JLB & Associates Inc. Invests $1.57 Million in Costco Wholesale Corporation $COST

Key Points

• JLB & Associates initiated a Costco position worth approximately $1.57 million, purchasing 1,677 shares in the second quarter. Institutional investors collectively own 68.48% of Costco’s outstanding stock.
• Costco reported quarterly revenue of $70.53 billion, exceeding estimates, but EPS of $4.93 narrowly missed expectations. The stock trades at a high P/E ratio of 47.56 and remains below its 200-day moving average.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $1,059.53; Costco also pays a quarterly dividend of $1.47, equivalent to a 0.6% annual yield.

JLB & Associates Inc. bought a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 1,677 shares of the retailer's stock, valued at approximately $1,569,000.

A number of other hedge funds have also recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its holdings in shares of Costco Wholesale by 12.3% in the fourth quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock valued at $18,165,000 after acquiring an additional 2,172 shares during the period. Revolve Wealth Partners LLC increased its holdings in shares of Costco Wholesale by 13.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock valued at $1,029,000 after acquiring an additional 130 shares during the period. 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 valued at $3,814,000 after purchasing an additional 165 shares during the last quarter. 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 valued at $2,089,000 after purchasing an additional 23 shares during the last quarter. Finally, Schnieders Capital Management LLC. raised its position in Costco Wholesale by 2.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock valued at $8,416,000 after purchasing an additional 182 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company's stock.

Key Costco Wholesale News

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

• Positive Sentiment: Delivery expansion could boost engagement: Costco is now offering delivery for customizable sheet cakes and party platters, improving convenience and potentially encouraging larger, higher-margin event-related purchases. Costco delivery for cakes and party platters
• Positive Sentiment: Physical expansion continues: Costco opened its first warehouse in Celina, Texas, one of the nation’s fastest-growing cities. New locations can add membership revenue and sales over time, although the financial contribution will develop gradually. Costco opens Celina store
• Positive Sentiment: Long-term investor appeal remains intact: Commentary highlights Costco’s strong competitive moat, membership economics and potential for dividend growth. Its partnership with SCAN Health Plan to offer Medicare Advantage and supplemental plans also provides a potential new customer-engagement channel. Costco Medicare partnership
• Neutral Sentiment: Pricing strategy is both a strength and a challenge: Costco continues to hold its iconic rotisserie chicken at $4.99 by controlling production costs. The price reinforces customer loyalty, but inflation and supply costs could pressure margins if the company maintains the price indefinitely. Costco rotisserie chicken and inflation
• Negative Sentiment: Legal and valuation concerns are weighing on sentiment: Costco is refunding certain tariff duties while contesting a related class-action lawsuit, creating uncertainty over costs and potential liabilities. Separately, the stock’s high earnings multiple and position below its 200-day moving average leave it vulnerable to profit-taking; its latest quarterly EPS narrowly missed estimates despite a revenue beat. Costco tariff refunds and lawsuit

Costco Wholesale Price Performance

Costco Wholesale stock opened at $945.47 on Friday. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The company has a market cap of $419.30 billion, a P/E ratio of 47.56, a price-to-earnings-growth ratio of 4.50 and a beta of 0.87. The business has a fifty day moving average of $945.80 and a two-hundred day moving average of $979.92.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The firm had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same period last year, the company posted $4.28 EPS. As a group, analysts predict that Costco Wholesale Corporation will post 20.42 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement

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

Analyst Ratings Changes

Several research analysts have issued reports on COST shares. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $1,120.00 price objective on shares of Costco Wholesale in a research report on Thursday, August 6th. Citigroup started coverage on shares of Costco Wholesale in a research note on Thursday, June 18th. They set a "neutral" rating and a $1,020.00 target price for the company. Weiss Ratings lowered Costco Wholesale from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, June 23rd. Royal Bank Of Canada began coverage on Costco Wholesale in a research report on Monday, July 13th. They issued a "sector perform" rating and a $1,000.00 price target on the stock. Finally, 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 note on Friday, May 29th. Twenty-two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $1,059.53.

Insider Activity

In related news, Director Kenneth D. Denman sold 885 shares of the business's stock in a transaction dated 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 of the company's stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.10% of the stock is owned by corporate insiders.

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.

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).

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