Keating Financial Advisory Services Inc. Acquires New Position in Costco Wholesale Corporation $COST

Key Points

• Keating Financial Advisory Services acquired 4,714 Costco shares worth approximately $4.41 million, making Costco its 25th-largest holding and about 0.6% of its portfolio.
• Institutional investors own 68.48% of Costco, while insider ownership is just 0.10%; Director Kenneth D. Denman recently sold 885 shares for approximately $847,343.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $1,059.53. However, Costco’s elevated 47.28 price-to-earnings ratio presents a key valuation risk.

Keating Financial Advisory Services Inc. acquired a new position in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 4,714 shares of the retailer's stock, valued at approximately $4,410,000. Costco Wholesale makes up about 0.6% of Keating Financial Advisory Services Inc.'s holdings, making the stock its 25th largest position.

A number of other hedge funds also recently added to or reduced their stakes in COST. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in shares of Costco Wholesale during the 4th quarter worth approximately $27,000. Lifetime Wealth Management P.C. purchased a new position in Costco Wholesale in the 4th quarter valued at approximately $28,000. Mcguire Capital Advisors Inc. purchased a new position in Costco Wholesale in the 4th quarter valued at approximately $28,000. Entrust Financial LLC acquired a new position in Costco Wholesale during the fourth quarter worth $31,000. Finally, Manning & Napier Advisors LLC raised its holdings in Costco Wholesale by 750.0% during the first quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer's stock worth $34,000 after purchasing an additional 30 shares during the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Costco Wholesale

In related news, Director Kenneth D. 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 sale, 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 document filed with the SEC, which can be accessed through this hyperlink. 0.10% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Bank of America upped 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. Truist Financial lifted 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. Guggenheim reiterated a "neutral" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Sanford C. Bernstein increased their price objective on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an "outperform" rating in a research note on Friday, May 29th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $1,120.00 target price on shares of Costco Wholesale in a report on Thursday, August 6th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $1,059.53.

More Costco Wholesale News

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

• Positive Sentiment: Earnings expectations remain favorable. Costco’s history of exceeding estimates, combined with analysts’ expectations for strong sales and earnings momentum, could support the shares ahead of the next quarterly report. Why Costco Could Beat Earnings Estimates Again
• Positive Sentiment: Analyst maintains bullish outlook. Mizuho reiterated a Buy rating and a $1,100 price target, citing confidence in Costco’s membership-driven growth and core operating performance. Analyst Reiterates Buy on Costco
• Positive Sentiment: International expansion offers a longer-term growth driver. Solid international comparable sales, additional warehouse capacity and expansion opportunities in Asia and Europe could gradually make overseas markets more important to Costco’s growth. Can International Markets Become Costco’s Biggest Driver?
• Positive Sentiment: New-store growth continues. A large Southern California warehouse is nearing completion, highlighting Costco’s ongoing domestic expansion and potential membership and sales contributions. Costco’s New California Location
• Neutral Sentiment: Costco is partnering with SCAN Health on a Medicare Advantage plan, potentially broadening member benefits and customer engagement, though the direct financial impact remains unclear. Why Costco? Experts Weigh In on SCAN Health’s New MA Plan
• Neutral Sentiment: Fall bakery promotions and favorable consumer coverage reinforce Costco’s retail appeal but are unlikely to materially change near-term earnings. Costco Fall Bakery Items
• Negative Sentiment: Valuation is the primary risk. Commentary argues that Costco’s exceptional operating record and decade-long stock gains are already reflected in a high earnings multiple, leaving less room for disappointment and potentially limiting upside. Why Investors Should Pause
• Negative Sentiment: Target may offer a more attractive risk-reward profile because of its lower valuation and improving momentum, creating a relative headwind for COST. Costco vs. Target
• Negative Sentiment: Walmart’s new rotisserie-chicken offering intensifies competition in a high-visibility Costco category, although the immediate impact on Costco’s results is uncertain. Walmart Challenges Costco With Rotisserie Chicken

Costco Wholesale Price Performance

Shares of NASDAQ:COST opened at $939.96 on Wednesday. The business's fifty day moving average price is $945.29 and its two-hundred day moving average price is $979.34. The stock has a market cap of $416.85 billion, a PE ratio of 47.28, a price-to-earnings-growth ratio of 4.31 and a beta of 0.87. 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.

Costco Wholesale Dividend Announcement

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

About Costco Wholesale

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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