Jennison Associates LLC Grows Stake in Costco Wholesale Corporation $COST

Key Points

• Jennison Associates LLC increased its Costco stake by 3.8% in the first quarter, buying 84,805 additional shares and bringing its position to 2.31 million shares valued at about $2.3 billion.
• Analyst sentiment remains mostly positive, with 22 Buy ratings, 12 Hold ratings, and one Sell rating; the consensus price target is $1,059.07, though several reports also noted valuation concerns.
• Costco’s recent performance showed some softness, as June comparable sales and international results were described as cooling, even though the company recently reported revenue above expectations and declared a $1.47 quarterly dividend payable on August 7.

Jennison Associates LLC boosted its stake in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 3.8% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 2,312,440 shares of the retailer's stock after acquiring an additional 84,805 shares during the quarter. Costco Wholesale comprises about 1.6% of Jennison Associates LLC's investment portfolio, making the stock its 16th biggest position. Jennison Associates LLC owned 0.52% of Costco Wholesale worth $2,304,185,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also modified their holdings of the stock. Brighton Jones LLC boosted its stake in shares of Costco Wholesale by 12.3% during the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock worth $18,165,000 after purchasing an additional 2,172 shares during the period. Revolve Wealth Partners LLC grew its holdings in Costco Wholesale by 13.1% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock valued at $1,029,000 after purchasing an additional 130 shares during the last quarter. Sivia Capital Partners LLC raised its position in Costco Wholesale by 4.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock worth $3,814,000 after purchasing an additional 165 shares during the period. Pinnacle Wealth Planning Services Inc. raised its position in Costco Wholesale by 1.1% in the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock worth $2,089,000 after purchasing an additional 23 shares during the period. Finally, Schnieders Capital Management LLC. lifted its stake in Costco Wholesale by 2.2% in the second quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock worth $8,416,000 after purchasing an additional 182 shares during the last quarter. 68.48% of the stock is owned by institutional investors.

Insider Activity

In related news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the transaction, the director owned 4,779 shares of the company's stock, valued at $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.10% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. BTIG Research restated a "buy" rating and set a $1,125.00 target price on shares of Costco Wholesale in a research report on Friday, May 29th. Bank of America increased their price target on Costco Wholesale from $1,185.00 to $1,200.00 and gave the stock a "buy" rating in a report on Friday, May 29th. Wells Fargo & Company raised their price target on Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 9th. The Goldman Sachs Group raised their price target on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a research note on Friday, May 29th. Finally, Sanford C. Bernstein boosted their price objective on Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an "outperform" rating in a report on Friday, May 29th. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Costco Wholesale presently has an average rating of "Moderate Buy" and a consensus price target of $1,059.07.

Costco Wholesale News Roundup

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

• Positive Sentiment: Erste Group Bank raised its FY2026 EPS estimate for Costco to $20.52 from $20.49, slightly above the Street consensus of $20.38, suggesting analysts still see modest earnings upside. Earnings forecast boost article
• Positive Sentiment: Costco remains a favorite dividend name, with its next ex-dividend date set for July 24, which may attract income-focused investors ahead of the payout. Dividend article
• Neutral Sentiment: A profile of a longtime Costco cashier who became a millionaire highlights the company’s employee retention and compensation culture, but it is unlikely to materially affect near-term fundamentals. Employee profile article
• Neutral Sentiment: Several local news items about new warehouses, gas stations, and remodels point to ongoing store expansion and reinvestment, but they are not major stock-moving catalysts by themselves.
• Negative Sentiment: MarketBeat said Costco’s June sales showed cooling comparable sales and weak international results, keeping the stock in “neutral” territory despite its premium valuation. Cooling comp sales article
• Negative Sentiment: Additional commentary from Zacks and Yahoo Finance argued Costco shares still look expensive after a strong multi-year run, reinforcing valuation concerns that can weigh on the stock. Valuation debate article

Costco Wholesale Trading Down 0.5%

Shares of COST opened at $940.87 on Friday. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50. The company has a 50-day moving average of $975.73 and a 200 day moving average of $977.54. The firm has a market capitalization of $417.26 billion, a price-to-earnings ratio of 47.33, a PEG ratio of 4.56 and a beta of 0.88. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). The company had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same quarter in the prior year, the company earned $4.28 earnings per share. On average, research analysts expect that Costco Wholesale Corporation will post 20.39 EPS for the current year.

Costco Wholesale Dividend Announcement

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

Costco Wholesale Company 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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