Dearborn Partners LLC Invests $31.95 Million in Costco Wholesale Corporation $COST

Key Points

• Dearborn Partners initiated a $31.95 million Costco position by purchasing 32,064 shares in the second quarter, making Costco approximately 1.7% of its portfolio. Institutional investors and hedge funds collectively own 68.48% of the company.
• Wall Street maintains a generally positive view, with 21 Buy, 12 Hold, and 1 Sell ratings. Costco has a “Moderate Buy” consensus rating and an average price target of $1,056.90.
• Costco shares opened at $915.74, while the company recently paid a quarterly dividend of $1.47 per share, equivalent to a 0.6% yield and a 29.58% payout ratio. The stock trades at a relatively high P/E ratio of 46.06, highlighting valuation sensitivity if growth slows.

Dearborn Partners LLC purchased a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the second quarter, according to its most recent disclosure with the SEC. The firm purchased 32,064 shares of the retailer's stock, valued at approximately $31,949,000. Costco Wholesale makes up approximately 1.7% of Dearborn Partners LLC's investment portfolio, making the stock its 17th biggest position.

Several other hedge funds also recently made changes to their positions in the business. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of Costco Wholesale in the fourth quarter valued at $27,000. Lifetime Wealth Management P.C. purchased a new stake in Costco Wholesale in the 4th quarter worth about $28,000. C M Bidwell & Associates Ltd. acquired a new stake in shares of Costco Wholesale during the second quarter worth approximately $28,000. Mcguire Capital Advisors Inc. purchased a new stake in Costco Wholesale in the 4th quarter worth approximately $28,000. Finally, Burk Holdings LLC acquired a new position in shares of Costco Wholesale in the second quarter worth $30,000. Institutional investors and hedge funds own 68.48% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on COST shares. DA Davidson reissued a "neutral" rating and set a $1,000.00 price objective on shares of Costco Wholesale in a research report on Thursday. HC Wainwright reaffirmed a "buy" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Roth Capital upped their target price on Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a research report on Friday, May 29th. UBS Group lifted their price target on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a report on Wednesday, May 20th. Finally, Sanford C. Bernstein set a $1,144.00 price objective on shares of Costco Wholesale in a research report on Friday. Twenty-one analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $1,056.90.

Costco Wholesale Price Performance

NASDAQ COST opened at $915.74 on Friday. 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 Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a fifty day simple moving average of $943.58 and a 200 day simple moving average of $977.75. The company has a market cap of $406.11 billion, a P/E ratio of 46.06, a P/E/G ratio of 3.84 and a beta of 0.86.

Costco Wholesale Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were paid a dividend of $1.47 per share. The ex-dividend date was Friday, July 24th. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale's dividend payout ratio is presently 29.58%.

Insider Activity

In other news, Director Kenneth Denman sold 885 shares of the firm's 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 approximately $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.10% of the company's stock.

More Costco Wholesale News

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 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.

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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