Costco Wholesale Corporation $COST Shares Sold by BOCHK Asset Management Ltd

Key Points

• BOCHK Asset Management cut its Costco position by 75.5% in the second quarter, selling 8,000 shares and retaining 2,600 shares valued at approximately $2.43 million. Institutional investors and hedge funds collectively own 68.48% of Costco’s stock.
• Costco’s latest quarterly results showed revenue of $70.53 billion, above estimates, but EPS of $4.93 narrowly missed expectations. The shares trade at a high price-to-earnings ratio of 46.96, increasing sensitivity to execution disappointments.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and average price target of $1,059.53. Costco also pays a quarterly dividend of $1.47 per share, representing a 0.6% yield and a 29.58% payout ratio.

BOCHK Asset Management Ltd lowered its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 75.5% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,600 shares of the retailer's stock after selling 8,000 shares during the period. BOCHK Asset Management Ltd's holdings in Costco Wholesale were worth $2,432,000 as of its most recent filing with the Securities & Exchange Commission.

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

Key Costco Wholesale News

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

• Positive Sentiment: Medicare expansion creates a new growth opportunity. Costco is partnering with nonprofit insurer SCAN Group to offer limited Costco-branded Medicare Advantage and supplemental plans, initially in select states. The initiative targets Costco’s sizable senior-member base and gives the retailer exposure to the large Medicare market, although the financial contribution is likely to develop gradually. Costco Enters The Medicare Insurance Market
• Positive Sentiment: Costco increased its dividend by 13.1%. The raise signals confidence in cash generation and strengthens the shareholder-return case, though the regular dividend yield remains relatively modest because of COST’s high share price. Costco Just Upped Its Dividend by 13.1%
• Positive Sentiment: Additional growth engines are emerging. Analysts point to Costco’s membership model, Kirkland Signature products, retail media, artificial-intelligence-powered search and pharmacy operations as areas that could support growth beyond warehouse sales. Costco Is Quietly Building Its Next Big Growth Engine
• Neutral Sentiment: Product news is likely to have limited stock impact. Costco brought back a popular discontinued item, which may support member engagement but is not material to companywide earnings. Costco Brought Back a Popular Favorite
• Negative Sentiment: Valuation and retail concerns are weighing on the shares. COST trades at a high earnings multiple, leaving less room for execution disappointments. Its latest quarterly EPS narrowly missed estimates despite revenue exceeding expectations, while the stock declined more than the broader market in the latest session. Why Costco Fell More Than the Broader Market

Costco Wholesale Price Performance

COST opened at $933.51 on Friday. The firm has a market cap of $413.99 billion, a price-to-earnings ratio of 46.96, a price-to-earnings-growth ratio of 4.55 and a beta of 0.87. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The company's 50-day moving average price is $947.83 and its 200 day moving average price is $981.19.

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

Costco Wholesale Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were given a dividend of $1.47 per share. 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 payout ratio is currently 29.58%.

Analysts Set New Price Targets

A number of research firms recently commented on COST. Citigroup initiated coverage on Costco Wholesale in a research note on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 price objective on the stock. Guggenheim reaffirmed a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. HC Wainwright reaffirmed a "buy" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Truist Financial increased their price objective on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a research report on Friday, May 29th. Finally, BTIG Research restated a "buy" rating and set a $1,125.00 target price on shares of Costco Wholesale in a research note on Friday, May 29th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,059.53.

Insider Transactions at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of the 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 completion of the transaction, the director owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Company insiders own 0.10% of the company's stock.

About Costco Wholesale

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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