Costco Wholesale Corporation $COST Stock Position Lowered by KCM Investment Advisors LLC

Key Points

• KCM Investment Advisors reduced its Costco position by 2.2%, selling 2,553 shares and retaining 112,385 shares valued at approximately $112 million. Institutional investors collectively own 68.48% of the company.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $1,059.07, although Costco trades at a demanding forward valuation near 48 times earnings.
• Costco’s latest quarter showed revenue above expectations and year-over-year EPS growth, while the company announced a quarterly dividend of $1.47 per share. Growth opportunities include Kirkland Signature and ancillary services, but fuel competition and legal matters remain risks.

KCM Investment Advisors LLC decreased its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 2.2% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 112,385 shares of the retailer's stock after selling 2,553 shares during the quarter. Costco Wholesale comprises approximately 3.7% of KCM Investment Advisors LLC's holdings, making the stock its 3rd biggest holding. KCM Investment Advisors LLC's holdings in Costco Wholesale were worth $111,984,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. World Investment Advisors lifted its holdings in Costco Wholesale by 8.4% in the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock worth $15,835,000 after buying an additional 1,560 shares in the last quarter. Teacher Retirement System of Texas boosted its position in Costco Wholesale by 24.5% in the 4th quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer's stock valued at $121,098,000 after buying an additional 27,625 shares during the last quarter. Curtis Advisory Group LLC grew its stake in shares of Costco Wholesale by 56.7% during the fourth quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer's stock valued at $3,911,000 after acquiring an additional 1,641 shares in the last quarter. Perryman Financial Advisory Inc. AD acquired a new stake in shares of Costco Wholesale during the fourth quarter valued at about $9,300,000. Finally, Oak Ridge Investments LLC increased its position in shares of Costco Wholesale by 7.3% during the fourth quarter. Oak Ridge Investments LLC now owns 22,117 shares of the retailer's stock worth $19,072,000 after acquiring an additional 1,496 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

Key Costco Wholesale News

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

• Positive Sentiment: Kirkland Signature is emerging as a growth engine. Expanded product offerings, pricing that is generally 15%–20% below national brands, and strong customer loyalty could improve Costco’s differentiation, margins and recurring sales. Costco's Kirkland Brand Is Becoming a Powerful Growth Engine
• Positive Sentiment: Expectations for fourth-quarter earnings are favorable. Wall Street reportedly anticipates a double-digit increase in earnings per share, providing a potential catalyst as investors assess whether Costco can sustain its growth premium. What to Expect From Costco Wholesale's Q4 2026 Earnings Report
• Positive Sentiment: Seasonal and ancillary initiatives may support engagement. Record projected back-to-school spending, a trade-in program that provides gift cards for old electronics, and continued interest in Costco’s low-priced gasoline could drive traffic and reinforce the membership value proposition. Costco will take your old tech and gift you a gift card
• Neutral Sentiment: Investor opinions remain divided. Commentary presents Costco as a high-quality retailer that can continue rewarding investors, but also emphasizes recessionary consumer sentiment and a demanding valuation—currently around 48 times earnings—which could limit upside without strong results. Three Top Retail Stocks: Buy, Sell or Hold?
• Negative Sentiment: Fuel competition could pressure Costco’s traffic advantage. A new 7-Eleven gas discount challenges Costco’s reputation for cheap fuel, particularly as higher gasoline prices constrain household budgets. 7-Eleven has a gas discount that challenges Costco
• Negative Sentiment: Legal overhang persists. Coverage of a $14 million email-promotion settlement and a separate lawsuit alleging heavy metals in Orgain protein powder raises potential reputational, compliance and financial risks, though the reported settlement is unlikely to materially affect Costco’s overall earnings. Costco Customers Could Claim Cash From $14 Million Settlement

Insider Activity at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction that occurred 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 in the company, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.10% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Wells Fargo & Company boosted their price target on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 9th. UBS Group raised their price objective on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a research note on Wednesday, May 20th. Mizuho set a $1,100.00 target price on Costco Wholesale in a research report on Monday, June 1st. 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 report on Friday, May 29th. Finally, JPMorgan Chase & Co. reduced their target price on Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating for the company in a research note on Thursday, July 9th. Twenty-two analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Costco Wholesale presently has a consensus rating of "Moderate Buy" and an average price target of $1,059.07.

Costco Wholesale Stock Performance

Shares of Costco Wholesale stock opened at $951.58 on Tuesday. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The firm's 50-day simple moving average is $963.41 and its 200-day simple moving average is $981.10. The firm has a market cap of $422.01 billion, a PE ratio of 47.87, a price-to-earnings-growth ratio of 4.52 and a beta of 0.88.

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

Costco Wholesale Announces Dividend

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

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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