Envestnet Portfolio Solutions Inc. Has $19.67 Million Stock Holdings in Costco Wholesale Corporation $COST

Key Points

• Envestnet Portfolio Solutions increased its Costco stake by 49.6% in the second quarter, holding 21,023 shares valued at approximately $19.67 million. Institutional investors and hedge funds collectively own 68.48% of Costco’s shares.
• Analyst sentiment remains broadly positive, with Costco carrying a “Moderate Buy” consensus rating and an average price target of $1,052.65, although one firm downgraded the stock to “Hold.”
• Costco shares opened at $904.70, below their 50-day and 200-day moving averages, while investors face concerns about premium valuation, fading membership-fee benefits and potential earnings volatility. The company pays a quarterly dividend of $1.47 per share, yielding approximately 0.6%.

Envestnet Portfolio Solutions Inc. increased its position in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 49.6% during the second quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 21,023 shares of the retailer's stock after purchasing an additional 6,969 shares during the quarter. Envestnet Portfolio Solutions Inc.'s holdings in Costco Wholesale were worth $19,666,000 as of its most recent SEC filing.

Several other hedge funds have also bought and sold shares of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of Costco Wholesale during the 4th quarter worth approximately $27,000. Lifetime Wealth Management P.C. acquired a new stake in Costco Wholesale during the 4th quarter valued at $28,000. C M Bidwell & Associates Ltd. acquired a new stake in Costco Wholesale during the 2nd quarter valued at $28,000. Burk Holdings LLC bought a new position in Costco Wholesale during the second quarter worth $30,000. Finally, Manning & Napier Advisors LLC bought a new position in Costco Wholesale during the second quarter worth $30,000. 68.48% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Analyst support and solid earnings expectations: BTIG reaffirmed its Buy rating and maintained a $1,125 price target, citing Costco’s durable membership, traffic, sales and digital-growth drivers. Analysts cited in a Q4 preview expect approximately $94 billion in sales and $6.59 in earnings per share. Costco Q4 Preview: Members Are Engaged Despite Ongoing Macro Uncertainty
• Positive Sentiment: Membership engagement remains resilient: Continued traffic, membership growth and fee income could support results even as consumers face macroeconomic uncertainty. Costco’s warehouse model and treasure-hunt shopping experience may also reduce the urgency to match rivals’ same-day delivery offerings. Why Costco has the luxury of sitting out the delivery arms race
• Neutral Sentiment: Gas prices create both an opportunity and a risk: Higher fuel prices may increase gasoline revenue and drive more visits to Costco stations, but they can also pressure household budgets and reduce discretionary spending elsewhere. Investors will watch how these effects appear in comparable sales and margins. Costco Q4 Preview: Stock Hits 8-Month Lows, Will Higher Gas Prices Help Turn Things Around?
• Neutral Sentiment: DoorDash expansion is strategically mixed: Nationwide same-day delivery improves convenience and broadens Costco’s reach, but delivery fees, execution and potential cannibalization of warehouse visits could limit the financial benefit. What Does Costco Wholesale Nationwide Same Day Delivery Mean For Members?
• Negative Sentiment: Membership-fee tailwind is fading: Thursday’s report may be the last quarter to receive a meaningful boost from the 2024 fee increase. Because membership fees contribute roughly half of operating income, slower fee-income growth could make future earnings comparisons more difficult. Costco’s Membership Fee Boost Is About to Run Out
• Negative Sentiment: Valuation and earnings volatility remain concerns: Costco trades at a premium earnings multiple, while options markets imply an unusually large post-earnings move. Margin pressure, consumer sensitivity to higher rates and any disappointment in sales or guidance could weigh on the shares. Here’s How Much Costco Stock Is Expected to Move After Earnings

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on COST. TD Cowen reissued a "buy" rating and issued a $1,175.00 price objective on shares of Costco Wholesale in a research report on Wednesday, June 3rd. Weiss Ratings downgraded shares of Costco Wholesale from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 2nd. Sanford C. Bernstein set a $1,144.00 price target on shares of Costco Wholesale in a research note on Friday, September 4th. Freedom Broker raised Costco Wholesale from a "hold" rating to a "buy" rating and set a $1,030.00 target price on the stock in a research report on Tuesday, September 8th. Finally, HC Wainwright reiterated a "buy" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $1,052.65.

Costco Wholesale Stock Performance

Shares of NASDAQ:COST opened at $904.70 on Thursday. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The company's 50 day moving average price is $935.31 and its two-hundred day moving average price is $968.90. The firm has a market cap of $401.22 billion, a PE ratio of 45.51, a PEG ratio of 3.78 and a beta of 0.86. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17.

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 given 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 yield of 0.6%. Costco Wholesale's dividend payout ratio is currently 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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