Costco Wholesale Corporation $COST Shares Sold by Carnegie Investment Counsel

Key Points

• Carnegie Investment Counsel cut its Costco stake by 6.2% in the second quarter, selling 2,229 shares and retaining 33,613 shares valued at approximately $31.4 million. Institutional investors collectively own 68.48% of Costco.
• Costco reported quarterly revenue of $70.53 billion, exceeding estimates, but earnings per share of $4.93 narrowly missed the $4.94 consensus. Shares opened at $961.35, while the stock carries a high valuation with a P/E ratio of 48.36.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $1,059.53, though elevated valuation and the recent EPS miss remain concerns. Costco also pays a quarterly dividend of $1.47 per share, yielding about 0.6%.

Carnegie Investment Counsel reduced its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 6.2% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 33,613 shares of the retailer's stock after selling 2,229 shares during the period. Carnegie Investment Counsel's holdings in Costco Wholesale were worth $31,444,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also made changes to their positions in COST. Diamant Asset Management Inc. boosted its stake in Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after purchasing an additional 6,720,130 shares in the last quarter. Norges Bank bought a new stake in shares of Costco Wholesale in the 4th quarter worth $5,195,415,000. Corient Private Wealth LLC raised its stake in shares of Costco Wholesale by 838.9% in the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock worth $5,282,182,000 after buying an additional 5,472,968 shares in the last quarter. Ascentis Wealth Management LLC lifted its holdings in shares of Costco Wholesale by 103,637.0% in the second quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer's stock valued at $2,549,616,000 after buying an additional 2,497,652 shares during the period. Finally, Cardano Risk Management B.V. lifted its holdings in shares of Costco Wholesale by 907.1% in the fourth quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer's stock valued at $1,539,346,000 after buying an additional 1,607,833 shares during the period. Institutional investors and hedge funds own 68.48% of the company's stock.

Costco Wholesale Trading Up 0.8%

Shares of NASDAQ COST opened at $961.35 on Wednesday. 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 $426.34 billion, a price-to-earnings ratio of 48.36, a P/E/G ratio of 4.57 and a beta of 0.87. 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 business has a fifty day simple moving average of $949.20 and a 200-day simple moving average of $981.20.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released 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 net margin of 3.01% and a return on equity of 28.04%. The company had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same quarter last year, the business earned $4.28 EPS. Sell-side analysts predict that Costco Wholesale Corporation will post 20.42 EPS for the current 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 issued a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio is currently 29.58%.

Insider Buying and Selling at Costco Wholesale

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 0.10% of the company's stock.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco plans to offer co-branded Medicare Advantage plans with nonprofit insurer SCAN Group, initially in two states pending regulatory approval. The offerings may eventually include pharmacy, vision, hearing and over-the-counter benefits, potentially increasing member engagement and monetization. Costco launching Medicare Advantage plans with SCAN Group
• Positive Sentiment: Analysts and market commentary continue to highlight Costco’s Executive membership growth, digital sales conversion and rising fee income as evidence that the company is extracting more value from its membership base. Costco also retains broadly favorable analyst coverage, with a consensus view around “Moderate Buy.” Can Costco Stock Reach New Highs in Member Monetization?
• Neutral Sentiment: Costco brought back a popular Kirkland product discontinued two years ago. The move may support customer goodwill and traffic, but it is unlikely to materially affect earnings or valuation. Costco discontinued this Kirkland favorite 2 years ago. Now it's back
• Negative Sentiment: Despite a 121% five-year total return, Costco’s valuation remains a concern. Its elevated earnings multiple leaves less room for disappointment, particularly after the latest quarterly EPS slightly missed estimates, even though revenue exceeded expectations. Costco Stock Looks Fully Priced Despite 121% Returns And Earnings Questions

Analysts Set New Price Targets

A number of research analysts recently issued reports on COST shares. Sanford C. Bernstein lifted their target price on Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an "outperform" rating in a report on Friday, May 29th. Roth Capital raised their price objective on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a research report on Friday, May 29th. UBS Group lifted their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a research note on Wednesday, May 20th. Truist Financial boosted their target price on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a report on Friday, May 29th. Finally, Citigroup began coverage on shares of Costco Wholesale in a research note on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 target price for the company. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus 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.

Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST - Free Report).

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