Jones Financial Companies Lllp Makes New Investment in Costco Wholesale Corporation $COST

Key Points

• Jones Financial Companies acquired 10,049 Costco shares worth approximately $9.4 million in the second quarter, while institutional investors collectively own 68.48% of the company.
• Costco shares opened at $915.74, below their 50-day and 200-day moving averages. The company pays a quarterly dividend of $1.47 per share, representing a 0.6% yield.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $1,056.90, though Costco’s elevated valuation and regulatory scrutiny present risks.

Jones Financial Companies Lllp acquired a new stake in Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 10,049 shares of the retailer's stock, valued at approximately $9,401,000.

A number of other hedge funds have also recently made changes to their positions in COST. World Investment Advisors lifted its position in shares of Costco Wholesale by 8.4% in the fourth quarter. World Investment Advisors now owns 20,081 shares of the retailer's stock worth $15,835,000 after buying an additional 1,560 shares in the last quarter. Sarasin & Partners LLP raised its holdings 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 bought a new position in shares of Costco Wholesale during the 4th quarter valued at approximately $9,300,000. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust bought a new position in shares of Costco Wholesale during the 4th quarter valued at approximately $5,813,000. Finally, Hyperion Asset Management Ltd grew its holdings in shares of Costco Wholesale by 9.0% in the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer's stock valued at $64,325,000 after purchasing an additional 5,656 shares in the last quarter. Institutional investors own 68.48% of the company's stock.

Costco Wholesale Stock Performance

Shares of Costco Wholesale stock opened at $915.74 on Friday. The stock's fifty day moving average is $943.58 and its two-hundred day moving average is $977.75. The company has a market capitalization of $406.11 billion, a PE ratio of 46.06, a price-to-earnings-growth ratio of 3.84 and a beta of 0.86. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. Costco Wholesale Corporation has a 52 week low of $844.06 and a 52 week high of $1,096.50.

Costco Wholesale Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were paid a dividend of $1.47 per share. 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 currently 29.58%.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on COST shares. Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Roth Capital boosted their target price on shares of Costco Wholesale from $769.00 to $781.00 and gave the stock a "sell" rating in a report on Friday, May 29th. The Goldman Sachs Group upped their target price on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday, June 1st. Finally, JPMorgan Chase & Co. reduced their price objective 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. Twenty-one equities 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 has a consensus rating of "Moderate Buy" and an average target price of $1,056.90.

Key Headlines Impacting Costco Wholesale

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

Insider Activity at Costco Wholesale

In other news, Director Kenneth Denman sold 885 shares of the company'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 transaction, the director directly owned 4,779 shares in the company, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.10% of the company's stock.

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source