D.B. Root & Company LLC Makes New Investment in Costco Wholesale Corporation $COST

Key Points

• D.B. Root & Company purchased 2,702 Costco shares during the second quarter, valued at approximately $2.53 million. Costco now represents about 0.5% of the firm’s portfolio, while institutional investors collectively own 68.48% of the company.
• Analyst sentiment remains positive overall: 21 analysts rate Costco a Buy, 12 recommend Hold, and one recommends Sell, producing a “Moderate Buy” consensus rating and an average price target of $1,056.90.
• Costco shares opened at $915.74, below their 50-day and 200-day moving averages, while the company pays a quarterly dividend of $1.47 per share, equivalent to an annualized $5.88 dividend and a 0.6% yield.

D.B. Root & Company LLC purchased a new position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 2,702 shares of the retailer's stock, valued at approximately $2,527,000. Costco Wholesale comprises about 0.5% of D.B. Root & Company LLC's holdings, making the stock its 27th biggest position.

A number of other institutional investors have also modified their holdings of the business. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in Costco Wholesale in the 4th quarter worth approximately $27,000. Lifetime Wealth Management P.C. bought a new stake in Costco Wholesale in the fourth quarter worth about $28,000. C M Bidwell & Associates Ltd. bought a new stake in shares of Costco Wholesale in the 2nd quarter worth approximately $28,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Costco Wholesale during the 4th quarter valued at $28,000. Finally, Burk Holdings LLC acquired a new position in shares of Costco Wholesale in the 2nd quarter valued at $30,000. Institutional investors own 68.48% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on COST shares. UBS Group boosted their target price on shares of 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. Truist Financial lifted their price target on Costco Wholesale from $977.00 to $1,011.00 and gave the company a "hold" rating in a report on Friday, May 29th. Citigroup initiated coverage on Costco Wholesale in a research note on Thursday, June 18th. They issued a "neutral" rating and a $1,020.00 price target for the company. Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a report on Monday, June 1st. Finally, Bank of America raised their price objective on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Twenty-one investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $1,056.90.

Costco Wholesale Stock Performance

Shares of NASDAQ COST opened at $915.74 on Friday. The business has a fifty day simple moving average of $943.58 and a 200 day simple moving average of $977.75. The firm has a market capitalization of $406.11 billion, a price-to-earnings ratio of 46.06, a PEG ratio of 3.84 and a beta of 0.86. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17.

Costco Wholesale Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders 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 dividend payout ratio (DPR) is presently 29.58%.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, Director Kenneth 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 transaction, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.10% of the stock is owned by corporate insiders.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Strong August sales: Net sales increased 9.9% year over year, with comparable sales rising across regions and digitally enabled sales advancing 17.9%. The figures point to resilient member demand and continued e-commerce momentum. Costco's August Sales Rise 9.9% as Digital Growth Stays Strong
• Positive Sentiment: Analyst support remains broad: BTIG reiterated a Buy rating with a $1,125 target, while Bank of America maintained its Buy rating and $1,200 target. Analysts cited resilient core performance, market-share gains, and higher earnings estimates. BTIG Reaffirms Buy on Costco
• Positive Sentiment: Long-term shareholder appeal: Commentary highlighted Costco’s consistent dividend growth since 2004, membership model, customer loyalty, and potential for continued earnings expansion.
• Neutral Sentiment: Store expansion: Costco is reportedly considering a new location in Thompson’s Station, Tennessee, supporting its long-term warehouse growth strategy, although the potential site has no immediate earnings impact.
• Neutral Sentiment: Mixed analyst valuation signals: DA Davidson reaffirmed a Neutral rating with a $1,000 target, while Bernstein retained a Buy rating but lowered its target to $1,144, indicating less room for upside despite confidence in the business.
• Negative Sentiment: Valuation concerns: Jim Cramer and other commentators argued that COST trades at roughly 43–49 times earnings, leaving the stock vulnerable if growth slows or results merely meet expectations. Cramer Says Costco at 49 Times Earnings Is the Mistake Loyal Shoppers Keep Making
• Negative Sentiment: Regulatory risk: The Department of Justice expanded a beef-pricing antitrust inquiry to Costco, seeking information on prices, costs, margins, purchasing, and supply-chain practices. Potential compliance costs or scrutiny could pressure sentiment. US DOJ Widens Beef Price Inquiry
• Negative Sentiment: Costco Next shutdown: The company’s online marketplace reportedly went offline without notice, raising questions about its digital strategy, although the platform is not viewed as central to Costco’s core business. Costco Next Online Marketplace Shut Down

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.

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