Kranot Hishtalmut Le Morim Tichoniim Havera Menahelet LTD Acquires 4,723 Shares of Costco Wholesale Corporation $COST

Key Points

• Kranot Hishtalmut Le Morim Tichoniim Havera Menahelet LTD more than doubled its Costco stake in the second quarter, acquiring 4,723 shares for a total holding of 8,670 shares valued at approximately $8.1 million.
• Institutional investors own 68.48% of Costco’s outstanding stock, with several major funds increasing their positions during the quarter. Meanwhile, Costco director Kenneth Denman sold 885 shares at an average price of $957.45.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $1,056.03. Costco also pays a quarterly dividend of $1.47 per share, representing a 0.6% yield.

Kranot Hishtalmut Le Morim Tichoniim Havera Menahelet LTD increased its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 119.7% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 8,670 shares of the retailer's stock after acquiring an additional 4,723 shares during the quarter. Kranot Hishtalmut Le Morim Tichoniim Havera Menahelet LTD's holdings in Costco Wholesale were worth $8,111,000 as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in the business. Sarasin & Partners LLP lifted its position in Costco Wholesale by 6.9% during the second 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 during the last quarter. Perryman Financial Advisory Inc. AD acquired a new position in shares of Costco Wholesale in the fourth quarter valued at approximately $9,300,000. Nissay Asset Management Corp Japan increased its stake in shares of Costco Wholesale by 4.1% during the second quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer's stock worth $148,193,000 after purchasing an additional 6,200 shares during the period. Hyperion Asset Management Ltd lifted its holdings in shares of Costco Wholesale by 9.0% during the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer's stock worth $64,325,000 after buying an additional 5,656 shares in the last quarter. Finally, Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust bought a new stake in shares of Costco Wholesale in the fourth quarter valued at about $5,813,000. Institutional investors own 68.48% of the company's stock.

Insider Buying and Selling 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 transaction of $847,343.25. Following the sale, the director directly 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 is available through this hyperlink. Insiders own 0.10% of the company's stock.

Costco Wholesale Trading Up 1.6%

Shares of COST stock opened at $918.91 on Tuesday. The stock's fifty day moving average price is $939.46 and its two-hundred day moving average price is $973.86. The company has a market cap of $407.52 billion, a PE ratio of 46.22, a P/E/G ratio of 3.77 and a beta of 0.86. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. 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 Dividend Announcement

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

Wall Street Analyst Weigh In

A number of research firms recently commented on COST. Oppenheimer raised their price target on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 19th. JPMorgan Chase & Co. decreased their target price on shares of Costco Wholesale from $1,110.00 to $1,100.00 and set an "overweight" rating on the stock in a research report on Thursday, July 9th. UBS Group raised their target price on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a report on Wednesday, May 20th. Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a research report on Monday, June 1st. Finally, TD Cowen reiterated a "buy" rating and issued a $1,175.00 price target on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Twenty-two equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price 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

Costco Wholesale 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.

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