Costco Wholesale Corporation $COST Shares Purchased by Sarasin & Partners LLP

Key Points

• Sarasin & Partners increased its Costco stake by 6.9% in the second quarter, adding 13,795 shares to own 214,194 shares worth approximately $200.4 million. Institutional investors collectively own 68.48% of Costco’s stock.
• Costco reported quarterly revenue of $70.53 billion, exceeding analyst estimates, although earnings of $4.93 per share narrowly missed expectations. Analysts project $20.42 in full-year EPS.
• Costco declared a quarterly dividend of $1.47 per share, equivalent to an annualized $5.88 payout and a 0.6% yield. Wall Street maintains a “Moderate Buy” consensus, with an average price target of $1,059.53 versus the reported share price of $949.15.

Sarasin & Partners LLP boosted its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 6.9% in the second quarter, according to the company in its most recent filing with the SEC. The firm owned 214,194 shares of the retailer's stock after acquiring an additional 13,795 shares during the quarter. Costco Wholesale comprises about 2.3% of Sarasin & Partners LLP's portfolio, making the stock its 14th largest position. Sarasin & Partners LLP's holdings in Costco Wholesale were worth $200,372,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in Costco Wholesale in the 4th quarter worth approximately $27,000. Mcguire Capital Advisors Inc. purchased a new position in Costco Wholesale during the 4th quarter worth approximately $28,000. Lifetime Wealth Management P.C. acquired a new stake in Costco Wholesale during the 4th quarter valued at approximately $28,000. Entrust Financial LLC acquired a new stake in Costco Wholesale during the 4th quarter valued at approximately $31,000. Finally, Joseph Group Capital Management purchased a new stake in shares of Costco Wholesale in the 4th quarter valued at $33,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale Price Performance

Shares of NASDAQ COST opened at $949.15 on Friday. 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 stock has a market capitalization of $420.93 billion, a price-to-earnings ratio of 47.74, a PEG ratio of 4.55 and a beta of 0.87. The firm's 50 day simple moving average is $950.68 and its 200-day simple moving average is $982.24. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50.

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

Costco Wholesale Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Friday, July 24th will be issued a $1.47 dividend. The ex-dividend date of this dividend is Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's payout ratio is presently 29.58%.

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the company's stock in a transaction dated 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 in the company, 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 legal filing with the SEC, which is accessible through this link. Insiders own 0.10% of the company's stock.

More Costco Wholesale News

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

• Positive Sentiment: Strong July sales support the investment case. Costco reported July net sales of $23.12 billion, up 10.7% year over year, while sales for the first 48 weeks of the fiscal year rose 10.1% to $273.55 billion. The results indicate continued customer traffic and spending momentum and are likely the main reason the stock has increased. Costco Wholesale Corporation Reports July Sales Results
• Positive Sentiment: Comparable-store sales also improved in July. MarketWatch reported that Costco’s same-store sales increased, suggesting that growth was not driven solely by new warehouse openings. Broad-based comparable sales are generally viewed favorably because they indicate stronger underlying demand and member engagement. Costco Same-Store Sales Rise in July
• Positive Sentiment: Costco’s brand strategy continues to attract attention. Lord & Taylor is reportedly pursuing a Costco-like model, including greater emphasis on private-label merchandise. The comparison highlights the strength of Costco’s Kirkland Signature brand and the competitive advantages of its membership and private-label ecosystem. Formerly bankrupt department store bets on Costco strategy
• Neutral Sentiment: Analysts remain focused on valuation. A TipRanks review noted that COST has risen about 10% year to date while inflation remains a concern. Strong sales support earnings expectations, but the stock’s high earnings multiple leaves less room for disappointing results or slowing growth. Is Costco Stock Still a Good Buy After Its July Sales Report?
• Neutral Sentiment: Articles about student benefits, new groceries, and higher-income consumer spending provide lifestyle or industry context but do not materially change Costco’s earnings outlook. Costco Student Discount
• Negative Sentiment: A proposed tax-sharing agreement connected to a potential Costco and gas-station development has drawn opposition from local residents. The issue appears localized and is unlikely to affect Costco’s near-term financial results, but it could create permitting or reputational friction. Residents Oppose Tax-Sharing Agreement

Wall Street Analyst Weigh In

COST has been the topic of a number of research reports. Sanford C. Bernstein increased their price objective on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a research note on Friday, May 29th. UBS Group upped their price target on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a report on Wednesday, May 20th. BTIG Research reaffirmed a "buy" rating and set a $1,125.00 price target on shares of Costco Wholesale in a research report on Friday, May 29th. Truist Financial increased their price target on 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, Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Costco Wholesale currently has a consensus rating of "Moderate Buy" and an average price target of $1,059.53.

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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