Flputnam Investment Management Co. Increases Stock Position in Costco Wholesale Corporation $COST

Key Points

• Flputnam Investment Management increased its Costco position by 38.8% in the second quarter, bringing its holdings to 84,347 shares valued at approximately $78.9 million. Institutional investors collectively own 68.48% of Costco’s stock.
• Costco reported strong fourth-quarter sales of $93.9 billion, up 11.3% year over year, while digitally enabled comparable sales rose 19.5%. Analysts maintain a “Moderate Buy” consensus with an average price target of $1,056.03.
• Shares opened at $910.18, below their 50-day and 200-day moving averages, while the stock trades at a high P/E ratio of 45.78. Costco also pays a quarterly dividend of $1.47 per share, equivalent to a 0.6% yield.

Flputnam Investment Management Co. increased its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 38.8% during the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 84,347 shares of the retailer's stock after purchasing an additional 23,564 shares during the period. Costco Wholesale accounts for 0.9% of Flputnam Investment Management Co.'s holdings, making the stock its 21st biggest holding. Flputnam Investment Management Co.'s holdings in Costco Wholesale were worth $78,904,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of COST. World Investment Advisors boosted its holdings in shares of Costco Wholesale by 8.4% in the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock valued at $15,835,000 after buying an additional 1,560 shares in the last quarter. Sarasin & Partners LLP raised its stake in shares of Costco Wholesale by 6.9% during the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer's stock worth $200,372,000 after acquiring an additional 13,795 shares in the last quarter. Perryman Financial Advisory Inc. AD purchased a new stake in Costco Wholesale during the fourth quarter valued at approximately $9,300,000. Hyperion Asset Management Ltd lifted its position in Costco Wholesale by 9.0% during the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer's stock valued at $64,325,000 after acquiring an additional 5,656 shares during the last quarter. Finally, Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust acquired a new stake in Costco Wholesale in the fourth quarter valued at approximately $5,813,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Costco Wholesale

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

• Positive Sentiment: Strong fourth-quarter sales: Costco reported fourth-quarter net sales of $93.9 billion, up 11.3% year over year. Digitally enabled comparable sales increased 19.5%, suggesting e-commerce and omnichannel initiatives remain important growth drivers. Costco's Q4 Sales Rise 11.3% as Digital Momentum Remains Strong
• Positive Sentiment: Analyst upgrade: Freedom Broker raised Costco from “hold” to “buy” and established a $1,030 price target, implying meaningful potential upside from recent trading levels. However, the upgrade has not yet overcome broader selling pressure. Costco Stock Falls Despite Freedom Broker Upgrade to Buy
• Neutral Sentiment: Returns and liquidation operations: Reports that Costco resells some returned merchandise through liquidation and B-stock auctions provide additional context on its inventory practices. The activity appears operational rather than a major new earnings catalyst, although it may help recover value from returned goods. How Costco Resells Items Returned Under Its Satisfaction Guarantee Policy
• Negative Sentiment: Premium valuation and competitive concerns: Costco’s recent underperformance has renewed debate over whether its high valuation is justified. Jim Cramer argued that the retailer may have lost some of its edge, while other commentary points to competition from discount stores. With a price-to-earnings ratio above 45, investors may be particularly sensitive to any slowdown in growth or membership appeal. Cramer Warns Costco May Have Lost Its Edge
• Negative Sentiment: Supplier bankruptcy headline: The loss of a Costco distribution deal contributed to a beverage brand’s Chapter 11 filing. This is not a direct financial threat to Costco, but it highlights vendor and product-selection risks within its merchandise ecosystem. Loss of Costco Deal Helps Push Beverage Brand Into Chapter 11

Costco Wholesale Stock Performance

Shares of NASDAQ COST opened at $910.18 on Wednesday. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The company has a 50 day simple moving average of $942.45 and a two-hundred day simple moving average of $976.18. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The stock has a market cap of $403.65 billion, a price-to-earnings ratio of 45.78, a PEG ratio of 3.80 and a beta of 0.86.

Costco Wholesale Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were given a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale's dividend payout ratio (DPR) is currently 29.58%.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on COST shares. Truist Financial upped their price target on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research report on Friday, May 29th. The Goldman Sachs Group raised their price objective on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. JPMorgan Chase & Co. dropped their target price on 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. BTIG Research reaffirmed a "buy" rating and set a $1,125.00 target price on shares of Costco Wholesale in a research report on Thursday, September 3rd. Finally, Mizuho set a $1,100.00 price target on Costco Wholesale in a research note on Monday, June 1st. Twenty-two research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $1,056.03.

Insider Buying and Selling at Costco Wholesale

In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of Costco Wholesale stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. This trade represents a 15.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.10% of the company's stock.

About Costco Wholesale

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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