Covington Investment Advisors Inc. Purchases Shares of 6,804 Costco Wholesale Corporation $COST

Key Points

• Covington Investment Advisors initiated a Costco position by purchasing 6,804 shares valued at approximately $6.4 million. Institutional investors collectively own 68.48% of Costco’s outstanding stock.
• Analysts remain broadly positive, with 21 Buy, 12 Hold and one Sell rating; the consensus is Moderate Buy with a target price of $1,059.53.
• Costco reported strong sales momentum, including August net sales growth of 9.9% year over year and digitally enabled sales growth of 17.9%, though the company faces risks from a DOJ beef-pricing inquiry and the shutdown of its Costco Next marketplace.

Covington Investment Advisors Inc. acquired a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 6,804 shares of the retailer's stock, valued at approximately $6,365,000.

Several other large investors also recently bought and sold shares of COST. Palisade Asset Management LLC grew its stake in shares of Costco Wholesale by 1.4% in the 4th quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock worth $605,000 after buying an additional 10 shares in the last quarter. Graybill Wealth Management LTD. raised its position in Costco Wholesale by 0.3% in the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock worth $2,754,000 after purchasing an additional 10 shares during the period. Wealth Effects LLC lifted its stake in Costco Wholesale by 1.2% in the first quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock worth $871,000 after purchasing an additional 10 shares during the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. boosted its holdings in Costco Wholesale by 1.8% during the 1st quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock valued at $549,000 after acquiring an additional 10 shares during the period. Finally, First National Bank of Hutchinson grew its holdings in shares of Costco Wholesale by 0.9% in the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock worth $1,094,000 after purchasing an additional 10 shares during the last quarter. Institutional investors own 68.48% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have recently commented on COST shares. Oppenheimer raised their target price on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 19th. Sanford C. Bernstein increased their target price on Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an "outperform" rating in a research report on Friday, May 29th. The Goldman Sachs Group lifted their price target on Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a report on Friday, May 29th. BTIG Research reissued a "buy" rating and issued a $1,125.00 price target on shares of Costco Wholesale in a research report on Thursday. Finally, Roth Capital raised their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a report on Friday, May 29th. Twenty-one equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,059.53.

Insider Activity at Costco Wholesale

In other news, Director Kenneth Denman sold 885 shares of the stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the sale, the director owned 4,779 shares in the company, valued at $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.10% of the stock is owned by company insiders.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Strong August and fiscal-year sales: Costco reported August net sales of $23.70 billion, up 9.9% year over year. Fourth-quarter sales rose 11.3% to $93.9 billion, while fiscal-year sales increased 10.2% to $297.3 billion. Total comparable sales grew 8.4% for August and the fiscal year, and digitally enabled sales rose 17.9% for the month and 20.9% for the year. Costco August Sales Results
• Positive Sentiment: Analysts remain constructive: BTIG reaffirmed its Buy rating with a $1,125 price target, while Bank of America maintained a Buy rating and a $1,200 target. These targets imply substantial upside and suggest analysts believe Costco’s membership model and sales momentum support its premium valuation. BTIG Costco Rating
• Neutral Sentiment: Mixed analyst signal: DA Davidson reaffirmed a Neutral rating but lifted its price target to $1,000, indicating limited conviction even while acknowledging potential appreciation.
• Neutral Sentiment: Long-term optimism: Commentary argues Costco could eventually surpass Home Depot and Lowe’s in market value if it sustains membership growth, warehouse expansion and consistent execution. This is a long-range thesis rather than a near-term catalyst. Costco Long-Term Valuation Forecast
• Negative Sentiment: DOJ beef-pricing investigation: The Justice Department is requesting records from Costco and other major retailers regarding beef prices, costs, margins and purchasing strategies. The inquiry creates potential legal, regulatory and operational risks, although no wrongdoing has been established. DOJ Beef Price Inquiry
• Negative Sentiment: Costco Next shutdown: The abrupt ending of the online Costco Next marketplace disappointed some members and raises questions about the company’s digital strategy, though the direct financial effect appears limited. Costco Next Shutdown

Costco Wholesale Price Performance

NASDAQ COST opened at $925.41 on Friday. The company has a market cap of $410.40 billion, a price-to-earnings ratio of 46.55, a PEG ratio of 3.85 and a beta of 0.86. 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's fifty day moving average price is $944.31 and its 200 day moving average price is $978.18. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50.

Costco Wholesale Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 7th. Investors 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 payout ratio is 29.58%.

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.

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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