Daiwa Securities Group Inc. Acquires 6,139 Shares of Costco Wholesale Corporation $COST

Key Points

• Daiwa Securities increased its Costco stake by 4.1%, purchasing 6,139 additional shares to hold 155,318 shares valued at approximately $145.3 million. Institutional investors own 68.48% of Costco.
• Costco reported quarterly revenue of $70.53 billion, exceeding expectations, but EPS of $4.93 narrowly missed the $4.94 consensus estimate. Shares opened at $956.99, while the stock trades at a high valuation of about 48 times earnings.
• The company declared a quarterly dividend of $1.47, or $5.88 annualized, representing a 0.6% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $1,059.53, though ratings range from “Buy” to “Sell.”

Daiwa Securities Group Inc. grew its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 4.1% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 155,318 shares of the retailer's stock after buying an additional 6,139 shares during the quarter. Daiwa Securities Group Inc.'s holdings in Costco Wholesale were worth $145,295,000 at the end of the most recent reporting period.

A number of other institutional investors have also made changes to their positions in COST. Brighton Jones LLC increased its position in Costco Wholesale by 12.3% in the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock valued at $18,165,000 after acquiring an additional 2,172 shares in the last quarter. Revolve Wealth Partners LLC lifted its position in shares of Costco Wholesale by 13.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock worth $1,029,000 after purchasing an additional 130 shares in the last quarter. Sivia Capital Partners LLC grew its stake in shares of Costco Wholesale by 4.5% during the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock valued at $3,814,000 after purchasing an additional 165 shares during the last quarter. Pinnacle Wealth Planning Services Inc. grew its stake in shares of Costco Wholesale by 1.1% during the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock valued at $2,089,000 after purchasing an additional 23 shares during the last quarter. Finally, Schnieders Capital Management LLC. increased its holdings in shares of Costco Wholesale by 2.2% in the second quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock valued at $8,416,000 after purchasing an additional 182 shares in the last quarter. 68.48% of the stock is owned by institutional investors.

Key Costco Wholesale News

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

• Positive Sentiment: New Medicare Advantage offering could expand Costco’s membership value proposition. Costco is partnering with nonprofit SCAN Health Plan to offer co-branded Medicare Advantage and supplemental plans, initially in two states pending regulatory approval. The broader rollout could include pharmacy, vision, hearing and over-the-counter benefits, potentially strengthening member retention and creating an additional revenue stream. Costco’s Next Big Bulk Item: Medicare Advantage
• Positive Sentiment: Growing cash reserves may support another special dividend. Commentary suggests Costco’s accumulating cash could lead to a substantial shareholder payout this fall. While no dividend has been announced, the possibility may provide support for the stock and reinforce Costco’s shareholder-return appeal. Costco's Cash Pile Keeps Building
• Neutral Sentiment: Costco’s merchandising strategy continues to drive member engagement. The company’s practice of rotating or discontinuing popular products can frustrate shoppers, but limited availability and surprise product returns may encourage more frequent warehouse visits and support the treasure-hunt shopping experience. Costco keeps discontinuing popular products
• Negative Sentiment: Valuation leaves limited room for execution missteps. COST trades at roughly 48 times earnings, with a PEG ratio above 4, and analysts have questioned whether its strong multiyear performance is already reflected in the share price. The company’s latest quarterly EPS slightly missed consensus, although revenue exceeded expectations, adding to investor focus on earnings growth. Costco Stock Looks Fully Priced

Costco Wholesale Stock Down 0.5%

NASDAQ:COST opened at $956.99 on Thursday. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. 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 firm has a market capitalization of $424.41 billion, a P/E ratio of 48.14, a P/E/G ratio of 4.57 and a beta of 0.87. The stock's fifty day simple moving average is $948.67 and its 200-day simple moving average is $981.23.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 EPS 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 the consensus estimate of $70.12 billion. During the same quarter in the prior year, the company posted $4.28 EPS. Equities research analysts expect that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were paid a $1.47 dividend. 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 29.58%.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on COST shares. TD Cowen restated a "buy" rating and issued a $1,175.00 price objective on shares of Costco Wholesale in a research report on Wednesday, June 3rd. BTIG Research reissued a "buy" rating and issued a $1,125.00 target price on shares of Costco Wholesale in a research note on Friday, May 29th. Citigroup assumed coverage on Costco Wholesale in a research report on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 target price for the company. JPMorgan Chase & Co. cut their price target on Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating on the stock in a research note on Thursday, July 9th. Finally, Roth Capital lifted their price objective on Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research report on Friday, May 29th. Twenty-two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Costco Wholesale currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,059.53.

Insider Activity at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction that occurred 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 directly owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.10% of the stock is currently owned by company insiders.

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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