Equitable Holdings Inc. Acquires New Shares in Costco Wholesale Corporation $COST

Key Points

• Equitable Holdings acquired 44,508 Costco shares during the second quarter, valued at approximately $41.6 million. Institutional investors collectively own 68.48% of Costco’s stock.
• Analyst sentiment remains favorable, with 21 Buy, 12 Hold, and one Sell rating, producing a consensus “Moderate Buy” rating and an average price target of $1,056.90.
• Costco shares opened at $915.74, while the company maintains a high valuation at a P/E ratio of 46.06; it also recently paid a quarterly dividend of $1.47, equivalent to a 0.6% annualized yield.

Equitable Holdings Inc. bought a new stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 44,508 shares of the retailer's stock, valued at approximately $41,636,000.

Several other institutional investors have also recently made changes to their positions in COST. C M Bidwell & Associates Ltd. purchased a new stake in Costco Wholesale during the 2nd quarter worth about $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale during the 4th quarter valued at about $27,000. Burk Holdings LLC purchased a new position in Costco Wholesale during the 2nd quarter valued at about $30,000. Manning & Napier Advisors LLC bought a new stake in shares of Costco Wholesale during the second quarter valued at about $30,000. Finally, Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale during the fourth quarter valued at about $28,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Oppenheimer raised their price objective on shares of 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. Weiss Ratings lowered shares of Costco Wholesale from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday. JPMorgan Chase & Co. lowered their target price on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating on the stock in a research note on Thursday, July 9th. Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday, June 1st. Finally, Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Twenty-one analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $1,056.90.

More Costco Wholesale News

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

Insiders Place Their Bets

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the 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 transaction, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.10% of the stock is owned by insiders.

Costco Wholesale Stock Performance

Shares of COST stock opened at $915.74 on Monday. The business has a 50-day moving average price of $943.58 and a two-hundred day moving average price of $977.46. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The firm has a market cap 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 announced a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were given a $1.47 dividend. The ex-dividend date was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale's payout ratio is presently 29.58%.

Costco Wholesale 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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