Daiichi Life Insurance Co. Ltd. Acquires Shares of 26,146 Costco Wholesale Corporation $COST

Key Points

• Daiichi Life Insurance acquired 26,146 Costco shares in the second quarter, valued at approximately $24.5 million. Institutional investors and hedge funds collectively own 68.48% of Costco’s stock.
• Analyst sentiment remains positive, with 22 Buy, 11 Hold, and one Sell rating; the consensus rating is “Moderate Buy” with an average price target of $1,059.53.
• Costco pays a quarterly dividend of $1.47 per share, or $5.88 annually, yielding about 0.6%. Shares recently traded at $928.48, while the company faces valuation concerns and regulatory uncertainty related to a Justice Department beef-pricing investigation.

Daiichi Life Insurance Co. Ltd. bought a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 26,146 shares of the retailer's stock, valued at approximately $24,459,000.

Several other hedge funds and other institutional investors have also recently made changes to their positions in COST. Palisade Asset Management LLC grew its holdings in Costco Wholesale by 1.4% in the fourth quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock valued at $605,000 after purchasing an additional 10 shares during the last quarter. Graybill Wealth Management LTD. grew its position in shares of Costco Wholesale by 0.3% in the fourth quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock valued at $2,754,000 after purchasing an additional 10 shares during the last quarter. Wealth Effects LLC increased its stake in shares of Costco Wholesale by 1.2% during the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock worth $871,000 after purchasing an additional 10 shares in the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. raised its position in shares of 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 worth $549,000 after purchasing an additional 10 shares during the last quarter. Finally, First National Bank of Hutchinson raised its position in shares of Costco Wholesale by 0.9% during the 1st 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 and hedge funds own 68.48% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on COST. Truist Financial upped their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a research report on Friday, May 29th. TD Cowen restated a "buy" rating and issued a $1,175.00 target price on shares of Costco Wholesale in a report on Wednesday, June 3rd. The Goldman Sachs Group raised their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a research note on Friday, May 29th. Guggenheim reissued a "neutral" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Finally, HC Wainwright reissued a "buy" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $1,059.53.

Insider Transactions at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of the business's stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the sale, the director owned 4,779 shares of the company's stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is owned by corporate insiders.

Costco Wholesale Stock Performance

Costco Wholesale stock opened at $928.48 on Thursday. The firm has a market capitalization of $411.76 billion, a PE ratio of 46.70, a price-to-earnings-growth ratio of 3.89 and a beta of 0.87. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The stock's 50 day moving average price is $944.65 and its 200 day moving average price is $978.84. 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 Announces Dividend

The business also recently declared 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 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 (DPR) is presently 29.58%.

Costco Wholesale News Roundup

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

• Positive Sentiment: Strong sales momentum supports the investment case. 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 the year, and digitally enabled sales jumped 20.9%. Costco Wholesale Corporation Reports August Sales Results
• Positive Sentiment: Analyst sentiment remains favorable. Mizuho reiterated a Buy rating and maintained a $1,100 price target, citing confidence in Costco’s membership-driven growth. Recent analyst targets generally remain above the current trading level, with a reported six-month median target of $1,125. Analyst Reiterates Buy on Costco
• Neutral Sentiment: Calendar effects clouded the monthly comparison. Costco said the later timing of Labor Day reduced August total and comparable sales growth by slightly less than 75 basis points. Underlying performance remained positive, but investors may look for confirmation in the next report.
• Negative Sentiment: Costco Next was abruptly discontinued. The company shut down the online Costco Next marketplace without notice. While the service is unlikely to materially affect near-term financial results, the move could disappoint members and remove a customer-engagement perk. Costco has ended this online service without notice
• Negative Sentiment: Regulatory uncertainty increased. The U.S. Department of Justice expanded an investigation into rising beef prices to include Costco and other major retailers. Potential reputational, legal, or margin-related consequences create an overhang, although no wrongdoing has been established. DOJ expands beef price investigation
• Negative Sentiment: Valuation leaves little room for disappointment. Costco trades at roughly 47 times earnings, with a PEG ratio above 4, and shares remain below their 50-day and 200-day moving averages. Insider activity has also consisted of sales rather than purchases in recent months, adding to investor caution.

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.

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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