IFP Advisors Inc Lowers Stock Position in Costco Wholesale Corporation $COST

Key Points

• IFP Advisors reduced its Costco position by 4.1% in the second quarter, selling 1,256 shares and retaining 29,628 shares valued at approximately $27.7 million. Institutional investors collectively own 68.48% of Costco’s stock.
• Analysts remain broadly positive: 22 rate Costco a Buy, 12 recommend Hold and one recommends Sell, resulting in a “Moderate Buy” consensus and an average price target of $1,056.03.
• Costco shares opened at $918.91, with a market capitalization of about $407.5 billion and a P/E ratio of 46.22. The company pays a quarterly dividend of $1.47, or $5.88 annually, representing a 0.6% yield.

IFP Advisors Inc cut its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 4.1% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 29,628 shares of the retailer's stock after selling 1,256 shares during the period. IFP Advisors Inc's holdings in Costco Wholesale were worth $27,716,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of Costco Wholesale during the 4th quarter worth approximately $27,000. Lifetime Wealth Management P.C. purchased a new stake in Costco Wholesale in the fourth quarter valued at approximately $28,000. C M Bidwell & Associates Ltd. acquired a new position in Costco Wholesale during the second quarter worth $28,000. Burk Holdings LLC acquired a new position in Costco Wholesale during the second quarter worth $30,000. Finally, Manning & Napier Advisors LLC purchased a new position in shares of Costco Wholesale during the second quarter worth $30,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on COST shares. UBS Group lifted their price objective on 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. Mizuho set a $1,100.00 target price on Costco Wholesale in a report on Monday, June 1st. Bank of America raised their target price on Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a "buy" rating in a report on Friday, May 29th. HC Wainwright reaffirmed a "buy" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Finally, DA Davidson reiterated a "neutral" rating and set a $1,000.00 price target on shares of Costco Wholesale in a research note on Thursday, September 3rd. Twenty-two analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Costco Wholesale presently has an average rating of "Moderate Buy" and a consensus price target of $1,056.03.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Dividend increase supports the investment case. Costco recently raised its dividend by 13%, reinforcing confidence in cash generation and adding to the appeal of the membership-based retailer, although the regular yield remains modest and special dividends can make the headline payout appear higher. Costco dividend article
• Positive Sentiment: Long-term business fundamentals remain a bullish backdrop. Analysts and commentators continue to point to Costco’s scale, limited product assortment, purchasing advantages and resilient same-store sales as reasons the stock could recover after trailing the S&P 500 and trading below its 52-week high. Fourth-quarter results, expected later this month, are the next major potential catalyst. Costco earnings preview
• Neutral Sentiment: Motor-oil pricing reflects supply pressures rather than a company-specific demand problem. Costco raised the price of a 10-quart case of Kirkland Signature full-synthetic motor oil to $57.99 and limited purchases to two cases per member per week. The changes follow higher crude-oil prices and supply disruptions linked to Middle East tensions and Saudi Arabia’s East-West pipeline closure. Higher prices may protect margins, but the restrictions could affect customer sentiment. Costco motor oil article
• Negative Sentiment: Rationing and sharply higher prices create reputational and traffic risks. Reports that Costco has also capped purchases of Mobil 1 oil—and that some motor-oil prices have risen substantially from last year—evoke earlier pandemic-era product shortages. While the merchandise is a small portion of revenue, frustrated members could view the move negatively or defer purchases. Costco motor oil rationing article
• Negative Sentiment: Valuation leaves limited room for disappointment. Costco trades at a premium earnings multiple, so investors may require strong sales, membership trends and profit guidance from the upcoming report to justify the valuation. Rising merchandise and operating costs could pressure margins if Costco cannot pass them through broadly. Costco stock performance article

Insider Transactions at Costco Wholesale

In related news, Director Kenneth 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 value of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. The trade was 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 through this hyperlink. 0.10% of the stock is owned by corporate insiders.

Costco Wholesale Price Performance

COST stock opened at $918.91 on Tuesday. The business's 50-day moving average is $939.46 and its two-hundred day moving average is $973.86. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The firm has a market capitalization of $407.52 billion, a P/E ratio of 46.22, a P/E/G ratio of 3.77 and a beta of 0.86. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50.

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 issued a $1.47 dividend. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is 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.

Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.