Costco Wholesale Corporation $COST Shares Sold by Tokio Marine Asset Management Co. Ltd.

Key Points

• Tokio Marine Asset Management reduced its Costco position by 6.9% in the second quarter, selling 2,615 shares and retaining 35,164 shares worth approximately $32.9 million. Institutional investors and hedge funds 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 expectations. The company pays a quarterly dividend of $1.47, equal to a 0.6% annualized yield.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $1,059.53, although Costco’s elevated valuation—about 48 times earnings—remains a key risk for investors.

Tokio Marine Asset Management Co. Ltd. trimmed its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 6.9% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 35,164 shares of the retailer's stock after selling 2,615 shares during the period. Costco Wholesale comprises about 1.0% of Tokio Marine Asset Management Co. Ltd.'s investment portfolio, making the stock its 16th largest position. Tokio Marine Asset Management Co. Ltd.'s holdings in Costco Wholesale were worth $32,895,000 at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in shares of Costco Wholesale by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer's stock valued at $37,615,889,000 after buying an additional 165,349 shares during the period. Geode Capital Management LLC grew its stake in Costco Wholesale by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer's stock worth $8,919,573,000 after acquiring an additional 26,690 shares during the period. Morgan Stanley grew its stake in Costco Wholesale by 1.1% in the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer's stock worth $8,212,433,000 after acquiring an additional 107,775 shares during the period. Bank of America Corp DE grew its stake in Costco Wholesale by 11.5% in the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock worth $7,488,203,000 after acquiring an additional 773,651 shares during the period. Finally, Diamant Asset Management Inc. raised its holdings in Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after acquiring an additional 6,720,130 shares during the last quarter. 68.48% of the stock is owned by institutional investors and hedge funds.

Costco Wholesale Stock Performance

Shares of NASDAQ:COST opened at $961.35 on Wednesday. The firm has a market capitalization of $426.34 billion, a PE ratio of 48.36, a P/E/G ratio of 4.57 and a beta of 0.87. 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 business has a 50-day moving average of $949.20 and a two-hundred day moving average of $981.20. 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 released its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share 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 period in the prior year, the firm earned $4.28 earnings per share. As a group, research analysts forecast that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Dividend Announcement

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

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on COST. Roth Capital increased their price target on Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research note on Friday, May 29th. The Goldman Sachs Group upped their target price on Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research note on Friday, May 29th. Royal Bank Of Canada started coverage on Costco Wholesale in a research note on Monday, July 13th. They issued a "sector perform" rating and a $1,000.00 target price for the company. Bank of America increased their target price on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Finally, Oppenheimer raised their price target on Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 19th. 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 data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $1,059.53.

Costco Wholesale News Summary

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

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director directly owned 4,779 shares of the company's stock, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.10% of the stock is currently owned by company insiders.

Costco Wholesale Company 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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