagement. The company’s practice of rotating or discontinuing popular products can frustrate shoppers, but limited availability and surprise product returns may encourage more frequent warehouse visits and support the treasure-hunt shopping experience. Costco keeps discontinuing popular products
• Negative Sentiment: Valuation leaves limited room for execution missteps. COST trades at roughly 48 times earnings, with a PEG ratio above 4, and analysts have questioned whether its strong multiyear performance is already reflected in the share price. The company’s latest quarterly EPS slightly missed consensus, although revenue exceeded expectations, adding to investor focus on earnings growth. Costco Stock Looks Fully Priced

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.

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.

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