Dearborn Partners LLC Purchases Shares of 24,714 Costco Wholesale Corporation $COST

Key Points

• Dearborn Partners bought a new Costco position: The fund purchased 24,714 shares valued at approximately $23.1 million in the second quarter. Institutional investors collectively own 68.48% of Costco’s outstanding stock.
• Costco shares opened at $915.74, with a 12-month range of $844.06 to $1,096.50 and a P/E ratio of 46.06. The company pays a quarterly dividend of $1.47, equal to a 0.6% yield.
• Analyst sentiment remains moderately bullish: Costco has a consensus “Moderate Buy” rating and an average price target of $1,056.90, while one director recently sold 885 shares for approximately $847,000.

Dearborn Partners LLC purchased a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 24,714 shares of the retailer's stock, valued at approximately $23,120,000.

Other hedge funds have also made changes to their positions in the company. Brighton Jones LLC boosted its holdings in Costco Wholesale by 12.3% in the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock valued at $18,165,000 after purchasing an additional 2,172 shares in the last quarter. Revolve Wealth Partners LLC raised its holdings in 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 raised its holdings in Costco Wholesale by 4.5% during the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock worth $3,814,000 after purchasing an additional 165 shares in the last quarter. Pinnacle Wealth Planning Services Inc. lifted its position in shares of Costco Wholesale by 1.1% during the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock worth $2,089,000 after buying an additional 23 shares during the last quarter. Finally, Schnieders Capital Management LLC. boosted its holdings in shares of Costco Wholesale by 2.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock valued at $8,416,000 after buying an additional 182 shares in the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale Stock Performance

Shares of COST stock opened at $915.74 on Monday. Costco Wholesale Corporation has a twelve month low of $844.06 and a twelve month 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. The business's 50 day moving average is $943.58 and its two-hundred day moving average is $977.46. The company has a market capitalization of $406.11 billion, a P/E ratio of 46.06, a price-to-earnings-growth ratio of 3.80 and a beta of 0.86.

Costco Wholesale Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were paid a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale's payout ratio is currently 29.58%.

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. DA Davidson reaffirmed a "neutral" rating and issued a $1,000.00 target price on shares of Costco Wholesale in a research report on Thursday. HC Wainwright restated a "buy" rating on shares of Costco Wholesale in a research note on Monday, June 1st. UBS Group raised their price objective on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a report on Wednesday, May 20th. Sanford C. Bernstein set a $1,144.00 target price on Costco Wholesale in a research report on Friday. Finally, Royal Bank Of Canada began coverage on Costco Wholesale in a report on Monday, July 13th. They issued a "sector perform" rating and a $1,000.00 target price for the company. Twenty-one investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Costco Wholesale presently has an average rating of "Moderate Buy" and a consensus target price of $1,056.90.

Insider Buying and Selling

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the company's stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.10% of the company's stock.

Trending Headlines about 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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