Emerald Investment Advisers LLC Purchases Shares of 6,539 Costco Wholesale Corporation $COST

Key Points

• Emerald Investment Advisers acquired 6,539 Costco shares during the second quarter, valued at approximately $6.1 million. Institutional investors collectively own 68.48% of Costco’s stock.
• Costco shares opened at $928.48, down 1.2%, while the company maintained a quarterly dividend of $1.47 per share, equivalent to a 0.6% annual yield.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and average price target of $1,059.53, although Costco’s high valuation and a DOJ beef-pricing investigation represent risks.

Emerald Investment Advisers LLC acquired a new position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm acquired 6,539 shares of the retailer's stock, valued at approximately $6,117,000.

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

Costco Wholesale Stock Down 1.2%

Shares of Costco Wholesale stock opened at $928.48 on Thursday. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The firm has a market cap of $411.76 billion, a price-to-earnings ratio of 46.70, a PEG ratio of 3.89 and a beta of 0.87. The company has a 50-day moving average of $944.65 and a 200 day moving average of $978.84. 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 Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were paid 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 currently 29.58%.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Strong sales momentum supports the investment case. Costco reported August net sales of $23.70 billion, up 9.9% year over year. Fourth-quarter sales rose 11.3% to $93.9 billion, while fiscal-year sales increased 10.2% to $297.3 billion. Total comparable sales grew 8.4% for the year, and digitally enabled sales jumped 20.9%. Costco Wholesale Corporation Reports August Sales Results
• Positive Sentiment: Analyst sentiment remains favorable. Mizuho reiterated a Buy rating and maintained a $1,100 price target, citing confidence in Costco’s membership-driven growth. Recent analyst targets generally remain above the current trading level, with a reported six-month median target of $1,125. Analyst Reiterates Buy on Costco
• Neutral Sentiment: Calendar effects clouded the monthly comparison. Costco said the later timing of Labor Day reduced August total and comparable sales growth by slightly less than 75 basis points. Underlying performance remained positive, but investors may look for confirmation in the next report.
• Negative Sentiment: Costco Next was abruptly discontinued. The company shut down the online Costco Next marketplace without notice. While the service is unlikely to materially affect near-term financial results, the move could disappoint members and remove a customer-engagement perk. Costco has ended this online service without notice
• Negative Sentiment: Regulatory uncertainty increased. The U.S. Department of Justice expanded an investigation into rising beef prices to include Costco and other major retailers. Potential reputational, legal, or margin-related consequences create an overhang, although no wrongdoing has been established. DOJ expands beef price investigation
• Negative Sentiment: Valuation leaves little room for disappointment. Costco trades at roughly 47 times earnings, with a PEG ratio above 4, and shares remain below their 50-day and 200-day moving averages. Insider activity has also consisted of sales rather than purchases in recent months, adding to investor caution.

Insider Buying and Selling at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction that occurred 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 directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.10% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on COST shares. UBS Group lifted 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. 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. Sanford C. Bernstein lifted their price objective on Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an "outperform" rating in a research report on Friday, May 29th. Oppenheimer lifted their price objective on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an "outperform" rating in a research report on Tuesday, May 19th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $1,120.00 target price on shares of Costco Wholesale in a research report on Thursday, August 6th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Costco Wholesale has a consensus rating of "Moderate Buy" and a consensus price target of $1,059.53.

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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