Dividend Assets Capital LLC Has $23.93 Million Stake in Costco Wholesale Corporation $COST

Key Points

• Dividend Assets Capital LLC trimmed its Costco position by 6.6% in the first quarter, selling 1,688 shares and ending with 24,016 shares worth about $23.93 million. Costco remains its second-largest holding, making up 4.8% of the portfolio.
• Institutional ownership in Costco remains high at 68.48%, while insider activity was limited to Director Kenneth D. Denman selling 885 shares in late June. Other hedge funds also made large moves in COST, including several significant increases in stakes.
• Analysts are still generally positive on Costco, with 22 Buy ratings and an average Moderate Buy rating, but the stock continues to face valuation concerns. Costco also recently raised its quarterly dividend to $1.47 per share, though its yield remains modest at about 0.6%.

Dividend Assets Capital LLC lessened its position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 6.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 24,016 shares of the retailer's stock after selling 1,688 shares during the quarter. Costco Wholesale comprises about 4.8% of Dividend Assets Capital LLC's investment portfolio, making the stock its 2nd largest position. Dividend Assets Capital LLC's holdings in Costco Wholesale were worth $23,930,000 at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in COST. Diamant Asset Management Inc. lifted its position in Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after purchasing an additional 6,720,130 shares during the period. Norges Bank acquired a new stake in shares of Costco Wholesale during the 4th quarter worth approximately $5,195,415,000. Corient Private Wealth LLC grew its position in shares of Costco Wholesale by 838.9% during the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock worth $5,282,182,000 after buying an additional 5,472,968 shares during the period. Cardano Risk Management B.V. grew its position in shares of Costco Wholesale by 907.1% during the 4th quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer's stock worth $1,539,346,000 after buying an additional 1,607,833 shares during the period. Finally, Assenagon Asset Management S.A. raised its stake in shares of Costco Wholesale by 1,586.8% during the fourth quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer's stock worth $980,857,000 after buying an additional 1,070,005 shares during the last quarter. Institutional investors own 68.48% of the company's stock.

Insider Activity at Costco Wholesale

In related news, Director Kenneth D. 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 value of $847,343.25. Following the completion of the sale, the director owned 4,779 shares in the company, valued at $4,575,653.55. This represents a 15.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.10% of the stock is currently owned by corporate insiders.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Costco is expanding its footprint with several new warehouse openings and planned locations across the U.S., which could support membership growth and future revenue. Costco to Open New Stores Across the U.S.: Full List of Locations
• Positive Sentiment: New store approvals in California and other regions suggest Costco’s growth runway remains intact, even if some local residents are pushing back. New Costco approved in California, but some locals say location is 'unnecessary'
• Positive Sentiment: Costco began alcohol sales at a Pennsylvania store, another example of incremental in-store offerings that can increase traffic and basket size. Costco Wholesale begins alcohol sales at Pennsylvania store
• Neutral Sentiment: Articles on a possible special dividend and a potential stock split are mostly speculative; they may interest shareholders, but they do not appear to be the main near-term driver of the stock. Will Costco Pay a Special Dividend in 2026? Here's What History Says.
• Neutral Sentiment: Analysts and commentators continue to debate Costco’s valuation, noting strong long-term returns but also that the stock looks expensive on earnings, which can cap upside. Costco (COST) Stock Looks Strong On Returns But Expensive On Earnings
• Negative Sentiment: One recent analysis said Costco’s growth engine may be losing momentum as lower fuel prices could reduce a key traffic driver and create execution risk for the stock. Costco’s secret growth engine may be running out of gas
• Negative Sentiment: Another report highlighted that Costco has underperformed the broader market over the past three months, reflecting investor concern about its premium valuation. Why Costco Stock (COST) Underperformed the S&P 500 Over the Past 3 Months

Analyst Ratings Changes

COST has been the topic of several analyst reports. TD Cowen restated a "buy" rating and issued a $1,175.00 price objective on shares of Costco Wholesale in a report on Wednesday, June 3rd. Bank of America lifted their target price on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Guggenheim reissued a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Mizuho set a $1,100.00 price target on Costco Wholesale in a research note on Monday, June 1st. Finally, JPMorgan Chase & Co. raised their price target on Costco Wholesale from $1,060.00 to $1,110.00 and gave the stock an "overweight" rating in a research report on Friday, April 17th. Twenty-two analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $1,061.45.

Costco Wholesale Stock Performance

Shares of NASDAQ:COST opened at $951.67 on Monday. The firm's 50 day simple moving average is $990.38 and its 200 day simple moving average is $973.36. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The company has a market capitalization of $422.05 billion, a price-to-earnings ratio of 47.87, a P/E/G ratio of 4.61 and a beta of 0.88. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (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 firm had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. During the same quarter in the prior year, the firm posted $4.28 EPS. As a group, sell-side analysts forecast that Costco Wholesale Corporation will post 20.38 earnings per share for the current year.

Costco Wholesale Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were issued a $1.47 dividend. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is presently 29.58%.

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.

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