Envestnet Asset Management Inc. Buys 424,982 Shares of Costco Wholesale Corporation $COST

Key Points

• Envestnet Asset Management increased its Costco stake by 68.9%, purchasing 424,982 additional shares to hold 1.04 million shares valued at approximately $974.8 million. Institutional investors collectively own 68.48% of Costco.
• Analyst sentiment remains favorable, with 22 analysts rating the stock Buy, 11 Hold, and one Sell. Costco has an overall “Moderate Buy” rating and an average price target of $1,052.65.
• Costco shares recently traded at $904.70, below their 52-week high of $1,096.50, while the company maintains a quarterly dividend of $1.47 per share, or $5.88 annualized, yielding about 0.6%.

Envestnet Asset Management Inc. increased its stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 68.9% in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 1,042,046 shares of the retailer's stock after purchasing an additional 424,982 shares during the quarter. Envestnet Asset Management Inc. owned about 0.23% of Costco Wholesale worth $974,803,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in shares of Costco Wholesale in the fourth quarter worth about $27,000. Lifetime Wealth Management P.C. purchased a new position in Costco Wholesale in the fourth quarter worth $28,000. C M Bidwell & Associates Ltd. bought a new position in shares of Costco Wholesale during the 2nd quarter valued at about $28,000. Burk Holdings LLC bought a new position in Costco Wholesale during the second quarter valued at approximately $30,000. Finally, Manning & Napier Advisors LLC purchased a new position in Costco Wholesale in the 2nd quarter worth $30,000. 68.48% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the company. JPMorgan Chase & Co. lowered their price objective on Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating for the company in a research report on Thursday, July 9th. Sanford C. Bernstein set a $1,144.00 price target on shares of Costco Wholesale in a research report on Friday, September 4th. HC Wainwright reaffirmed a "buy" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Weiss Ratings lowered shares of Costco Wholesale from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 2nd. Finally, TD Cowen reissued a "buy" rating and issued a $1,175.00 target price on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $1,052.65.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Analysts remain constructive: BTIG reaffirmed a Buy rating and a $1,125 price target, citing Costco’s durable traffic, membership and sales growth. BTIG reiterates Buy rating and $1,125 price target
• Positive Sentiment: Q4 expectations remain strong, with one preview forecasting approximately $94 billion in sales and $6.59 in earnings per share. Robust traffic, engaged members, digital momentum and membership-fee income could support the results. Costco Q4 preview
• Positive Sentiment: Costco’s nationwide same-day delivery rollout through DoorDash expands member convenience and could increase order frequency, digital engagement and sales reach. However, delivery economics will need to be demonstrated. Costco nationwide same-day delivery
• Neutral Sentiment: Higher gasoline prices may lift Costco’s fuel revenue and traffic, but they can also pressure consumers’ discretionary budgets. Investors will watch the net effect in the earnings report. Costco Q4 preview and gasoline prices
• Neutral Sentiment: Options markets imply elevated volatility around earnings, increasing the likelihood of a substantial post-report move. A potential special dividend is also a topic of investor speculation, not a confirmed announcement. Expected Costco earnings move
• Negative Sentiment: The benefit from Costco’s 2024 membership-fee increase may be largely reflected in results after Thursday’s report. Because membership fees contribute roughly half of operating income, slower fee-income growth could weigh on future earnings momentum. Costco membership fee boost
• Negative Sentiment: Investors remain concerned about Costco’s premium valuation, margin pressure and macroeconomic uncertainty. Commentary that the stock is “acting poorly” reflects weakened sentiment ahead of the earnings catalyst. Buy, hold or sell Costco before earnings

Costco Wholesale Trading Up 0.6%

NASDAQ COST traded up $5.29 during trading on Wednesday, hitting $904.70. The company had a trading volume of 2,279,427 shares, compared to its average volume of 2,182,632. 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 one year low of $844.06 and a one year high of $1,096.50. The company has a market cap of $401.22 billion, a price-to-earnings ratio of 45.51, a price-to-earnings-growth ratio of 3.77 and a beta of 0.86. The company's fifty day moving average is $935.54 and its 200-day moving average is $969.45.

Costco Wholesale Announces Dividend

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

Costco Wholesale Company Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.

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